The United Kingdom is in focus after the British pound fell to a new all-time low against the United States dollar. The sell-off was triggered by aggressive tax cuts announced by Prime Minister Liz Truss’ government. The 10-year gilt yield soared 131 basis points in September, on track for its biggest monthly increase since 1957, according to Reuters.
The currency crisis and soaring US Dollar Index (DXY) may not be good news for US equities and cryptocurrency markets. A ray of hope for Bitcoin (BTC) investors is that the pace of decline has slowed over the past few days and the June lows have yet to be re-tested.
That could be because Bitcoin’s long-term investors aren’t panicking. Data from on-chain analytics firm Glassnode shows that Bitcoin’s Coin Days Destroyed (CDD) metric gives more weight to coins that have been inactive for a long time. This suggests that coins held for long periods of time are “more passive than they’ve ever been”.
Can Bitcoin and Altcoins Continue Their Short-Term Outperformance? Let’s study the charts of top-10 cryptocurrencies to find out.
Bulls will continue to defend the $18,626 to $17,622 support zone with all their might. This is a positive sign as it shows that buyers are accumulating on dips to the support zone.
The price rebounded from the support zone on September 26 and the bulls will try to push the BTC/USDT pair above the 20-day exponential moving average (EMA) ($19,653). A close above this overhead resistance is the first indication of power. The pair may then rise to the 50-day simple moving average (SMA) ($20,960).
Bears are likely to pose a strong challenge in the zone between the 50-day SMA and $22,799. Buyers need to press the price above this zone to clear the way for a possible rally to $25,211.
This positive outlook can be invalidated if the price breaks down from the moving average and falls below $17,622. That may signal the beginning of the next phase of the downtrend.
Ether (ETH) has been trading in a tight range of $1,262 and $1,360 for the past three days. This indicates a resolution between bulls and bears.
If the bulls push above $1,360, the ETH/USDT pair could rally to the 20-day EMA ($1,430). This is an important level to watch because a break above it indicates that the bears may be losing their grip. The pair can then rally to the resistance line of the descending channel.
Conversely, if the price breaks below $1,360 or the 20-day EMA, the sentiment remains negative and indicates that traders are selling in rallies. Bears then try to sink the price back to the support line of the channel.
Buyers pushed BNB above the 20-day EMA ($276) on September 24 and 25 but were unable to sustain the highs. The price formed a doji candlestick pattern on September 25, indicating that traders are undecided about the next move.
However, since the price has been trading close to the 20-day EMA for the past few days, this improves the prospect of a rally to the resistance line of the descending channel.
This level may witness aggressive selling by bears but if the bulls do not allow the price to break below the 20-day EMA, BNB/USDT may break above the 50-day SMA ($289). Such a move indicates a potential trend change in the near term.
If the price breaks below the 20-day EMA or the resistance line of the channel, the bears will try to pull the pair to strong support at $258.
XRP rose to $0.56 on September 23, when profit-booking began. Bulls tried to resume the up-move on September 25 but the long wick above the candlestick shows selling in intraday rallies.
The XRP/USDT pair may next drop to the 50% Fibonacci retracement level of $0.44. If the price rebounds from this level, the bulls will make another attempt to push the price above $0.56 and resume the up-move to $0.66.
Conversely, if the price falls below $0.44, the pair may drop to the breakout level of $0.41. 61.8% Fibonacci retracement level near $0.41; Therefore, the bulls are likely to defend this support aggressively.
ADA rose above the 20-day EMA ($0.46) on September 23 but the bulls could not pierce the 50-day SMA ($0.48). A long candle above the day candle indicates that the bears are highly active.
Buyers again tried to push the price back above the 20-day EMA on September 24 and 25 but the bears held their ground. That pulled the price to the uptrend line. This is an important step for the bulls to defend because if they fail to do so, the ADA/USDT pair could collapse to key support at $0.40.
Conversely, if the price rebounds from the uptrend line, the bulls will try to drive the pair back above the downtrend line. If they manage to do that, the pair could go to $0.52.
Solana (SOL) broke and closed above the 20-day EMA ($33) on September 23 but the bulls could not build on this strength. It attracted selling on September 24 as the price failed to push above the 50-day SMA ($35). That dragged the price below the 20-day EMA on September 25.
The bulls have not given up yet and are trying to push the price back above the 20-day EMA. If they succeed, the SOL/USDT pair could rally to the 50-day SMA. Bulls need to clear this hurdle to set the stage for a possible rally to $39.
Contrary to this hypothesis, if the price falls below the moving average, it indicates that the bears are not in the mood to repent. That could increase the risk of a break below $30. If that happens, the pair could retest key support at $26.
Dogecoin (DOGE) broke and closed above the 20-day EMA ($0.06) on September 23, the first sign of easing selling pressure.
Buyers maintained their momentum and pushed the price above the 50-day SMA ($0.07) on September 24 but could not sustain the higher level. This shows that the bears have not yet given up and are selling on rallies.
On September 25 the price dipped back to the 20-day EMA but a small positive is that the bulls are trying to defend this level. If the bulls turn this level to support, the pair could rally to $0.08.
Alternatively, if the price declines and falls below strong support, the DOGE/USDT pair may retest the June low at $0.05.
Related: Cardano Bulls Run Out of Steam After Vasyl Hard Fork – 40% ADA Price Drop
Polkadot (DOT) again bounced off critical support at $6 on September 26, indicating that bulls are aggressively defending this level. The price may jump to the 20-day EMA ($6.74), where the bears will try to stop the recovery.
If the price breaks below the 20-day EMA, it increases the possibility of a break below the support at $6. If that happens, selling may gain momentum and the DOT/USDT pair may resume the downtrend. The pair may then slide to $4.
If the bulls want to stop this decline, they need to quickly push the price above the 20-day EMA and hold. The pair may then rally to the overhead resistance zone between the 50-day SMA ($7.48) and $8. A break and close above the zone could open the door to a possible rally to $9.17 and then $10.
Polygon’s (MATIC) relief rally stalled near the 20-day EMA ($0.79) on September 23, indicating continued bear selling in short rallies. The price has fallen to strong support at $0.72, where buyers will step in to stop the decline.
A strong bounce from current levels suggests a rally near $0.72. The bulls then make another attempt to push the price above the 20-day EMA. If they can pull it off, the MATIC/USDT pair could rise above the 50-day SMA ($0.84) and then $0.94.
Instead, if the price declines and breaks below the $0.72 to $0.69 support zone, the $0.72 to $1.05 range indicates that the downside is resolved. That could pull the pair to $0.62 and then to $0.52.
Bulls pushed Shiba Inu (SHIB) above the 20-day EMA ($0.000011) on September 24 but the long wick on the candlestick shows bears selling higher.
Bears will try to sink the price to immediate support at $0.000010. This level has served as strong support in the past; Hence, bulls are likely to defend it vigorously.
Buyers need to push the price above the moving average to signal that selling pressure may be easing. The SHIB/USDT pair may then rise to $0.000014, where the bears may raise strong resistance again. If the bulls break this barrier, the pair could rise to $0.000018.
On the downside, a break below $0.000010 could intensify selling and the pair could slide to critical support at $0.000007.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data provided HitBTC Exchange.