Bitcoin and other cryptocurrencies are likely to witness a pick up in volatility following the Fed’s rate decision on Sep. 20.
Bitcoin’s (BTC) recovery is facing selling above $27,000, indicating near-term nervousness due to the Federal Reserve’s meeting on Sep. 20. However, long-term investors are unfazed and they have continued to accumulate. Glassnode data shows that Bitcoin’s inactive supply has been at all-time highs since July.
This bullish temperament is not reflected in institutional activity, however. Investors have cut down on their cryptocurrency exposure and are sitting on the sidelines awaiting more clarity on the regulatory and macroeconomic front. Asset manager CoinShares reported that outflows from exchange-traded products hit $455 million over the past nine weeks.
Meanwhile, analysts remain divided about Bitcoin’s near-term price action. Bollinger Bands creator John Bollinger speculated in a X (formerly Twitter) post that Bitcoin could start an up-move but added that it was “too early to answer.”
The volatility could increase after Fed Chair Jerome Powell’s press conference but traders should be careful not to get sucked into a bull or a bear trap. It is better to wait on the sidelines and enter after the volatility subsides and a directional move begins.
What are the important levels to watch for on Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is facing stiff resistance at the 50-day simple moving average ($27,154) indicating that the bears are trying to halt the recovery.
The upsloping 20-day exponential moving average ($26,499) and the relative strength index (RSI) in the positive territory indicate that bulls are in control. If the price rebounds off the 20-day EMA, it will enhance the prospects of a rally above the 50-day SMA. If that happens, the BTC/USDT pair could climb to $28,143.
Related: Bitcoin price eyes $28K as Binance legal battle spurs bullish momentum
Conversely, if the price turns down and breaks below the 20-day EMA, it will indicate that the bears remain active at higher levels. A break and close below $26,000 may accelerate selling and sink the pair toward the crucial support at $24,800.
Ether price analysis
Ether (ETH) has been maintaining above the breakdown level of $1,626 for the past few days but the bulls have failed to build up on this strength.
The long wick on the Sep. 18 and 19 candlestick shows selling by the bears at higher levels. The flattish 20-day EMA ($1,637) and the RSI just below the midpoint suggest a balance between buyers and sellers.
A rally above $1,680 could tilt the advantage in favor of the bulls. The ETH/USDT pair could then rally to $1,745. On the contrary, a slide below $1,600 will suggest that bears have not yet given up. That could pull the pair to $1,530.
BNB price analysis
Buyers tried to shove BNB (BNB) above the overhead resistance at $220 on Sep. 18 and 19 but the bears defended the level successfully.
A minor advantage in favor of the bulls is that they have not allowed the price to slide back below the 20-day EMA ($215). This suggests that the bulls are buying the minor dips as they expect the up-move to extend further.
If buyers clear the zone between $220 and the 50-day SMA ($223), the BNB/USDT pair could start a rally toward $235.
If bears want to prevent the upside, they will have to tug the price back below the 20-day EMA. That could keep the price stuck inside the $203 to $220 range for a while longer.
XRP price analysis
XRP (XRP) rose and closed above the 20-day EMA ($0.50) on Sep. 19, indicating that the bulls have the upper hand.
If the price stays above the 20-day EMA, it will suggest that the bulls are trying to flip the level into support. That will open the gates for a potential rise to the overhead resistance at $0.56 where the bears will likely make their stand.
The price action of the past few days is showing signs of forming a bullish ascending triangle pattern, which will complete on a break and close above $0.56. Buyers will have to keep XRP price above the uptrend line to safeguard the setup.
Cardano price analysis
The bulls have been trying to push Cardano (ADA) above the 20-day EMA ($0.25) for the past few days but the bears have not relented.
The flattening 20-day EMA and the RSI just below the midpoint suggest a balance between supply and demand. If buyers sustain the price above the 20-day EMA, ADA price will attempt a rally to the overhead resistance at $0.28.
Alternatively, if the price turns down sharply from the current level, it will signal that the bears are selling on relief rallies. A break and close below the $0.24 support will indicate the start of the next leg of the downtrend. The next support on the downside is at $0.22.
Dogecoin price analysis
Dogecoin (DOGE) has been trading near the 20-day EMA ($0.06) for the past few days, indicating that the bears are defending the level aggressively.
A small positive in favor of the bulls is that they have not allowed the price to slip below $0.06. This suggests that the bulls are trying to clear the overhead hurdle. If the 20-day EMA gives way, the DOGE/USDT pair could climb to $0.07 and later to $0.08.
Instead, if the price turns down sharply from the current level, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then aim to yank the price below $0.06 and challenge the critical support at $0.055.
Solana price analysis
After struggling to rise above the 20-day EMA ($19.55) for a few days, Solana (SOL) finally overcame the obstacle on Sep. 18.
The 20-day EMA is flattening out and the RSI is just above the midpoint, indicating that the bears may be losing their grip. Buyers will try to push the price to the 50-day SMA ($21.14) and subsequently to the overhead resistance at $22.30. This level is likely to attract strong selling by the bears.
This positive view will invalidate in the near term if the SOL/USDT pair turns down and plummets below $18.50. The pair could then retest the strong support at $17.33.
Toncoin price analysis
Toncoin (TON) is currently in a strong uptrend. The bulls are trying to strengthen their position further by pushing the price above $2.59 but the bears have held their ground.
Although the up-move is facing selling near $2.59, the bulls have not ceded ground to the bears. This suggests that the traders are holding on to their positions as they anticipate another leg higher. Above $2.59, the TON/USDT pair could reach $2.90 and eventually $3.28.
The upsloping moving averages indicate advantage to buyers but the overbought level on the RSI warns of a possible correction or consolidation in the short term. The first support for TON price on the downside is $2.25 and the next level to watch out for is $2.07.
Polkadot price analysis
The bulls are struggling to propel Polkadot (DOT) above the breakdown level of $4.22, indicating that demand dries up at higher levels.
The bears will try to strengthen their position by sinking the price below the immediate support at $4. If they succeed, the DOT/USDT pair risks a slide to the crucial support at $3.90. A break and close below this level may start the next leg of the downtrend.
Instead, if the price turns up from the current level and rises above the $4.22-4.33 resistance zone, it could lead to short covering. The pair can first reach the 50-day SMA ($4.50) and thereafter climb to the downtrend line.
Polygon price analysis
Polygon (MATIC) rose and closed above the 20-day EMA ($0.54) on Sep. 19, indicating that the bulls are attempting a comeback.
Still, the 20-day EMA is likely to witness a tough battle between the bulls and the bears. If the bulls maintain the price above the 20-day EMA, the MATIC/USDT pair could climb to the overhead resistance at $0.60 and then to $0.65.
Contrarily, if the bears pull the price back below the 20-day EMA, it will signal that higher levels continue to attract selling. The bears will then try to build upon their advantage by pulling the price below $0.49.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.