September monthly overview

At the beginning of the month I commented that September is a historically bearish month for the crypto market and this pattern has been repeated in the largest capitalization tokens such as $BTC closing -6% and $ETH closing -16%. But this situation has been very different for other tokens that have had a very positive monthly result, so I thought I would do a review of the top tokens ahead of the start of October, which is historically a bullish month for the market.

First I’d like to start with $BTC, since being the largest capitalization asset it is the one that weights the most in the overall result.

In a month shaken by rising interest rates in the US and Europe, $BTC closes with a result of -6%, but for the moment it continues to maintain that support zone it marked during the summer. This leaves us with a situation that continues to respect the range created between the support and the downtrend line that draw a descending triangle.

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This descending triangle is close to exhaustion, but has not yet generated a breakout in either direction. In the event that it were to break to the downside, the most determining factor would be the RSI situation, since if a lower low is also being generated in the indicator (marked in the image) it is likely that the breakout will be direct and take us to $14k-$12k prices.

If on the other hand we see this triangle break to the upside, the first resistance can be found at $22.5k, which is the area to beat to start seeing higher highs in this support zone.

One of the featured tokens this month in $XRP with a cumulative +33%. $XRP we analyzed last week and we also have a video from our colleague @Adrian Sanchez explaining the fundamental reasons behind this move. I leave you both links below:

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As I commented in last week’s article, the resistance at $0.55 has bounced the price and we continue to keep an eye on the $0.40 area which can act as support in the event of a full breakout of the trend line.

Another of the tokens that have closed September with a good result is $ALGO, the Algorand token closes the month with +19% after the rebound it has made in the last week from the resistance at $0.40.

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After the breakout of the short-term resistance at $0.33 which it confirmed on day 20-21, it generated bullish momentum which took it to the next resistance zone at $0.40. These two zones are very relevant for the price movement, the $0.33 can act as support in the short term, which could start to leave higher lows in this support zone. The resistance at $0.40 has already been pierced, which means that many of the limit orders that were placed at those prices are already filled, increasing the chances of a breakout in the event of a resistance retest. If we see highs above this resistance we could be seeing the start of an upward movement, but as long as it continues to be respected, the current downtrend will continue.

Finally, another of the assets that I want to highlight despite the fact that its monthly result has not been so striking is $CHZ, the Chiliz token closes the month with +7% but it is one of those tokens that begins to leave highs and lows rising on your daily chart.

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With a fairly distant macro support zone ($0.10), it generated a higher low at $0.18, which makes it short-term support for now. Despite this bullish trend that is forming with this sequence of higher highs and higher lows, the long-term trend remains bearish as long as the resistance area of $0.33 continues to be respected, which is the area to beat to end this trend.

Currently the situation of the RSI that begins to generate bearish divergences suggests that we will see a rejection from the current area in search of a consolidation to the support of $0.18 or even $0.14.

Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The Belobaba Crypto Fund team only shows our analysis and investment tools, and how they help us in our operations when making decisions.