The United States equities markets and the crypto markets are likely to remain volatile in the near term because traders remain nervous about the size
The United States equities markets and the crypto markets are likely to remain volatile in the near term because traders remain nervous about the size of the next Federal Reserve rate hike on Sept. 20 and Sept. 21. While the majority favors a 75 basis point rate hike, according to the CME FedWatch Tool, some analysts expect the Fed to hike rates by 100 basis points, the first such instance since the early 1980s.
Many expect Bitcoin (BTC) to continue its slide and drop below the June low in the future. Although anything is possible in the markets, many times, the markets do not oblige the majority. If the Fed does not surprise the markets, traders who may be cautious and sitting on the sidelines could jump right back in, resulting in a brief relief recovery.
Bear markets offer an opportunity for investors to accumulate for the long term. It is futile to catch the bottom, hence traders may be on the lookout to start accumulating during periods of extreme pessimism. A strong stomach is needed to tide over the volatility but the ones who do that are likely to benefit when the next bull run begins.
Could Bitcoin and altcoins stage a turnaround or is a deeper decline possible? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has been in a strong downtrend for several months. Buyers started a recovery from the June low at $17,622 and pushed the price above the 200-week simple moving average (SMA) but they could not sustain the higher levels.
The bulls again tried to push the price above the 200-week SMA last week but the bears held their ground. This shows that bears are defending the 200-week SMA with vigor. Hence, this level becomes a key resistance to watch for on the upside.
On the downside, the bulls are expected to aggressively defend the support at $17,622. The first sign of strength will be a break and close above $20,000. That will suggest a range-bound action for the BTC/USDT pair between $17,622 and $25,211.
A trend change will be signaled after buyers propel the price above $25,211. The pair could then rally to $32,000.
Conversely, if bears sink and sustain the price below $17,622, it could signal the resumption of the downtrend. The pair could then decline to $14,000.
ETH/USDT
The bears have been defending the 20-week exponential moving average ($1,732) for the past few weeks. This suggests that the sentiment in Ether (ETH) remains bearish and traders are selling on rallies.
The ETH/USDT pair turned down sharply from the 20-week EMA last week and has reached the 200-week SMA ($1,283). Buyers are expected to defend this level vigorously.
The bulls will have to push and sustain the price above the 20-week EMA to indicate that the bears may be losing their grip. A potential trend change could be signaled on a break above $2,030. Until then, the bears are likely to sell on every rally.
If the price breaks below the 200-week SMA, the selling could intensify and the bears will try to pull the price to the June low of $881. This is an important level for the bulls to defend because a break below it could result in panic selling.
BNB/USDT
BNB is one of the outperformers among the major cryptocurrencies as it is trading well above its 200-week SMA ($175). Buyers pushed the price above the 20-week EMA ($295) but they could not build upon this strength. The bears stalled the recovery at $338 and pulled the price back below the 20-week EMA.
Since then, the bears have thwarted several attempts by the bulls to drive the price back above the 20-week EMA. This indicates that bears are selling the rallies to the 20-week EMA. The bears will attempt to sink the BNB/USDT pair to the 200-week SMA, which is likely to attract strong buying by the bulls.
The first sign of strength will be a break above the 20-week EMA. That could clear the path for a retest of $338. The bulls will have to clear this overhead hurdle to suggest the start of a new up-move.
XRP/USDT
XRP has been consolidating in a downtrend for the past few weeks. Buyers attempted to push the price above the resistance of the range at $0.41 last week but the bears successfully defended the level.
The sellers will try to pull the price to the support at $0.30. This remains the important level to keep an eye on because if bears sink the price below $0.30, the XRP/USDT pair could begin the next leg of the downtrend. The pair could then decline to $0.24 and later to $0.17.
The 20-week EMA is flattening out, indicating that the selling pressure could be weakening. If the price rebounds off $0.30, the pair could extend its stay inside the range for a few more days. Buyers will have to push and sustain the price above the 200-week SMA ($0.48) to indicate that the pair may have bottomed out.
ADA/USDT
Cardano (ADA) has been trading…
cointelegraph.com