Most top cryptocurrencies, including Bitcoin, plunged towards their crucial support zones, likely to attract massive buying by bulls.
The United States equity markets and the crypto space saw a sell-off on 20 September amid fears that China’s property agent Evergrande will collapse, hurting China and affect other markets. In bearish sentiment, traders dump their ‘risky’ positions to alleviate massive losses. That contributed to the dramatic loss in the cryptocurrency market yesterday.
Bybit data indicates that BTC held in Binance accounts increased by 29,717 BTC over the last 30 days. History shows that the surging BTC balance on the exchange has caused Bitcoin’s price drop. For instance, the Binance BTC balance rose to 347,590 on 26 June from 99,700 BTC on 20 April. At the time, BTC had its value plunging towards $30,000 from $57,000.
Now, will the plummets continue, or the lower prices will attract buyers? Here is that top tokens have at the moment.
BTC/USDT
BTC’s selling worsened after bearishness dragged the value beneath the MAs. The price movements in the past few sessions resulted in a head-shoulder formation that will confirm upon a loss and close under the neckline. The MA nears a bearish cross as the RSI plunged beneath 41, suggesting bearishness in control. If the token maintains its price under the neckline, BTC/USDT might plummet towards $37,332, then $32,423.
Contrarily, if the asset rebounds off this neckline, bulls will aim at the $50,000 mark again. However, bears seem to shield the 20-d EMA ($47,014) violently. If the coin fails to challenge this resistance, negative sentiment will emerge, prompting massive selling. Bitcoin has to break and close past $48,843 to indicate a market strength.
ETH/USDT
On 20 September, ETH bounced off its $3,377 support, but bulls failed to maintain the alt beyond the 20-day exponential moving average ($3,402), which shows that investors closed their positions at advanced price levels.
If the asset’s price breaks to close beneath $3,000, ETH/USDT will conclude a bearish head-shoulder formation, likely to hit the target at $1,972. Meanwhile, the 20-d EMA moves lower as the RSI stays beneath 42, confirming that the downwards road has fewer obstacles.
However, if bulls emerge with aggressive actions to defend $3,000, the pair might surge to the upside resistance near $3,377. Bears might defend this zone, but if bulls conquer the obstacles, the correction could be over.
