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.
Even though Bitcoin (BTC) faces several headwinds in the near term, it did not deter MicroStrategy from buying more coins. After the latest purchase of 301 Bitcoin, the company’s stash has risen to 130,000 Bitcoin. This shows that MicroStrategy and its executive chairman, Michael Saylor, remain bullish on the long-term prospects of Bitcoin.
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.
Buyers will have to push the price above the 20-week exponential moving average (EMA) ($20,100) to indicate that the sellers may be losing their grip. The BTC/USDT pair could then rise to the 50-day simple moving average (SMA) ($21,363). This level may again act as a stiff resistance but if bulls overcome this barrier, the pair could rally to $25,211.
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.
The bulls are attempting to start a relief rally which could pick up strength above $1,400. If this level is conquered, the ETH/USDT pair could rise to the 20-day EMA ($1,513). This level could be the real test for the bulls in the near term because a break above it could clear the path for a possible rally to the resistance line of the channel.
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.
The bulls will attempt to push the price above the 20-day EMA ($278) and challenge the resistance line of the channel. The 50-day SMA ($293) is placed just above the channel, hence the bears are expected to defend the level aggressively.
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.
If the bulls do not give up much ground from the current level, it will increase the possibility of a break above $0.41. The 20-day EMA ($0.36) has started to turn up and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. If the price breaks and sustains 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 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.
If the price continues lower and slips below the uptrend line, the ADA/USDT pair could drop to the pivotal level at $0.40. If bears sink the price below this support, the pair could start the next leg of the downtrend.
On the upside, if bulls push the price above the…
cointelegraph.com