S&P 500 and Nasdaq Composite Index Investors Recognize That The Federal Reserve Must Continue Aggressive Monetary Policy To Curb Inflation, Which Could Lead To A US Recession Concerned, it posted its worst weekly performance since June.
Bitcoin (BTC) has been closely correlated with the S&P 500 and is trending down more than 9% this week. Goldman Sachs strategist Sharon Bell has warned that aggressive rate hikes could trigger a 26% drop in the S&P 500, so if this correlation continues, it could hurt crypto markets further. There is a nature.
While most expect the Fed to raise rates by 75 basis points at its next meeting on Sept. 20-21, the FedWatch tool puts a 18% chance of a 100 basis point hike. is shown. This uncertainty can put traders at risk and increase short-term volatility.
Some cryptocurrencies could attract buyers if the Federal Reserve rate hike is in line with market expectations. Let’s examine the charts of five cryptocurrencies that are positive in the short term.
Bitcoin recovered from $19,320 on Sept. 16 and crossed $20,000 on Sept. 17, but the bulls are struggling to hold higher levels. This suggests that bears are operating at a higher level.
The 20-day exponential moving average ($20,432) is edging down and the Relative Strength Index (RSI) is in the negative zone, sentiment remains negative, indicating traders are selling near the overhead resistance level. suggesting.
If the price continues to fall below $19,320, the BTC/USDT pair could drop to $18,510. Buyers are expected to adhere to this level vigorously.
On the upside, the 50-day simple moving average ($21,605) is a key level to watch. If the bulls push the price upwards, the pair can rally to $25,211. Breaking and closing this resistance could mark the beginning of a new uptrend.
The 4-hour chart shows that sellers are trying to slow the recovery at the 20-EMA. This shows that the bears are not willing to give up their advantage. If the weakness continues and the price breaks below $19,320, the pair can drop to his $18,510 level.
Conversely, if the price rises from current levels and crosses the 20-EMA, the recovery could extend as far as the 50-SMA. This level could act as resistance again, but if this obstacle clears, the next stop could be the 61.8% Fibonacci retracement level at $21,470.
Ripple (XRP) has been stuck in the $0.30 to $0.39 range for days. The price has reached range resistance and could signal the start of a new uptrend if the bulls clear this hurdle.
In a range, traders usually buy near the support and sell near the resistance. If the price drops sharply from current levels and breaks below the moving averages, it indicates that the XRP/USDT pair may extend its consolidation for a few more days.
Although the moving averages are crossing each other, the RSI has jumped into positive territory, indicating a slight edge for the bulls. If the buyers can sustain the price above $0.39, the pair can rally to $0.48.
The pair surged from $0.32 to $0.39, indicating strong buying by the bulls. The 20-EMA is rising and the RSI is in the positive zone, suggesting the path of least resistance is upwards.
If the price continues to rise and breaks out of $0.39, bullish momentum will increase and the pair could move to $0.41. This level may act as resistance, but the rally can resume if buyers turn his $0.39 level into support.
Chainlink (LINK) has been stuck in a wide range between $5.50 and $9.50 for the past few weeks, indicating that buyers are trying to make a bottom. The bulls pushed the price above the moving averages and the RSI jumped into positive territory, indicating that positive momentum may be improving.
There is a small resistance at $8.30 and the LINK/USDT pair could rally to a tight resistance at $9.50 if the bulls push the price above it. This level is likely to attract aggressive selling by the bears, but if the bulls break through the barrier, it could signal the beginning of a new uptrend.
The moving averages are important supports to watch on a downtrend. This is because if the moving average breaks down, the selling pressure could increase. This could lead to a drop to $7 and then to $6.20.
Buyers are trying to defend the moving averages on the 4-hour chart. A rally to the overhead resistance of $8.20 is likely to start. If the price breaks out of this overhead resistance, the pair can move up to $9.
If the bulls fail to push the price above $8.20, the bears may fantasize about the opportunity and try to break below the moving averages. It could tip in favor of the bears. The pair may first fall to $7.50 and then to $7.
Related: Dogecoin has fallen 75% against Bitcoin since Elon Musk’s SNL appearance.
The bears pulled EOS below the 50-day SMA ($1.44) on Sept. 15, but failed to break the support at $1.34. This suggests that the bulls are looking to buy on the downside and form a low near $1.34.
A minor downside is that the bulls are facing stiff resistance at the 20-day EMA ($1.50). This shows that the bears are not giving up and trying to usurp control. This battle between the bulls and the bears is likely to resolve with a strong breakout.
If the price breaks out of the 20-day EMA, the bullish momentum will increase and the EOS/USDT pair can rally to $1.86. Alternatively, if the price falls and he breaks below $1.34, the pair can drop to $1.24. A break below this support can send the pair down to $1.
The recovery weakened near $1.50, indicating that the bears are continuing to sell in the rally. The bears will try to further cement their dominance by driving the price below the strong support at $1.34, but that may not be easy.
Buyers have held the $1.34 levels three times and will try to do so again. If the price bounces off $1.34, the bulls could again attempt a rally above the overhead resistance of $1.50. Once that happens, a rally to $1.70 and then to $1.86 is possible.
Tezos (XTZ) broke below the 20-day EMA ($1.57) on Sept. 13, but the bears were unable to push the price to the support line of the symmetrical triangle. This shows that buyers are continuing the decline and are not waiting for a deeper correction to make an entry. This increases your chances of recovery in the short term.
If the price breaks out of the 20-day EMA, the XTZ/USDT pair can rally to the 50-day SMA ($1.66). This level is an important one to watch as it has acted as a strong resistance on the last two occasions. If the bulls overcome this barrier, the pair could attempt a rally to the triangle resistance line.
A breakout of the triangle indicates a potential trend change. The pair can then move up to $2 and then to $2.36.
In the meantime, the bear may have other plans. They try to slow the recovery with moving averages. If the price turns down from the current levels and breaks below the $1.50 to $1.40 support zone, the June low of $1.20 is likely to revisit.
The 4-hour chart shows that the bulls defended the $1.50 support and pushed the price above the downtrend line but failed to sustain higher levels. If the bears break down of $1.50, the pair can drop to $1.40.
On the other hand, if the price bounces off the $1.50 support again, it suggests that lower levels will continue to attract buyers. The bulls will then attempt to push the price above the moving averages and challenge the $1.62 resistance. Below this level, a rally to $1.70 is possible.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investment and trading movements involve risk. You should do your own research when making a decision.
Here’s why a 0.75% Fed rate hike is bullish for Bitcoin and Altcoins:
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