Bitcoin and select altcoins are attempting to make a comeback as traders expect the Fed to hold rates steady
Bitcoin and select altcoins are attempting to make a comeback as traders expect the Fed to hold rates steady during their meeting this week.
The failure of the bears to sink Bitcoin’s (BTC) price below $25,000-support ignited buying interest last week. The positive momentum picked up further at the start of the new week and buyers are trying to sustain Bitcoin’s price above $27,000.
Market participants seem to be buoyant on expectations that the Federal Reserve will not hike rates this year. The CME FedWatch Tool shows a 58% probability that the rates will remain at the current levels even in the December meeting.
That could be one of the reasons why the strength in the United States dollar index (DXY) has not adversely impacted the price of Bitcoin. However, traders need to be careful as the last ten days in September are known to favor the bears. According to the Carson Group, the S&P 500 Index (SPX) has been positive on average only for two days between Sep. 20 and 30 since 1950.
Could Bitcoin and select altcoins extend their recovery further or will bears pull the price lower? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index broke above the moving averages on Sep. 14 but the bulls could not keep up the momentum and clear the overhead hurdle at the downtrend line.
The bears sold aggressively at the downtrend line and pulled the price back below the moving averages on Sep. 15. Sellers will try to further strengthen their position by pulling the price below the next support at 4,030. If they do that, it will open the doors for a potential retest of the vital support at 4,325.
If bulls want to gain the upper hand, they will have to quickly drive the price above the downtrend line. There is a minor resistance at 4,542 but if this level is crossed, the index could sprint toward 4,607.
U.S. dollar index price analysis
The U.S. dollar index has continued to grind higher in the past few days but it is likely to face stiff resistance at 106.
If buyers do not allow the price to dip below the 20-day exponential moving average (104), it will enhance the prospects of a rally above 106. If that happens, the index could pick up momentum and soar to 108.
Alternatively, if the price turns down sharply from 106, it will suggest that bears are defending this level aggressively. A drop below the 20-day EMA could sink the price to the 50-day simple removing average (102). That could keep the price stuck between 101 and 106 for some more time.
Bitcoin price analysis
Bitcoin has maintained above the 20-day EMA ($26,394) since Sep. 14, indicating that the bulls have flipped the level into support. Buyers are trying to strengthen their position further by pushing the price above the 50-day SMA ($27,255).
The bears are expected to pose a strong challenge in the zone between the 50-day SMA and the overhead resistance at $28,143. If the price turns down sharply from this zone, it will indicate that the BTC/USDT pair may stay range-bound between $24,800 and $28,143 for a few days.
On the other hand, if bulls drive the price above $28,143, it will clear the path for $30,000 and $31,000 as the next targets.
Overall, time is running out for the bears. If they want to regain control, they will have to quickly yank the price back below the 20-day EMA.
Ether price analysis
After struggling near the 20-day EMA ($1,639) for the past few days, the bulls succeeded in pushing Ether (ETH) above the overhead resistance on Sep. 18.
The 20-day EMA is flattening out and the RSI is near the midpoint, indicating that the bulls are on a comeback. If buyers sustain the price above the 20-day EMA, the ETH/USDT pair could first rise to the 50-day SMA ($1,712) and thereafter to $1,750. A break above this level will signal a short-term double bottom. The pattern target of this bullish setup is $1,959.
However, the bears are likely to have other plans. They will try to tug the price back below the 20-day EMA and trap the aggressive bulls. A break below $1,600 could start a downward move toward presumably strong support at $1,531.
BNB price analysis
BNB (BNB) rose above the 20-day EMA ($215) on Sep. 17, indicating that the bearish momentum is weakening. The price could next reach the 50-day SMA ($224).
The bears are likely to offer stiff resistance in the zone between the 50-day SMA and $235. If the price turns down from this zone, it will signal that the BNB/USDT pair could remain range-bound between $200 and $235 for a while. The flattish 20-day EMA and the RSI near the midpoint also suggest a consolidation in the near term.
Instead, if the bears sink the price below the 20-day EMA, the pair could again retest the vital…
cointelegraph.com
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