The cryptocurrency market was shaken on September 24 after reports that the Chinese government was taking a number of new measures, including “handling payment channels, websites and applications.

While this news led to a sell-off, long-term investors shouldn’t be bothered as nothing else is known besides announcing additional measures to effectively enforce the current ban.

China first announced a crypto ban in September 2017, and that news also led to a sharp correction in Bitcoin. That drop, however, proved to be a good buying opportunity as the price rebounded in weeks and hit an all-time high of nearly $ 20,000 in less than three months.

Is the current correction in Bitcoin and most of the major cryptocurrencies a good buying opportunity or could the crypto market continue to fall? Let’s analyze the top 10 cryptocurrency charts to find out.

BTC technical analysis

Bitcoin bounced off the 100-day SMA ($ 40,874) and rose above the neckline of the dominant head-and-shoulders pattern on September 22nd. This shows strong demand at lower levels, but a rebound failed to break the hurdle at the 20-day EMA ($ 45,596).

BTC / USDT daily chart | Source: TradingView

The 20-day EMA is sloping down and the relative strength index (RSI) is in negative territory, showing that the bears have the upper hand. If the bears turn down and hold the price below the 100-day SMA, the BTC / USDT pair may plunge to $ 37,332.

This level could act as strong support, but if it breaks the next stop could be the target of the $ 32.423 pattern.

Contrary to this assumption, if the price rises from current levels or the 100-day SMA, the bulls will try again to get the pair above the moving averages. A closing price above the 50-day SMA ($ 46,816) suggests the correction may be over.

Technical analysis of the ETH

Ether (ETH) rebounded from the 100-day SMA ($ 2,734) on September 22nd, climbing above the $ 3,000 breakout. This shows that the bulls bought the dip and tried to trap the aggressive bears.

ETH / USDT daily chart | Source: TradingView

However, the rebound stalled at $ 3,174.5 on Sept. 23, and the bears are trying to gain supremacy. The 20-day EMA is falling ($ 3,255) and the RSI is below 41, showing that the bears are in charge.

If ETH / USDT breaks and closes below the 100-day SMA, there could be strong selling. After that, the pair may fall to the target of the pattern at $ 1,972. This negative view will be invalidated if the bulls push and hold the price above the 20-day EMA.

Technical analysis of the ADA

Cardano’s strong rebound from $ 1.94 hit a hurdle at the 20-day EMA ($ 2.36). This shows that sentiment remains negative and traders are selling on rallies to the 20-day EMA.

Daily ADA / USDT Chart | Source: TradingView

Now the bears will try to bring the price below the critical support area at $ 1.94 and the 100-day SMA ($ 1.83). If successful, the ADA / USDT pair can drop to $ 1.60 and then to $ 1.40.

However, if the price rises from current levels or rebounds from $ 1.94, the bulls will try again to break the overhead barrier. A breakout and close above the 20-day EMA are the first signs that the correction may be over. After that, the pair can rebound to $ 2.60 and $ 2.80.

BNB. Technical analysis

Binance Coin’s (BNB) rebound from strong support at $ 340 hit the hurdle at $ 385.30, indicating strong sales by traders at higher levels.

BNB / USDT daily chart | Source: TradingView

The downward sloping 20-day EMA ($ 402) and the RSI below 37 show the bears are in control. If the $ 340 support is broken, sales can intensify and the BNB / USDT pair can extend its decline to $ 300 and then $ 250.

Contrary to this assumption, if price rebounds from current levels, the bulls will take one more step to push the price above the moving averages. A breakout and a close above $ 433 signal that the correction may be over.

Technical XRP analysis

XRP bounced off the 100-day SMA ($ 0.87) on September 22nd, but the bulls failed to extend the rebound. The altcoin formed a doji candlestick pattern on September 23, showing indecision between the bulls and the bears.

XRP / USDT daily chart | Source: TradingView

The uncertainty cleared to the bottom today as the bears pushed the price down towards the 100-day SMA. If this support breaks, selling can gain momentum and the XRP / USDT pair can slide to $ 0.7.

