BTC and altcoins are attempting to capitalize on today’s market-wide oversold bounce but the recovery could be thwarted by sell pressure at overhead resistance levels. Analysts are attributing Bitcoin’s plunge to the liquidation of over-leveraged positions.
BTC/USDT
Bitcoin witnessed instability when it plunged from an intraday high at $52,920 to an intraday low at $42,843.05. Strong buying at lower levels resulted in a sharp recovery by the close, as seen from the long tail on the day’s candlestick. The bulls held off another attempt by the bears to extend the correction by pulling the price below the 50-day simple moving average ($44,391). This suggests that traders are violently defending the zone between the 50-day SMA and the breakout level at $42,451.67.
ETH/USDT
Ether’s failure to rise and sustain above $4,000 could have attracted aggressive profit-booking from the short-term traders. The selling intensified after the price slipped below the immediate support at $3,705.05. The bulls could not arrest the decline at the 20-day EMA ($3,486), resulting in a drop to the critical support at $3,000. This level attracted strong buying and the ETH/USDT pair staged a strong recovery, as seen from the long tail on the day’s candlestick.
ADA/USDT
Vertical rallies are usually followed by waterfall declines as traders rush to the exit and that is what happened in Cardano (ADA) on Sep. 7. The failure to sustain the price above the psychological level at $3 may have resulted in aggressive profit-booking by the bulls. As the decline broke below the 20-day EMA ($2.62), it may have triggered several stops. Due to that, the ADA/USDT pair could have plummeted to the 50-day SMA ($2.03). The long tail on the day’s candlestick shows aggressive buying at lower levels.
BNB/USDT
Binance Coin (BNB) turned down from the overhead resistance at $518.90 on Sep.7 and broke below the moving averages. Although bulls defended the 50-day SMA ($399) on a closing basis, the failure to push and sustain the price above $433 may attract further selling.
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