The Bitcoin market is currently facing uncertainty as analysts debate how interest rate reductions might influence its market trajectory.
The cryptocurrency has dipped below $60,000, suggesting growing apprehension among bullish investors. Following the Federal Reserve’s interest rate announcement on September 18th, Bitcoin’s volatility is likely to increase, but a sustained price movement in either direction seems improbable. After an initial market reaction, the price may stabilize within its existing trading range of $52,500 to $73,777.
Regarding the short-term impact of rate cuts, analysts hold differing perspectives. Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, predicts a potential market decline due to a narrowing interest rate gap between the US dollar and the Japanese yen.
In contrast, quantitative Bitcoin and digital asset fund Capriole Investments founder Charles Edwards believes that Bitcoin is ready to resume its bull phase if the Federal Reserve cuts rates, signalling the start of a dovish policy regime.
What are the critical levels in Bitcoin and altcoins that need to be crossed to indicate a bullish sentiment? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
Bitcoin’s price action of the past few days has formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears.
BTC/USDT daily chart. Source: TradingView
The price has turned down from the resistance line and is likely to fall to the 20-day exponential moving average ($58,639). This is an important level for the bulls to protect, because a break below it may open the doors for a fall to the support line of the triangle.
On the contrary, if the price rebounds off the 20-day EMA, it will improve the prospects of a rally above $61,200. If that happens, the BTC/USDT pair could start a recovery to $65,000 and subsequently to $70,000.
Ether (ETH) Market Analysis
Buyers tried to shove Ether above the 20-day EMA ($2,397) on Sept. 17, but the bears did not budge.
ETH/USDT daily chart. Source: TradingView
The uptrend line is the critical support to watch out for on the downside. If this support gives way, the selling could accelerate, and the ETH/USDT pair could plunge to $2,111 and eventually to $2,000.
Contrary to this assumption, if the bulls push the price above the 50-day SMA ($2,553), it will signal that the bears are losing their grip. The pair could rally to the breakdown level of $2,850. Buyers will have to clear this level to suggest a potential trend change.
BNB Market Analysis
BNB has been attempting to maintain above the moving averages, indicating a short-term positive sentiment.
BNB/USDT daily chart. Source: TradingView
Buyers will have to drive the price above $562 to indicate the continuation of the relief rally. The BNB/USDT pair could reach $600, where the bears are likely to pose a substantial challenge. If bulls overcome this barrier, the pair may reach $635.
Conversely, if the price breaks below the moving averages, it will suggest that the bears have overpowered the bulls. The pair could move downward toward the critical support at $460.
Solana (SOL) Price Analysis
The bulls tried to push Solana above the 20-day EMA ($134) on Sept. 17, but the bears held their ground.
SOL/USDT daily chart. Source: TradingView
The 20-day EMA has started to turn down and the RSI is in the negative territory indicating that bears have the upper hand. Minor support at $128, but if this level gives way, the SOL/USDT pair could plunge to $116.
Contrary to this assumption, if the price turns up from the current level and breaks above the 50-day SMA ($141), it will indicate the start of a sustained recovery. The pair may attempt a rally to $164.
XRP Price Analysis
XRP bounced off the 20-day EMA ($0.56) on Sept. 16, but the bulls could not push the price above the $0.60 overhead resistance.
XRP/USDT daily chart. Source: TradingView
The bears have pulled the price back to the moving averages on Sept. 18. If this support breaks down, the XRP/USDT pair may drop to the uptrend line. The bulls are expected to protect the uptrend line because a break below it may sink the pair to $0.46.
Instead, if the price turns up from the moving averages and breaks above $0.60, it will signal that the dips are being purchased. The pair could rally to $0.64, which may be a difficult hurdle to cross.
Dogecoin (DOGE) Price Analysis
Dogecoin has been trading near the downtrend line of the falling wedge pattern, indicating that the bulls have kept up the buying pressure.
DOGE/USDT daily chart. Source: TradingView
If the price turns up and breaks above the downtrend line, it will suggest the start of a new uptrend. The DOGE/USDT pair could rally to $0.14, where the bears may mount a strong defence.
Contrary to this assumption, if the price turns down sharply from the current level, it will suggest that the bears are selling on rallies. The pair may slump to $0.09 and subsequently to $0.08.
Toncoin (TON) Price Analysis
Toncoin has been trading near the 20-day EMA ($5.46) for the past two days, indicating a tough battle between the bulls and the bears.
TON/USDT daily chart. Source: TradingView
The flattening 20-day EMA and the RSI near the midpoint do not favour either the bulls or the bears. If the price turns up from the 20-day EMA and breaks above the 50-day SMA ($5.82), it will signal the start of a strong recovery. Above $6, the TON/USDT pair may travel to $7.
Contrarily, if the price skids below the 20-day EMA, the selling may pick up, and the pair could plummet to the $4.72 to $4.44 support zone.
Cardano (ADA) Price Analysis
Cardano has formed a descending triangle pattern, which will complete on a break and close below $0.31.
ADA/USDT daily chart. Source: TradingView
If that happens, the ADA/USDT pair is likely to dip to $0.24. This is an essential level to watch out for because if it cracks, the selling could intensify, and the pair may enter a free fall toward $0.20.
If bulls want to prevent the decline, they will have to quickly propel the price above the downtrend line. That will invalidate the bearish pattern, resulting in a possible short squeeze. The pair could then attempt a rally to $0.40 and later to $0.45.
Avalanche (AVAX) Price Analysis
The Bulls are struggling to push the Avalanche above the resistance line of the descending channel, but a positive sign is that they have not allowed the price to dip below the 50-day SMA ($22.82).
AVAX/USDT daily chart. Source: TradingView
The bulls will again try to drive the price above the channel’s resistance line. If they succeed, the AVAX/USDT pair could rally to the breakdown level of $29 and thereafter to $33.
Contrarily, if the price continues lower and breaks below the 50-day SMA, it will signal that the bulls have given up. That may drag the price down to the solid support at $19.50. The bulls are expected to defend this level vigorously.
Shiba Inu (SHIB) Price Analysis
Shiba Inu continues to trade between the 50-day SMA ($0.000014) and the horizontal support at $0.000012, indicating that the bears have a slight edge.
SHIB/USDT daily chart. Source: TradingView
The bears will try to sink the price below the $0.000012 support. If they succeed, the SHIB/USDT pair could start the next leg of the down move to $0.000011 and then to $0.000010.
Alternatively, if the price turns up and closes above the 50-day SMA, it will suggest that the sellers are closing their positions. That may start a recovery to $0.000016. This level may be a temporary barrier, but the pair may reach $0.000020 if cleared.