This level could act as strong support, but if the bears push the price below then the next stop could be at $ 0.50. That negative view will be dashed if the price bounces off the 100-day SMA and climbs above the $ 1.07-1.13 resistance area.

SOL. technical analysis

Solana (SOL) rebounded to cross the 20-day EMA (145) on September 22nd, but the bulls were unable to push the price above the downtrend line. This shows that the bears are selling in the rallies.

Daily SOL / USDT chart | Source: TradingView

The bears pushed the price back below the 20-day EMA today and the SOL / USDT pair may now plunge to the 50-day SMA ($ 108). This level should serve as strong support.

When the price recovers from this, the bulls will try again to push the price above the downtrend line and hold it. If successful, the pair can rebound to $ 170 and then to $ 200.

Conversely, if the 50-day SMA breaks, the pair could see panic selling and then a decline to the 78.6% fib retracement level at $ 98.26.

Technical DOT analysis

Polkadot’s (DOT) rally of $ 25.50 stalled at $ 33.60. This shows that the bears are selling at higher levels. You are now trying to pull the price below the breakout at USD 28.60. If they do that, the price will likely retest $ 25.50.

DOT / USDT daily chart | Source: TradingView

A breakout and a close below $ 25.50 complete a dominant head and shoulders pattern. Thereafter, the DOT / USDT pair may initiate a decline to the 100-day SMA ($ 21.87) and below the target of the pattern at $ 12.23.

Contrary to this assumption, if price rebounds from current levels or the neckline, the bulls will take another step to resume the upward momentum. A break and close above $ 33.60 could open the door for a retest of $ 38.77.

DOGE technical analysis

The bulls pushed Dogecoin (DOGE) above $ 0.21 on September 22nd, but the rebound failed to attract buyers at higher levels. After forming an inside bar candlestick pattern on September 23, the price fell below $ 0.21 today.

Daily DOGE / USDT Chart | Source: TradingView

The sloping 20-day EMA ($ 0.23) and the RSI near 36 suggest sellers have the upper hand. If the bears break below the $ 0.19 support, the DOGE / USDT pair can extend its decline to the critical support at $ 0.15.

This level has held up for the past three occasions and the bulls will try again to defend it. On the flip side, if the bears drop the price below $ 0.15, sales can pick up and the pair can drop to $ 0.10.

Technical analysis by AVAX

Avalanche (AVAX) rebounded from the 20-day EMA ($ 60.15) on September 21st, and hit a new all-time high on September 23rd, can cause short-term traders to take profits.

AVAX / USDT daily chart | Source: TradingView

The AVAX / USDT pair turned down today and the first stop could be the support line of the channel. A strong rebound from this support zone will show that the uptrend is still intact and traders are accumulating on the downside. After that, the pair can climb to $ 94.

On the other hand, a break and closure below the channel is the first sign that the bulls may have lost control. If the bears pull the price below the 20-day EMA, the pair can fall to $ 48 and then to the 50-day SMA ($ 43.06).

Technical analysis by LUNA

The cops successfully defended a retest of the Terra (LUNA) outbreak on September 21st. This shows that sentiment remains positive and traders see the decline as a buying opportunity.

Daily LUNA / USDT chart | Source: TradingView

Buyers pushed the price above the 20-day EMA ($ 33.06) on September 22nd, followed by another upward move on September 23rd. Although the 20-day EMA has started rising, a bearish divergence from A has appeared on the RSI, suggesting that bullish momentum may be wearing off.

If the bears pull and hold price below the 20-day EMA, the LUNA / USDT pair may fall again to the critical support at $ 22.40. This is an important level to watch out for because if it is breached, sales could intensify and the pair could drop to $ 18.

On the flip side, the pair can retest the all-time high of $ 45.01 if the bulls push the price above $ 40. A breakout and a close above this level could signal the continuation of the uptrend.

You can see the coin prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN-Nour

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page