Key points:
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Bitcoin is likely to witness wild moves following the Fed’s rate decision, but the price may remain inside the large $107,000 to $124,474 range for some more time.
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Several altcoins, except BNB, have pulled back, indicating that traders are taking risk off the table before today’s FOMC.
Bitcoin (BTC) is facing selling near $117,500, but a positive sign is that the bulls are trying to maintain the price above $115,500. The cryptocurrency markets could witness heightened volatility after the Federal Open Market Committee’s interest rate decision on Wednesday.
The CME FedWatch tool shows a 94% probability of a 25-bps rate cut, with the other 6% anticipating a 50-bps rate cut. Analysts are divided about BTC’s near-term price action. Crypto analyst Jelle said in a post on X that BTC could gradually grind higher toward the all-time high. On the other hand, crypto analyst Ted said in a post on X that BTC could dump to $104,000 or even to $92,000 before rallying to a new all-time high.
Fundstrat co-founder and BitMine Chairman Tom Lee said on CNBC that BTC and Ether (ETH) could “make a monster move in the next three months…huge.” He said the Fed’s reduction of rates for the first time after a long pause, along with strong seasonality, could drive the crypto rally in BTC and ETH.
What are the crucial support and resistance levels to watch out for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC has been oscillating between the 50-day simple moving average (SMA) ($114,320) and the overhead resistance at $117,500 for the past few days.
The upsloping 20-day exponential moving average (EMA) ($113,919) and the relative strength index (RSI) in the positive territory increase the likelihood of a break above $117,500. If that happens, the BTC/USDT pair could ascend to $120,000 and later to $124,474.
This optimistic view could be negated in the near term if the price skids below the 20-day EMA. That suggests the Bitcoin price could remain inside the $107,000 to $117,500 range for a while longer. The bears will be back in the driver’s seat on a close below $107,000.
Ether price prediction
Ether has pulled back to the 20-day EMA ($4,450), which is likely to act as a strong support.
If the price turns up sharply from the 20-day EMA, it signals solid buying on dips. The bulls will then try to propel the ETH/USDT pair above the $4,770 to $4,957 overhead resistance zone. If they can pull it off, the Ether price could skyrocket to $5,500. There is psychological resistance at $5,000, but it is likely to be crossed.
Conversely, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($4,288) and then $4,060. The bears will gain the upper hand on a close below the $4,060 support.
XRP price prediction
Buyers are trying to maintain XRP (XRP) above the moving averages but are struggling to start a solid bounce.
Sellers will try to strengthen their position by pulling the price below the 20-day EMA ($2.97). If they manage to do that, the XRP/USDT pair could slump to the solid support at $2.73. Buyers are expected to fiercely defend the $2.73 level because a close below it will complete a descending triangle pattern. The XRP price could then plunge to $2.20.
Alternatively, if the price turns up from the current level and rises above $3.20, it suggests that the bulls are back in control. The pair may then march toward $3.40.
BNB price prediction
BNB (BNB) continued its march higher toward the psychological level of $1,000, indicating that the bulls are firmly in control.
Sellers will attempt to halt the up move as the price nears the $1,000 level. On the way down, the bears will have to yank the BNB price below the 20-day EMA ($897) to weaken the bullish momentum. If they do that, the BNB/USDT pair could tumble to the 50-day SMA ($847).
Instead, if buyers do not allow the price to break below the 20-day EMA, it suggests solid demand at lower levels. That enhances the prospects of the resumption of the uptrend toward $1,090.
Solana price prediction
Solana’s (SOL) shallow pullback suggests that the bulls are not hurrying to the exit as they anticipate another leg higher.
The 20-day EMA ($220) is the critical support to watch out for on the downside. If the price turns up from the current level or the uptrend line, it signals a positive sentiment. That increases the possibility of a rally to $260, where the bears are expected to step in.
Contrarily, a break and close below the 20-day EMA indicates that the bulls are closing their positions. The SOL/USDT pair may then fall to the 50-day SMA ($197). Buyers will try to…
cointelegraph.com