The UK has been in the spotlight since the British pound fell to a new record low against the US dollar. The sale was prompted by steep tax cuts announced by Prime Minister Liz Truss’ government. 10-year gold yields rose 131 basis points in September, the largest monthly gain since 1957, according to Reuters.
The currency crisis and the rise in the US Dollar Index (DXY) may not be good news for the US stock and cryptocurrency markets. The silver lining for Bitcoin (BTC) investors is that the decline has slowed in recent days, with the June low yet to be retested.
Daily indicators in the cryptocurrency market. Source: Coin360
This may be because long-term bitcoin investors don’t seem to panic. Data from analytics firm Glassnode shows that the Bitcoin Coin Days Destroyed (CDD) scale, which gives more weight to coins that have been dormant for a long time, has reached a new low. This indicates that coins stored for a long time are “the most idle of all”.
Can Bitcoin and altcoins continue to dominate in the short term? Let’s check out the charts of the top 10 cryptocurrencies to find out.
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Bitcoin / US Dollar
The bulls continue to struggle to defend the support area from $18,626 to $17.622. This is a positive sign as it shows that buyers are gaining momentum on the dip towards the support area.
BTC/USDT daily chart. Source: Trading View
The price bounced from the support area on September 26 and the bulls will try to push the BTC/USDT pair above the 20-day exponential moving average (EMA) ($19653). A close above this upper resistance level will be the first sign of strength. The pair can then move up to the 50-day simple moving average (SMA) ($20,960).
Bears are likely to become a major problem in the area between the 50-day SMA and $22,799. Buyers need to push the price above this area to make way for a potential rally to $25211.
This bullish view could be invalidated if the price moves away from the moving averages and drops below $17,622. This may signal the beginning of the next phase of the downtrend.
ETH / USDT
Ether (ETH) has been trading in a narrow range of $1,262 to $1,360 over the past three days. This speaks of the frequency of bulls and bears.
ETH/USDT daily chart. Source: Trading View
If the bulls push the price above $1360, ETH/USDT could rise to the 20-day moving average ($1430). This is an important level to watch because a break above this level could mean that the bears may lose their grip. Then the pair may rise to the resistance line of the descending channel.
Conversely, if the price breaks from $1360 or the 20-day EMA, this means that sentiment remains negative and traders are selling on the upside. Then the bears will try again to lower the price to the channel support line.
BNB / USDT
Buyers pushed BNB above the 20-day moving average ($276) on September 24 and 25 but failed to hold onto higher levels. On September 25, the price formed a doji candlestick pattern, indicating that traders are not sure of the next move.
BNB/USDT daily chart. Source: Trading View
However, since the price has been trading near the 20-day moving average over the past few days, this improves the prospects for a rise towards the descending channel’s resistance line.
This level could see a strong sell-off from the bears, but if the bulls do not allow the price to break below the 20-day moving average, BNB/USDT could break above the 50-day simple moving average ($289). This movement may indicate a possible trend change in the short term.
If the price breaks out of the 20-day moving average or the channel resistance line, the bears will try to pull the pair towards the strong support at $258.
XRP / USDT
XRP rose to $0.56 on September 23 as earnings began to be recorded. The bulls attempted to resume the rally on September 25th, but the long wick on the candle is showing intraday selling.
XRP/USDT daily chart. Source: Trading View
XRP/USDT may drop to the 50% Fib retracement level of $0.44 next time. If the price pulls back from this level, the bulls will make another attempt to push the price above $0.56 and resume growth to $0.66.
Conversely, if the price drops below $0.44, the pair may drop to the breakout level of $0.41. The 61.8% Fibonacci retracement rate is also around 0.41 USD; Therefore, the bulls are likely to aggressively defend this support.