Home CryptocurrencyAltcoin Cryptocurrency traders watch ATOM, APE, CHZ and QNT as Bitcoin flashes lower signs

Cryptocurrency traders watch ATOM, APE, CHZ and QNT as Bitcoin flashes lower signs

by SuperiorInvest

U.S. stock markets rallied last week, snapping a three-week losing streak. S&P 500 roses 3.65% last week, while the Nasdaq Composite soared 4.14%. Bitcoin continues its close correlation with US stock markets (BTC) has also made a strong comeback and is looking to end the week with gains of more than 7%.

A sharp rally in the stock and cryptocurrency markets is showing signs of a bottom, but it may be too early to predict the start of a new bull run. Equity markets may remain on edge ahead of the release of US inflation data on September 13 and the Federal Reserve meeting on 20-21. September.

Daily view of crypto market data. Source: Coin360

Along with taking cues from the stock markets, the cryptocurrency space has its own important events to look forward to. Merging both Ethereum and Cardano’s (ADA) Vasil hard fork scheduled for the next few days could increase the volatility of several cryptocurrencies.

Although choppy markets increase risk, they can offer short-term trading opportunities to savvy traders. Let’s study the charts of five cryptocurrencies that look interesting in the near term.

BTC/USDT

Bitcoin soared above its 20-day exponential moving average ($20,662) on September 9, the first indication that selling pressure might be easing. The bears are trying to stop the recovery at the 50-day simple moving average ($21,946), but the positive sign is that the bulls haven’t given up too much.

BTC/USDT Daily Chart. Source: TradingView

The 20-day EMA has started to gradually decline and the Relative Strength Index (RSI) is in positive territory, indicating that the path of least resistance is to the upside. If the bulls drive the price above the 50-day SMA, the BTC/USDT pair could recover towards a tight overhead at $25,211. Bears are expected to defend this level with vigor.

Another possibility is that the price turns from the 50-day SMA. If this happens, the pair may drop to the 20-day EMA. This is an important level to watch as a break and close below it could open the door for a move down to $18,626. Alternatively, if the price bounces off the 20-day EMA, the probability of a break above the 50-day SMA will increase.

BTC/USDT 4 hour chart. Source: TradingView

The pair gained strength after breaking above the $19,520 breakdown level. The sharp recovery has pushed the RSI into overbought territory, suggesting a minor consolidation or correction. Buyers are facing a stiff challenge near $22,000, but they haven’t given in to the bears. This suggests that every minor dip is being bought.

If the bulls drive the price above $22,000, the pair could quickly rally towards $23,500, where the bears may again try to stop the rise.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, the pair could fall to $20,576. A break below this level suggests that the pair may consolidate in a large range between $22,000 and $18,626 for some time.

ATOM/USDT

Cosmos (ATOM) broke above $13.45 overhead resistance on September 8, indicating demand at higher levels. Another stiff resistance is at $20.30, leaving room for a recovery.

ATOM/USDT daily chart. Source: TradingView

Even before that, however, the bears will try to pull the price below the $13.45 threshold. This is an important level to watch out for, as a break and close below it will indicate that the recent breakout may have been a bull trap.

On the other hand, if the price rises from current levels or rebounds from $13.45, it will indicate that the bulls are in control and are buying on any dip. If the bulls push the price above $17.20, the move up may gain momentum and reach $20.30.

ATOM/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the ATOM/USDT pair rallied after breaking overhead resistance at $13.45. This pushed the RSI deep into overbought territory and started a correction, but the positive sign is that the bulls haven’t given up too much.

If the price rebounds from the current level, the possibility of a break above $17.20 increases. If this happens, the upside may continue and the pair may recover towards $20.30.

This positive outlook could be invalidated in the near term if the price continues lower and falls below the 20-EMA. If this happens, the pair could drop to the 50% Fibonacci retracement level of $14.36.

