Federal Reserve Chairman Jerome Powell warned that the central bank will continue to use the “tools forcefully” to bring down inflation, which is clos
Federal Reserve Chairman Jerome Powell warned that the central bank will continue to use the “tools forcefully” to bring down inflation, which is close to its highest level in 40 years. He cautioned that the restrictive policy may remain for some time and warned that it could “bring some pain to households and businesses.”
The United States equities markets reacted negatively to Powell’s comments with the Dow Jones Industrial Average dropping more than 600 points. The cryptocurrency markets also witnessed sharp selling with Bitcoin (BTC) and most altcoins threatening to break below their immediate support levels.
Along with a not-so-supportive macro environment, Bitcoin’s historical data for September also presents a negative picture. According to CoinGlass data, Bitcoin has witnessed an average decline of 6% in September and barring 2015 and 2016, the month has produced negative returns for investors between 2013 and 2021.
Could Bitcoin and major altcoins remain weak in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s shallow rebound off the support line of the ascending channel indicated that bulls are cautious at higher levels. The downsloping 20-day exponential moving average (EMA) ($22,249) and the relative strength index (RSI) in the negative territory, indicate that bears have the upper hand.
Strong selling has pulled the price below the ascending channel on Aug. 26. If bears sustain the price below $20,762, the selling could intensify and the BTC/USDT pair could drop to $18,900. This level may again act as a strong support but if it breaks, the decline could extend to the June 18 intraday low at $17,622.
This negative view will be invalidated in the near term if the price turns up from the current level and breaks above the 50-day simple moving average (SMA) ($22,414). Such a move will indicate that lower levels continue to attract buyers. The pair could then attempt a rally to the resistance line of the channel.
ETH/USDT
Buyers could not push Ether (ETH) above the 20-day EMA ($1,697) on Aug. 25, indicating that bears are defending this level with vigor.
The selling picked up momentum and the bears have pulled the price below the 50-day SMA ($1,588). A close below this support could sink the ETH/USDT pair to $1,500. If the price slips below this crucial support, the pair will complete a bearish head and shoulders pattern. The target objective of this setup is $1,050.
Contrary to this assumption, if the price rebounds off the $1,500 support, the bulls will again attempt to clear the overhead hurdle at $1,700. If they succeed, it will suggest that the pair could rise toward the overhead resistance at $2,000.
BNB/USDT
The bulls pushed BNB above the 20-day EMA ($300) on Aug. 25 but the long wick on the candlestick suggests that bears are selling at higher levels.
The price has turned down on Aug. 26 and the bears are attempting to sink the price below the immediate support at $275. If they succeed, the BNB/USDT pair could complete a bearish head and shoulders pattern. That could result in a decline to $240 and then to the pattern target at $212.
Conversely, if the price turns up and breaks above $308, it could catch the aggressive bears off guard. The pair could then rally to the overhead resistance of $338. If bulls clear this hurdle, the pair will complete a bullish inverse head and shoulders pattern.
XRP/USDT
The bulls pushed Ripple (XRP) above the moving averages on Aug. 26 but the long wick on the candlestick suggests strong selling at higher levels.
The price turned down sharply and the bears are attempting to sink the XRP/USDT pair below the immediate support at $0.33. If they succeed, the next stop could be the critical support at $0.30. A break and close below this level could indicate the resumption of the downtrend.
Alternatively, if the price rebounds off $0.30, it will suggest that bulls continue to buy at this level. That could increase the possibility that the pair may remain stuck between $0.30 and $0.39 for some more time.
ADA/USDT
Cardano’s (ADA) recovery turned down sharply from the 20-day EMA ($0.49) on Aug. 26, suggesting that the higher levels continue to attract strong selling by the bears.
The price could reach the immediate support at $0.43 and if that level also gives way, the next stop could be the crucial level at $0.40. The bulls successfully defended this support on two previous occasions, hence the level may again attract buying.
If the price rebounds off the current level or $0.40, the bulls will again try to clear the overhead hurdle at the moving averages. If they manage to do that, the ADA/USDT pair could rally to the downtrend line where the bears may mount…
cointelegraph.com