Analysts attribute the slump in Bitcoin (BTC) on September 7th to the liquidation of over-indebted positions. According to Bybt data, long positions worth approximately $ 3.68 billion have been liquidated in the Bitcoin options market in the past 24 hours.

On-chain monitoring resource Whalemap said the decline was mainly due to sales by whales who recently bought their bitcoins, rather than the HODLers. Separately, analyst Willy Woo also said:

“Leverage markets sold out, but investor purchases became even stronger.”

Every bull market has its share of corrections where weaker hands are shaken out and stronger hands solidify their position. Therefore, if investors believe in the long-term story, they shouldn’t let the setbacks put them off.

Daily performance of the cryptocurrency market. Source: Coin360

A new report from Standard Chartered’s cryptocurrency research team predicts that Bitcoin will hit $ 100,000 in “late 2021 or early 2022” and $ 175,000 in the long term. The analysts also have a positive view of Ether (ETH) and rate it “structurally” between 26,000 and 35,000 US dollars.

Is the correction over for Bitcoin and Altcoins or could there be another leg down? Let’s check out the top 10 cryptocurrency charts to find out.

BTC / USDT

Bitcoin experienced tremendous volatility on September 7th as it fell from an intraday high of $ 52,920 to an intraday low of $ 42,843.05. Strong buying at lower levels ultimately led to a strong recovery, as can be seen from the long tail of the daily candle.

BTC / USDT daily chart. Source: TradingView

Today the bulls held back another attempt by the bears to extend the correction by pushing the price below the 50-day simple moving average ($ 44,391). This suggests that traders are aggressively defending the zone between the 50-day SMA and the breakout level at $ 42,451.67.

If the zone holds, the bulls will attempt to push the price above the 20-day exponential moving average ($ 48,216). If that succeeds, the BTC / USDT pair could climb back to $ 52,920, but the bears are unlikely to give up easily.

The relative strength index (RSI) has fallen below 47 and the 20-day EMA has started falling, suggesting the bears have made a strong comeback. If the price drops off the 20-day EMA, the bears will try again to lower the pair below $ 42,451.67. If so, the pair could enter a deeper correctional phase.

ETH / USDT

Ether’s failure to rise and hold above $ 4,000 may have resulted in aggressive profit booking among short-term traders. Selling intensified after falling below the immediate support at $ 3,705.05.

ETH / USDT daily chart. Source: TradingView

The bulls were unable to halt the decline in the 20-day EMA ($ 3,486), which resulted in a fall to the critical support at $ 3,000. This level attracted strong buying and the ETH / USDT pair saw a strong rebound, as evidenced by the long tail of the daily candle.

Although the bulls pushed the pair above the 20-day EMA today, they were unable to hold the price above it. This shows that bears sell in rallies. The flat 20-day EMA and the RSI near the middle point to range-bound action for the next few days.

ADA / USDT

Vertical rallies typically follow waterfall declines as traders rush to exit, and that’s what happened in Cardano (ADA) on September 7th The Bulls.

ADA / USDT daily chart. Source: TradingView

As the decline broke below the 20-day EMA ($ 2.62) it could have triggered multiple stops. As a result, the ADA / USDT pair may have crashed to the 50-day SMA ($ 2.03). The long tail of the daily candle shows aggressive buying at lower levels.

If the bulls fail to push and hold the price above the 20-day EMA, the bears will likely make another attempt to bring the price below the 50-day SMA. If they do, it will signal a turnaround in which rallies are likely to be sold.

Alternatively, if buyers successfully defend the 50-day SMA, the pair could see consolidation over the next few days.

BNB / USDT

Binance Coin (BNB) moved down from the overhead resistance at $ 518.90 on September 7, breaking below the moving averages. Although the bulls were defending the 50-day SMA ($ 399) on a closing basis, failure to push and hold the price above $ 433 could result in further selling.

BNB / USDT daily chart. Source: TradingView

The 20-day EMA ($ 458) has started falling and the RSI has slipped into negative territory, suggesting that the bears have the upper hand. You will likely sell on relief rallies to the 20-day EMA.

If the price turns down and breaks below the 50-day SMA, the BNB / USDT pair could fall to the nearest support at $ 340. Such a move could keep the pair in a range between $ 340 and $ 433 for a few days.

XRP / USDT

XRP rebounded to close above the overhead resistance at $ 1.35 on September 6, but the breakout proved to be a bull trap. The bears sold aggressively, dragging the price towards the 50-day SMA ($ 0.98).

