Bitcoin, ATOM, APE, CHZ, and QNT may continue to recover for a few more days
Bitcoin, ATOM, APE, CHZ and QNT may continue to recover for a few more days according to their chart patterns.
The U.S. equities markets had a strong rally last week, which ended a three-week losing streak. The S&P 500 index rose by 3.65% last week while the Nasdaq Composite index soared by 4.14%. Bitcoin (BTC) also made a strong comeback and is currently trying to end the week with gains of more than 7%.
The recent rally in the stock and cryptocurrency markets may be indicative of a bottom formation, but it is too early to predict the start of a new bull market. The equity markets may remain volatile before the release of U.S. inflation data on September 13 and the Federal Reserve meeting on September 20-21.
The next few days could be crucial for the cryptocurrency market, as Ethereum's long-awaited merge and Cardano's hard fork are both scheduled to take place. These events could trigger increased volatility in a number of different cryptocurrencies, so traders and investors will need to be extra vigilant.
In the near term, nimble traders may be able to take advantage of choppy markets to score some profits. Let's take a look at the charts of five interesting cryptocurrencies.
BTC/USDT: The Battle of the Cryptos
The recent surge in the price of Bitcoin has been very encouraging for investors and enthusiasts alike. The digital currency has been on a tear lately, and it looks like the momentum could continue. The 20-day exponential moving average is currently at $20,662, and Bitcoin has already soared past that level. This is a good sign that the selling pressure is beginning to reduce. However, the bears are still trying to stall the recovery at the 50-day simple moving average, which is currently at $21,946. But the fact that the bulls have not given up much ground is a positive sign.
It seems that the bulls are in control at the moment, with the 20-day EMA starting to slope up gradually and the RSI in positive territory. If they can push the price above the 50-day SMA, there is potential for a rally towards the stiff overhead resistance at $25,211. However, the bears are likely to put up a strong fight at this level.
It is important to keep an eye on the 20-day EMA, as a break and close below it could signal a drop in price to $18,626. Alternatively, if the price rebounds off the 20-day EMA, it increases the likelihood of a break and close above the 50-day SMA.
It seems that every dip is being bought up, suggesting that buyers are still in control despite the challenges they face near $22,000. This could mean that we could see further gains in the near future as buyers continue to push the market higher.
I believe that if the bulls can push the price above $22,000, we could see a quick rally toward $23,500. However, the bears may attempt to stall the up-move at that point. We will have to wait and see how the market develops.
It is assumed that if the price of Bitcoin falls and breaks below the 20-EMA, it could drop to $20,576. However, if the price breaks below this level, it suggests that the pair may consolidate in a large range between $22,000 and $18,626 for some time.
ATOM/USDT: A New Way to Trade Cryptocurrencies
Cosmos (ATOM) looks bullish after breaking above the key resistance level of $13.45. The next major resistance level is at $20.30, which leaves room for a further rally. Therefore, Cosmos (ATOM) looks like a good buying opportunity at current levels.
It's important to keep an eye on the $13.45 level, as a break and close below it could indicate that the recent breakout was a false positive. The bears will try to push the price below this level before buyers step in again.
If the price turns up from the current level or rebounds off $13.45, it will suggest that bulls are in control and buying on every dip. If bulls thrust the price above $17.20, the up-move may pick up momentum and reach $20.30.
The ATOM/USDT pair surged after breaking above the overhead resistance at $13.45, pushing the RSI deep into the overbought territory. However, the bulls have not given up much ground, which is a positive sign.
There is a possibility that the price of the pair may rebound off the current level and break above $17.20. If that happens, the up-move may continue and the pair may rally toward $20.30.
If the price of Bitcoin continues to fall, it could have serious implications for the cryptocurrency market. If it falls below the 20-EMA, it could decline to the 50% Fibonacci retracement level of $14.36. This would be a major setback for Bitcoin and could have ripple effects throughout the cryptocurrency market.
APE/USDT: A New Way to Trade USDT
ApeCoin (APE) looks like it could be a good candidate for a short-term investment, as it has rebounded strongly off the support at $4.17. This suggests that the corrective phase may be ending, making it an interesting candidate for the short term.
It looks like the buyers are in control right now and they may push the price even higher in the coming days. The bears may try to stall the recovery at around $5.85, but it remains to be seen if they will be successful.
The current price level suggests that traders are buying on dips, which could mean that the sentiment has turned positive. If the price rebounds off the 20-day EMA, the bulls will attempt to drive the price above the 50-day SMA. If they are successful, the pair could soar toward the overhead resistance at $7.80.
It is possible that the positive view on the US dollar may not last long if the price falls below the 20-day EMA. In this case, the value of the dollar may drop to $4.17.
The 20-EMA on the 4-hour chart is starting to turn up, and the RSI has risen into the overbought territory. This indicates that bulls have the upper hand, but a short-term pullback is possible.
The current price level suggests strong demand from buyers, but if the price falls below $5.30, it could mean that sellers are starting to take control. If the price rebounds off $5.30, it will suggest that buyers are still interested in the stock, and the bulls will make another attempt to push the price above $5.83. If they are successful, the recovery could extend to $6.44.
If the price of the asset turns down and breaks below the 20-EMA, this may signal that the bears have the advantage in the market.
Chiliz (CHZ) soars against the US dollar, leading altcoins higher.
It is positive that Chiliz (CHZ) has broken above the 20-day EMA ($0.20), as this suggests that the corrective phase may be coming to an end. This token is definitely one to watch in the near future.
It looks like the bears are trying to push the price of the asset below the 20-day EMA, but the bulls are holding their ground. The buyers are attempting to push the price up to the overhead resistance at $0.26, but they may face some strong headwinds near $0.23.
It is likely that the price will turn down and break below $0.20, which would suggest that bears are active at higher levels. This could pull the price down to the 50-day SMA ($0.18).
It looks like the bears are still in control for now, but if the price starts to rebound off the moving averages, it could be a sign that the bulls are making a comeback. We'll have to wait and see how things play out over the next few hours.
buyers will continue to try and push the price above the downtrend line. If they are successful, the pair may start to move northward toward $0.23 and later to $0.26. This would be a positive development for the market and could lead to further gains in the future.
If the price of the pair falls below $0.20, it is likely that it will remain inside the falling wedge pattern. This could pull the price down to $0.18.
Quantstamp (QNT) partners with Binance to launch USDT-backed stablecoin
The sentiment around Quant (QNT) remains positive, with bulls buying on dips. The strong support at $87.60 indicates that there is still confidence in the asset, and it remains a good selection for investors.
It looks like the bears are losing steam and the corrective phase may be coming to an end. The price broke above the 20-day EMA on Sept. 8 and has been holding above it since. The 50-day SMA is proving to be a tough level of resistance, but if the bulls can break through it, we could see a move back up to the highs around $115.
It is positive to see the sentiment turn around and the bulls start buying on dips again. This could push the price of the QNT/USDT pair up to $117 and then $124. If the bulls can maintain these higher levels, it could open the door for a rally all the way up to $130.
If the price of the currency pair turns down and breaks below the 20-day EMA, this bullish view could be invalidated. If that happens, the pair could drop to the strong support at $87.60.
It looks like the bears are having a tough time pushing the price below $87.60, as the bulls keep stepping in to buy the dips. This could be a sign that traders see any dips as a buying opportunity, which could help push the price even higher.
The buyers have resumed the recovery by pushing the price above the overhead resistance at $108. The pair could rally to $113 and later to $117. However, if the price turns down and plummets below the 20-EMA, the pair could drop to the 50-SMA.