BTC's Dip below $44K, Ricochet Effect Hits Major Altcoins

At the time of writing, Bitcoin is trading at $46,821 and is attempting to break the massive trendline rejecting us for the last one week.

The trend line has a bit of significance; if BTC can break above the trend line at about $46,200, this will portend positive vibes in the market and for most altcoins.

As long as Bitcoin is below the $49k mark, it is just at another lower high, and we have the lower low in place as well.

That would look like a confirmed reversal for a mega downside move.

The Bulls have to defend the major support around the 42k mark.

We could see BTC dip massively if the coin falls below this support. However, if the price rebounds off this support, Bitcoin is bound to retest the 50k mark.

Indicators

The MACD index moved back again to the negative side, showing that there could be a short-term negative momentum in the market.

The RSI index has moved around value = 50, which means that the price will remain on the same spot for the next period.

ETH/USD

At the time of writing, ETH is trading at 3408.21.

In the last 24 hours, Ether has experienced a pump and dump.

So we dipped to about 3390 and found support at about 3173.

Eever since, we have had quite a bit of organic buying back towards the upside (and this is quite a bullish sign for ETHUSD).

It must also be noted that we have broken quite a major resistance that was previously holding us back at about 3320.

That level had quite a bit of significance for ETH, it was the previous support.

Once we fell below it on the 10th of September, we started to retest the old support as resistance.

Ethereum looks quite bullish in the immediate short-term.

However, we are still getting rejected by the same trendline that we have been looking at on the channel for the last couple of days.

So you can see that the trendline has a bit of significance.

It has been rejecting ETH ever since the 9th of September.

Whenever we attempt to break above the trendline, we get rejected and pushed back down towards the downside.

Indicators

MACD index is in the negative space, though positive vibes bring more ambitions to the investing community about its short-term future.

The RSI index moved to value = 50, showing that the market will remain stable in the next few days, with a small probability of going down.

XRP/USD

XRP opened the day at 1.09546 and reached intraday high and low of 1.09932 and 1.084818, respectively.

The resistance that Ripple needs to break is at 1.13, and the support to hold is at 1.3.

Both these levels have quite a bit of a sign because we have been getting rejected by the resistance for the last seven days.

(since the 8th of September we have repeatedly been trying to break above it, and whenever we poke above it there is always a pushback towards the downside and we start to sell off towards the downside).

The major resistance that XRP needs to break above right now is about 1.13, and the support that it needs to hold is at 1.3.

This is the current consolidation range that XRP is going through.

There is quite a high probability that we put in a bottom at this level and have some rally back towards the upside.

XRP is currently printing a bullish signature right now by forming consecutive lower lows.

Hhowever, the RSI has been forming consecutive higher lows.

So we have about 3-4 drives of bullish divergence, and consequently, there is a high probability that XRP may consolidate for a day or two.

We are probably going to mount a rally back to the upside eventually.

Indicators

MACD index returned to the negative field, like many other cryptocurrencies, indicating a short-term correction before rebounding to reach higher price levels.

The RSI index moved around value = 47, indicating some level of stability.

BCH/USD

Bitcoin Cash (BCH) is currently trading at $635.54 after gaining +3.39% in the last 24 hours.

This indicates mild volatility, with the bulls gaining momentum to set higher lows.

It has been a Herculean challenge for BCH to move above the 700 marks with resistance at around the 650 marks, though the bulls look primed to break this resistance in the coming days.

Indicators

MACD index came back in the negative field, proving its correlation with the rest of the market.

The RSI index moved between values 45 and 50, indicating that the price will move on the same space but negatively.

LTC/USD

A few days ago, LTC broke above the previous resistance at 187, and the next target is 222.

Currently, LTC is trading at 178, which is the range we traded at a couple of weeks ago (from the 12th of August to the 3rd of September).

Nothing has changed with LTC since then, and the resistance that we need to break above is at 187, and the support that we need to hold is at 165.

The resistance has been rejecting us ever since the 13th of August.

When we try to break above it, we often get rejected.

Either within the 6-candle or the subsequent candle and upon getting rejected, we start to sell off towards the downside.

The 165 level has quite a bit of significance because it has been a major support for Litecoin.

Whenever we test this level for support, a few buys step in, giving us continuation back towards the upside.

Litecoin is still on an uptrend daily, and we are still forming consecutive higher highs and consecutive higher lows.

In terms of moving averages, we are still trading above most of the moving averages.

Indicators

MACD index returned in the negative lines, creating some pessimism in the market regarding the short-term future.

In contrast, the RSI index moved between values 47 and 50, depicting a stable short-term future with potential negative outcomes.

ADA/USD

At writing, ADA USD is currently trading at $2.3939 with an intraday dip of -0.88%.

The bears seem to have pulled back the price below the 2.47 mark.

Cardano is looking a bit sloppy right now, and we are just starting to roll down towards the downside.

It looks like we are coming to test the major level for support at about 2.32.

The level mentioned above has quite a bit of significance, having caught the bottom for ADA on quite a few occasions.

For the immediate short-term, we will probably test the level for support once again at about 2.32.

Looking at Bitcoin for the direction of the trend, BTC broke above the resistance at 46200, which is the expected channel that we just broke out from.

ADA needs to break above the 2.52; this will propel it to form a head and shoulder pattern formation.

Indicators

MACD index is in the negative field.

Like many other altcoins, this indicates that the market is still going through correction, after which it will be ready to take another boost and reach higher price levels.

The RSI index moved around value = 45, indicating that the price could pump further at higher levels, especially in the long term.

DOGE/USD

For several days, DOGEUSD has been trading below MAs, implying that the Bulls are not in a hurry to buy at this present rate.

With the Bulls' tepid willingness to buy, the only plausible thing is that the Bears will try to plummet the pair's price to 0.21 (which is below the major support).

When writing, DOGEUSD is trading at 0.2410000 with intraday high and low of 0.243000 and 0.23910000.

The RSI is presently in the negative zone.

This also implies that the Bears are pulling their weights and determined to ruffle feathers.

If the price of Doge surges above the 0.21 mark, then the Bulls will give a go at it and try to push the coin above the MA.

The possible outcome of this is that it will signal the end of the current market correction.

Indicators

MACD index is negative, creating dampened vibes in the market regarding the short-term future.

In contrast, the RSI index moved between values 40 and 42, depicting an unstable short-term future with little or no positive outcomes.

Correlation

• BTC/ETH : 0.83
• BTC/XRP : 0.74
• BTC/BCH : 0.72
• BTC/LTC : 0.62
• BTC/ADA : 0.63
• BTC/DOGE : 0.70

Bitcoins' inability to make a strong recovery in the past few days has had a ripple effect on most major altcoins.

if this persists, the total market cap could dip below the $2 trillion mark.

Key Notes for Today

• The Bulls have to defend BTC's major support around the 42k mark.
• If the price of Doge surges above the 0.21 mark, then the Bulls will give a go at it and try to push the coin above the moving average.
• Ethereum looks quite bullish in the immediate short-term.