XRP / USDT daily chart. Source: TradingView

The long tail on September 7th and today’s candlesticks show that the bulls are trying to defend the 50-day SMA. If the price holds above $ 1.05, buyers will seek to push the XRP / USDT pair above the 20-day EMA ($ 1.18).

If they do, the pair could consolidate between $ 1.05 and $ 1.35 for a few days. On the contrary, if bears keep the price below $ 1.05, the likelihood of a break below the 50-day SMA increases.

SOL / USDT

Solana (SOL) rose to a new all-time high of $ 198 on September 8, but higher levels attracted profit bookings. The bears pulled the price down, but the long tail of the daily candle is showing strong buying near the 50% Fibonacci retracement level at $ 130.84.

SOL / USDT daily chart. Source: TradingView

After the strong rebound on September 7th, the SOL / USDT pair is seeing renewed selling today. If bears hold the price below the 38.2% Fibonacci retracement level at $ 146.10, the pair could fall to the 20-day EMA ($ 117).

If price bounces off this level, the pair may stay in the range for a few days before the next trend move begins.

Alternatively, if the price rises from current levels or rebounds from $ 146.10, the bulls will try again to push the pair towards $ 195.48. A breakout and a close above this level can mark the next stage of the uptrend.

DOGE / USDT

Dogecoin (DOGE) failed to gain momentum after breaking out of the falling wedge pattern. The price slid below both moving averages on September 7th, suggesting strong selling by traders.

DOGE / USDT daily chart. Source: TradingView

The DOGE / USDT pair fell to the USD 0.21 support where buyers intervened. This set in a recovery, as can be seen from the long tail of the day candle. The RSI has fallen into negative territory and the 20-day EMA has started falling, suggesting that the bears have the upper hand.

If the bulls fail to push the price above the 20-day EMA ($ 0.28), the pair could see another round of selling. A break below $ 0.21 could challenge critical support at $ 0.15. The bulls will have to push the price above $ 0.32 to signal a comeback.

DOT / USDT

Polkadot (DOT) broke below the rising wedge pattern on September 7th. Aggressive selling pushed the price below the breakout level of $ 28.60, causing a fall to the 50-day SMA ($ 22.77).

DOT / USDT daily chart. Source: TradingView

The DOT / USDT pair bounced back sharply from the 50-day SMA, as evidenced by the long tail of the daily candle. The bulls are currently trying to push the price above the overhead resistance at $ 28.60. If the price stays above this level, buyers will try again to continue the uptrend.

Conversely, if the price drops from current levels, it suggests that sentiment has turned negative and traders are closing their positions on rallies. The bears will then try again to pull the price below the 50-day SMA. When that happens, it suggests that the break above $ 28.60 was a bull trap.

Related: Sell ​​or hodln? How to Prepare for the End of the Bull Run, Part 2

UNI / USDT

Uniswap’s (UNI) area-bound promotion between $ 25 and $ 31.41 broke down on September 7th. The bulls attempted to rebound today and push the price back above $ 25 but failed.

UNI / USDT daily chart. Source: TradingView

The 20-day EMA ($ 27) has fallen and the RSI has fallen below 38, suggesting that the bears have the upper hand. They are trying to bring the price below the September 7th intraday low of $ 21.

If successful, the UNI / USDT pair could fall to the pattern target at $ 18.69. If the price recovers from this support, the pair could trade between $ 18.69 and $ 23.45 for a few days. The bulls will have to push and hold the price above $ 25 to signal a comeback.

BCH / USDT

Bitcoin Cash (BCH) fell from the overhead resistance zone at $ 806.90 to $ 864.30 on September 7th. This suggests that the bears are aggressively defending the overhead zone. The altcoin could now remain in the large range between $ 383.50 and $ 864.30 for a few more days.

BCH / USDT daily chart. Source: TradingView

The flattening 20-day EMA (673) and the RSI near the middle point to a balance between supply and demand. If the price rebounds from $ 596, the bulls will try again to push the price above the overhead zone.

If the price deviates from the zone, the BCH / USDT pair could consolidate between $ 596 and $ 684.30 for a few days. A breakout and close above the overhead zone suggests the possible start of a new uptrend, while a break below USD 596 could open the doors for a further decline to USD 500.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement carries risks. You should do your own research when making a decision.

Market data is provided by HitBTC Exchange.

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