APE/USDT

ApeCoin (APE) rebounded strongly from support at $4.17, indicating aggressive buying at lower levels. This suggests that the corrective phase could be ending, making it an interesting short-term candidate.

APE/USDT Daily Chart. Source: TradingView

Buyers pushed the price above the 20-day EMA ($5) on September 9, and the APE/USDT pair formed an inner Doji candlestick pattern on September 10. This uncertainty resolved to the upside on September 11 with a strong rally to the 50-day SMA ($5.85). Bears may try to stop the recovery at this level.

If the price breaks down from the current level but bounces off the 20-day EMA, it will indicate that sentiment has turned positive and traders are buying dips. The bulls will then try again to move the price above the 50-day SMA. If they do, the pair could rise towards overhead resistance at $7.80.

This bullish view could be invalidated in the near term if the price were to decline and break below the 20-day EMA. In that case, the pair may drop to $4.17.

APE/USDT 4 hour chart. Source: TradingView

The 20-EMA on the 4-hour chart started to turn and the RSI rose into overbought territory. This suggests that the bulls have the upper hand, but a short-term pullback is possible.

If the price breaks down from the current level but rebounds from $5.30, this will indicate strong demand at the lower levels. The bulls will then make another attempt to push the price above $5.83 and extend the recovery to $6.44.

Alternatively, if the price turns lower and falls below the 20-EMA, the advantage may tilt in favor of the bears.

Related: Terra back from the dead? The price of LUNA will increase by 300% in September.

CHZ/USDT

Chiliz (CHZ) broke above the 20-day EMA ($0.20) on September 9, which was the first indication that the correction phase may be ending. That’s why this token made it to the list.

CHZ/USDT daily chart. Source: TradingView

On September 10, the bears tried to pull the price back below the 20-day EMA, but the bulls held on. Buyers are trying to push the price towards overhead resistance at $0.26, but a move up may face strong headwinds near $0.23.

If the price turns down but does not break below the 20-day EMA, it will increase the probability of a rally to $0.26. Contrary to this assumption, if the price turns down and falls below $0.20, it will indicate that the bears are active at higher levels. This could pull the price to the 50-day SMA ($0.18).

CHZ/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the bears are blocking the downtrend line. If the price breaks down from the current level but rebounds from the moving averages, it will indicate that the bulls are attempting a comeback.

Buyers will then try again to move the price above the descending trend line. If they succeed, the pair may start its northward march towards $0.23 and later towards $0.26.

Alternatively, if the price falls below $0.20, it will indicate that the pair may remain inside a descending wedge pattern. This could bring the price down to $0.18.

QNT/USDT

Quantity (QNT) failed to break below strong support at $87.60, indicating that sentiment is positive and bulls are buying dips. This is the reason for his selection.

QNT/USDT Daily Chart. Source: TradingView

A sharp bounce from $87.60 broke above the 20-day EMA ($100) on September 8, which was the first indication that the corrective phase may be over. Bears posed a strong challenge near the 50-day SMA ($105), but failed to push the price back below the 20-day EMA.

This suggests that sentiment has turned positive and bulls are buying dips. Buyers pushed the QNT/USDT pair above the 50-day SMA on September 11. If bulls hold higher levels, the pair could rise to $117 and then $124. A break above this level could open the door to a rally to $130.

This bullish view could be invalidated if the price declines and breaks below the 20-day EMA. If that happens, the pair could drop to strong support at $87.60.

QNT/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the pair has bounced sharply from support at $87.60. Bears posed a strong challenge near $108, but a positive sign is that bulls bought the dip to the 20-EMA. This suggests that traders see dips as a buying opportunity.

Buyers renewed the rally by pushing the price above overhead resistance at $108. The pair could rise to $113 and later to $117. Conversely, if the price turns down and falls below the 20-EMA, the pair could drop to the 50-SMA.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph. Every investment and trading step involves risk, you should do your own research when making a decision.

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