Bitcoin and altcoins lose more ground after comments from the Federal Reserve suggest that the regime of interest rate hikes could continue into 2024.
Federal Reserve Chair Jerome Powell spoke today and in his Jackson Hole speech he cautioned that inflation remains too high and that the central bank remains open to raising rates further if needed. The remarks by Powell strengthen the narrative that interest rates are likely to remain higher for longer.
However, a positive sign is that after a brief sell-off, the United States equities markets have recovered from their intraday lows. With the event having passed without any major price movement, traders are back to guessing as to what could move the markets next.
Pantera Capital believes that Bitcoin’s (BTC) price action will continue to follow its previous halving cycles. If that happens, Bitcoin could rise to $35,000 by April 2024 when the next halving is expected to occur. After that, Bitcoin could rally sharply and climb to $148,000.
Will bears maintain their selling pressure and pull the price below the respective supports in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin once again turned down from the overhead resistance at $26,833 on Aug. 23, indicating that the bears continue to sell on rallies. That has kept the price stuck inside the range between $26,833 and $24,800.
A tight consolidation near the support of a range is a bearish sign as it shows a lack of aggressive buying by the bulls. The downsloping 20-day exponential moving average ($27,463) and the relative strength index (RSI) in the oversold territory indicate that bears are in command.
If the price plummets below $24,800, it could hit the stops of several traders. That may start a long liquidation, which could plunge the BTC/USDT pair to the pivotal support at $20,000.
The first sign of strength will be close above the 20-day EMA. That could open the doors for a possible rally to the 50-day simple moving average ($29,055).
Ether price analysis
The bulls nudged Ether (ETH) above the overhead resistance of $1,700 on Aug. 23 but could not sustain the higher levels. This shows that the bears are guarding the $1,700 level with vigor.
The downsloping moving averages and the RSI in the oversold territory indicate that the bears remain in control. Sellers will try to yank the price below the $1,626 to $1,550 zone. If they manage to do that, the ETH/USDT pair could start a downward move toward $1,368.
Meanwhile, the bulls are likely to have other plans. They will fiercely defend the support zone and try to propel the price above the 20-day EMA ($1,737). If they succeed, it will suggest that the pair may oscillate inside the large range between $1,626 and $2,000 for a few more days.
BNB price analysis
BNB’s (BNB) recovery hit a roadblock at the breakdown level of $220. This suggests that the bears are trying to flip the level into resistance.
The bears will try to pull the price to the psychological support at $200. This is an important level for the bulls to defend because if it cracks, the BNB/USDT pair could plummet to the next major support at $183.
If buyers want to prevent the decline, they will have to quickly push the price back above the 20-day EMA ($225). That could start a rally to the resistance line. This level may again attract strong selling by the bears.
XRP price analysis
XRP’s (XRP) bounce off the $0.50 support could not even reach the overhead resistance at $0.56, indicating that demand dries up at higher levels.
The bears will try to strengthen their position by pulling the price below the $0.50 support. If they manage to do that, the XRP/USDT pair could start a downhill slide toward the next major support at $0.41. Buyers are expected to aggressively buy the dips to this level.
On the upside, the bulls will have to drive the price above the 20-day EMA ($0.56) to indicate that the bears may be losing their grip. That could start a relief rally to the 50-day SMA ($0.63).
Cardano price analysis
The bulls successfully defended the $0.24 support in Cardano (ADA) but are struggling to overcome the obstacle at $0.28. This suggests that the bears are selling on every minor rally.
The bears will try to sink the price to the support of the range at $0.24. A strong bounce off this level will suggest that the ADA/USDT pair may extend its stay inside the $0.24 to $0.28 range for some more time.
If bears tug the price below $0.24, it will signal the resumption of the downtrend. The pair may first descend to $0.22 and thereafter to $0.20. Alternatively, a break and close above the range could start a…
cointelegraph.com