The Federal Reserve decided to hold off on hiking interest rates during its meeting on September 20. However, Fed Chair Jerome Powell indicated that rates could stay higher for a longer period of time in order to bring inflation down to the target of 2%. This announcement may have been the trigger for a sell-off in both the US equities markets and the cryptocurrency space.
In a high-interest-rate environment, risk assets tend to underperform. This is likely why the S&P 500 is down over 2% and the Nasdaq is down about 3% this week. However, Bitcoin has remained relatively flat during this time.
Altcoins, on the other hand, have been unable to hold on to their gains this week due to a risk-off sentiment. Despite this, Bitcoin and major altcoins have managed to stay above their crucial support levels.
The next few days are critical for the market as it could witness a battle between the bulls and the bears. The outcome of this battle will determine whether prices will go up or down.
Analyzing the top 10 cryptocurrencies in the market, Bitcoin has been trading between moving averages, indicating indecision in the market. If the price rises, the bulls will try to overcome the barrier at the 50-day simple moving average and potentially surge to the next resistance level.
Ether turned down from the 20-day exponential moving average, suggesting that bears continue to sell on rallies. If the price drops below a vital support level, it could start a downward move toward the next major support.
BNB turned down from a certain level and broke below the 20-day exponential moving average, indicating a potential consolidation phase. The bulls will need to clear a hurdle to signal a comeback.
XRP rose above a moving average but struggled to sustain the recovery, dropping back to a support level. If the price turns up or rebounds from this support, it suggests a change in sentiment.
Cardano’s ADA has formed a descending triangle pattern, which will complete on a break below a certain level. The moving averages suggest an advantage to bears, but there is a bullish divergence in the relative strength index, indicating slowing bearish momentum.
Dogecoin turned down from a moving average, indicating aggressive defense from bears. However, the bears have not been able to break below a strong support level, suggesting bullish buying on dips.
Solana rose above a moving average but bears are active at higher levels. The 20-day exponential moving average is witnessing a tough battle between bulls and bears.
Toncoin failed to rise above a certain level, indicating a potential short-term profit booking. The immediate support is crucial and if the price bounces off this level, a break above a certain level could occur.
Polkadot’s bears are fiercely guarding a breakdown level, suggesting that relief rallies are being sold into. However, there is a minor advantage for bulls as the relative strength index shows signs of forming a positive divergence.
Polygon closed above a moving average but failed to build momentum. The bears pulled the price back below the moving average and will try to sink it below a strong support level.
Overall, the next few days will be crucial for the cryptocurrency market, as the battle between bulls and bears intensifies. The outcome will determine the direction of prices in the near term.