The Federal Reserve raised interest rates by 75 basis points on September 21 and Fed Chair Jerome Powell expected another 125 basis points increase before the end of the year. If that happens, the benchmark rate will rise to 4.4% by the end of the year, sharply higher than the June estimate of 3.8%. The Fed has also hinted that it only expects to consider interest rate cuts in 2024.
The expectation of higher rates has pushed the two-year Treasury to 4.1%, its highest level since 2007. This may attract many investors looking for safety in this uncertain macro environment. Higher rates are also likely to reduce the attractiveness of risky assets such as stocks and cryptocurrencies and may delay the start of a new upward trend.
Although Bitcoin (BTC) faces several headwinds in the near term, this has not prevented MicroStrategy from buying more coins. After the last purchase of 301 Bitcoin, the company’s stock rose to 130,000 Bitcoin. This shows that MicroStrategy and its CEO, Michael Saylor, remain bullish on Bitcoin’s long-term prospects.
Bitcoin and altcoins are trying to stabilize after the Federal Reserve’s announcement. Can they begin to recover? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin dropped below the immediate support at $18,626 on September 19, but the long tail on the candlestick is showing strong buying at the lower levels. Bulls once again defended the level on September 21, which is a positive sign.
Buyers will have to push the price above the 20-week exponential moving average ($20,100) to signal that sellers may lose their grip. The BTC/USDT pair could then rise to the 50-day simple moving average (SMA) ($21,363). This level may once again act as a severe resistance but if the bulls overcome this barrier, the pair could rise to $25211.
If the price drops from the 20-day moving average, the bears will once again attempt to dump the pair below the strong support zone between $18,626 and $17,622. If they succeed, the pair could witness panic selling and could drop to $14,000.
ETH / USDT
Ether (ETH) is falling in a bearish channel pattern for the past few days. The price bounced off the channel’s support line on September 19, indicating buying on dips.
The bulls are trying to start a relief rally, which could gain strength above $1,400. If this level opens, ETH/USDT could rise to the 20-day moving average ($1,513). This level may be the real test for the bulls in the near term as a break above it could pave the way for a potential rally to the channel’s resistance line.
If the price breaks below the 20-day moving average, it will indicate that sentiment is still negative and that traders are selling on rallies. This may cause the price to drop to the channel support line. If this support fails to hold, the pair could drop to $1,000.
BNB / USDT
BNB is correcting inside the bearish channel pattern. A strong bounce off $258 is a positive sign as it indicates demand at lower levels.
The bulls will attempt to push the price above the 20-day moving average ($278) and challenge the channel’s resistance line. The 50 day simple moving average ($293) is placed just above the channel; Hence, bears are expected to defend the level aggressively.
If the price breaks down from the resistance line, the BNB/USDT pair may fall again to $258. If this support is broken, the pair may slip to the channel support line.
The bulls will have to push and hold the price above the channel to improve the odds for a rally to the strong resistance at $338.
XRP / USDT
Ripple (XRP) broke out and closed above the upper resistance at $0.41 on September 20 but the bulls were unable to build on this strength. Bears pulled the price back into the range on September 21st.
If the bulls do not give up a significant level from the current level, it will increase the possibility of a breakout above $0.41. The 20-day EMA ($0.36) started to rise and the RSI was in positive territory, indicating that the path of least resistance is to the upside. If the price breaks and continues above $0.41, the XRP/USDT pair could reach $0.46 and then $0.52.
The bears will have to sink the price below the moving averages to indicate that the pair may continue to fluctuate within the range for some time.
ADA / USDT
Buyers are trying to keep Cardano (ADA) above the rising trend line. The bulls attempted to push the price higher on September 21st, but the long wick on the candle shows that the bears are selling on intraday rallies.
If the price continues declining and falls below the uptrend line, the ADA/USDT may drop to the pivot level at $0.40. If the bears cut the price below this support, the pair may start the next phase of the downtrend.
On the upside, if the bulls push the price above the 20-day moving average, the pair could rise to the downtrend line. Buyers will have to push the price above this resistance to gain the upper hand. The pair can then rise to $0.52 and later to $0.60.
SOL / USDT
Solana (SOL) bounced off the immediate support at $30 but the bulls were unable to push the price above the 20-day moving average ($33). This indicates that the bears are active at higher levels.
The simple positive is that the bulls have not given up and are once again trying to push the price above the 20 day moving average. If they manage to do so, the SOL/USDT pair could rise to the 50-day simple moving average ($36). The bears may try to defend the area between the 50-day SMA and $39 because if they fail to do so, the pair could rise to $48.
To negate this uptrend, the bears will have to pull the price back below $30. This may bring the pair down to the important level of $26. If this support recedes, the pair may resume the downtrend.
DOGE / USDT
Dogecoin (DOGE) is squeezed between the 20-day exponential moving average ($0.06) and the immediate support at $0.06. This indicates that the bulls are buying the dips but continue to encounter strong resistance from the bears on every slight rally.
If the price breaks above the 20-day moving average, this will signal a return of buyers. The DOGE/USDT pair could then rise to the 50-day SMA ($0.07) as the bears will once again attempt to halt the recovery. The bulls will have to overcome this hurdle to open the doors to a potential rally to $0.09.
If the price drops and breaks below the strong support at $0.06, it will signal that the uncertainty is over in favor of the bears. After that, the pair could fall back to the crucial support level at $0.05.
Related: Cryptocurrencies and Stocks Slip Ahead of Fed Rate Raise, But XRP, ALGO and LDO Look ‘Interesting’
DOT / USDT
Polkadot (DOT) has been merging between $6 and $10 over the past several days. The price dropped to the crucial support level at $6, which was successfully held in mid-July.
Buyers are expected to defend the $6 level aggressively as a breakout and a close below could signal a resumption of the downtrend. The DOT/USDT pair may then fall back to the next major support level at $4.
Alternatively, if the price bounces off the current level and breaks above the 20-day moving average, it will suggest a build-up at the lower levels. The pair may then rise to the 50-day simple moving average ($7.69). A break above this level could pave the way for a potential rally to $10.
Matic / USDT
Polygon (MATIC) has been trading within a large range between $0.72 and $1.05 over the past several days. The price has now reached range support.
If the price bounces below $0.72, the pair may reach the 20-day moving average. This is an important level to monitor in the short term. If the price falls from this resistance, the probability of a break below $0.72 increases. The MATIC/USDT pair could then fall to $0.62 and later to $0.52.
Conversely, if the price rises above the moving averages, this will indicate strong demand at lower levels. This pair may remain stuck within the range for a few more days.
SHIP / USDT
Shiba Inu (SHIB) rebounded from the immediate support at $0.000010 on Sep 18 but the bears halted the recovery at $0.000011. The bears will once again attempt to sink the price below the $0.000010 support level.
The 20-day slope EMA ($0.000012) and the RSI are in negative territory, indicating that the bears are in command. If the price slips and continues below $0.000010, SHIB/USDT could extend its decline to the vital support level at $0.000007.
If the bulls want to avoid this crash, they will have to quickly push the price above the 20 day moving average. The pair could then rise to $0.000014 as the bears may once again climb up to a tight resistance. If the price drops below this level, the pair may consolidate between $0.000010 and $0.00014 for some time.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your research when making a decision.
Market data is provided by HitBTC exchange.
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