The Federal Reserve hiked rates by 75 basis points on Sept. 21 and Fed Chair Jerome Powell projected another 125 basis points increase before the end of the year. If that happens, it will take the benchmark rate to 4.4% by the end of the year, which is sharply higher than the June estimates of 3.8%. The Fed also intimated that it only expects rate cuts to be considered in 2024.
The expectation of higher rates pushed the 2-year Treasury to 4.1%, its highest level since 2007. This could attract several investors who are looking for safety in this uncertain macro environment. Higher rates are also likely to reduce the appeal of risky assets such as stocks and cryptocurrencies and may delay the start of a new uptrend.
Bitcoin and altcoins are trying to stabilize after the Fed’s announcement. Could they start a recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin plunged below the immediate support at $18,626 on Sept. 19 but the long tail on the candlestick shows strong buying at lower levels. The bulls again defended the level on Sept. 21, which is a positive sign.
If the price turns down from the 20-day EMA, the bears will again try to sink the pair below the strong support zone between $18,626 and $17,622. If they succeed, the pair may witness panic selling and could drop to $14,000.
ETH/USDT
Ether (ETH) has been declining in a descending channel pattern for the past few days. The price bounced off the support line of the channel on Sept. 19, indicating buying on dips.
If the price turns down from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. That could sink the price to the support line of the channel. If this support fails to hold up, the pair could plummet to $1,000.
BNB/USDT
BNB is correcting inside a descending channel pattern. The strong bounce off $258 is a positive sign as it indicates demand at lower levels.
If the price turns down from the resistance line, the BNB/USDT pair could again drop to $258. If this support cracks, the pair could slide to the support line of the channel.
The bulls will have to push and sustain the price above the channel to improve the prospects of a rally to the stiff overhead resistance at $338.
XRP/USDT
XRP broke and closed above the overhead resistance at $0.41 on Sept. 20 but the bulls could not build upon this strength. The bears pulled the price back into the range on Sept. 21.
The bears will have to sink the price below the moving averages to suggest that the pair may continue to oscillate inside the range for some more time.
ADA/USDT
Buyers are trying to sustain Cardano (ADA) above the uptrend line. The bulls tried to push the price higher on Sept. 21 but the long wick on the candlestick shows that bears are selling on intraday rallies.
On the upside, if bulls push the price above the 20-day EMA, the pair could rally to the downtrend line. Buyers will have to thrust the price above this resistance to gain the upper hand. The pair could then rise to $0.52 and thereafter to $0.60.
SOL/USDT
Solana (SOL) bounced off the immediate support at $30 but the bulls could not push the price above the 20-day EMA ($33). This indicates that bears are active at higher levels.
To invalidate this bullish view, bears will have to pull the price below $30. That could sink the pair to the important level at $26. If this support gives way, the pair could resume the downtrend.
DOGE/USDT
Dogecoin (DOGE) is getting squeezed between the 20-day EMA ($0.06) and the immediate support at $0.06. This suggests that the bulls are buying the dips but they continue to face strong resistance from the bears on every minor rally.
If the price turns down and breaks below the strong support at $0.06, it will indicate that the uncertainty has resolved in favor of the bears. The pair could then decline to the crucial support at $0.05.
Related: Crypto and stocks soften ahead of Fed rate hike, but XRP, ALGO and LDO look ‘interesting’
DOT/USDT
Polkadot (DOT) has been consolidating between $6 and $10 for the past several days. The price has slipped to the critical support at $6, which had held successfully in mid-July.
Alternatively, if the price rebounds off the current level and breaks above the 20-day EMA, it will suggest accumulation at lower levels. The pair could then rise to the 50-day SMA ($7.69). A break above this level could clear the path for a possible rally to $10.
MATIC/USDT
Polygon (MATIC) has been trading inside a large range between $0.72 and $1.05 for the past several days. The price has currently reached the support of the range.
On the contrary, if the price rises above the moving averages, it will suggest strong demand at lower levels. That could keep the pair stuck inside the range for a few more days.
SHIB/USDT
Shiba Inu (SHIB) bounced off the immediate support at $0.000010 on Sept. 18 but the bears stalled the recovery at $0.000011. The bears will again attempt to sink the price below the support at $0.000010.
If bulls want to avert this collapse, they will have to quickly push the price above the 20-day EMA. The pair could then rise to $0.000014 where the bears may again mount a stiff resistance. If the price turns down from this level, the pair may consolidate between $0.000010 and $0.000014 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 move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
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