Bitcoin’s recovery is currently facing selling pressure above the $27,000 level, as investors await the Federal Reserve’s meeting on September 20. However, long-term investors are undeterred and are continuing to accumulate Bitcoin. Data from Glassnode shows that Bitcoin’s inactive supply has reached all-time highs since July.
Despite the bullish sentiment among long-term investors, institutional activity in the cryptocurrency market has been cautious. Many investors have reduced their exposure to cryptocurrencies and are waiting on the sidelines for more clarity on regulatory and macroeconomic factors. CoinShares reported that outflows from exchange-traded products have totaled $455 million over the past nine weeks.
Analysts have mixed opinions on Bitcoin’s near-term price action. John Bollinger, the creator of Bollinger Bands, speculated in a Twitter post that Bitcoin could start an upward movement, but stated that it was too early to tell. The volatility in the market is expected to increase further after Fed Chair Jerome Powell’s press conference. Therefore, traders are advised to be cautious and wait for the volatility to subside before entering any positions.
Let’s take a look at the important levels to watch for in Bitcoin and other major altcoins.
Bitcoin’s price analysis:
Bitcoin is currently facing strong resistance at the 50-day simple moving average ($27,154), indicating that bears are trying to prevent a further recovery. However, the upsloping 20-day exponential moving average ($26,499) and the positive relative strength index (RSI) suggest that bulls are still in control. If the price rebounds from the 20-day EMA, it could enhance the chances of a rally above the 50-day SMA. In that case, Bitcoin could climb to $28,143. On the other hand, a break below the 20-day EMA could indicate that bears are still active at higher levels, potentially leading to a further sell-off towards the crucial support at $24,800.
Ether’s price analysis:
Ether has managed to stay above the breakdown level of $1,626 in recent days, but the bulls have struggled to build on this strength. The long wick on the candlestick chart shows selling pressure from bears at higher levels. The flattish 20-day EMA ($1,637) and the RSI below the midpoint suggest a balance between buyers and sellers. A rally above $1,680 could tilt the advantage in favor of bulls, with a potential rally to $1,745. On the other hand, a slide below $1,600 would indicate that bears are still in control and could push the price down to $1,530.
BNB’s price analysis:
Buyers have attempted to push BNB above the resistance level at $220, but bears have successfully defended this level. However, bulls have managed to hold the price above the 20-day EMA ($215), indicating their strength. If buyers can clear the zone between $220 and the 50-day SMA ($223), BNB could start a rally towards $235. On the other hand, if bears push the price below the 20-day EMA, it could keep the price range-bound between $203 and $220 for a while longer.
XRP’s price analysis:
XRP has risen and closed above the 20-day EMA ($0.50), suggesting that bulls currently have the upper hand. If the price remains above the 20-day EMA, it could indicate that bulls are trying to turn this level into support. This could open the door for a potential rise to the overhead resistance at $0.56. The recent price action also shows signs of forming a bullish ascending triangle pattern, which would complete on a break and close above $0.56. Buyers will have to keep the price above the uptrend line to maintain this setup.
Cardano’s price analysis:
Cardano has been attempting to break above the 20-day EMA ($0.25) in recent days, but bears have resisted. The flattening 20-day EMA and the RSI just below the midpoint suggest a balance between supply and demand. If buyers can sustain the price above the 20-day EMA, ADA could rally to the overhead resistance at $0.28. On the other hand, if the price turns down sharply from the current level, it would signal that bears are selling on relief rallies. A break below the $0.24 support would indicate the start of the next leg of the downtrend.
Dogecoin’s price analysis:
Dogecoin has been trading near the 20-day EMA ($0.06), indicating that bears are defending this level aggressively. However, bulls have managed to keep the price above $0.06, suggesting that they are trying to clear the overhead hurdle. If the 20-day EMA is surpassed, DOGE could climb to $0.07 and later to $0.08. Conversely, if the price turns down sharply, it would suggest that sentiment remains negative, and bears could push the price below $0.06 towards the critical support at $0.055.
Solana’s price analysis:
Solana has struggled to rise above the 20-day EMA ($19.55) for several days but finally managed to overcome this obstacle on September 18. The flattening 20-day EMA and the RSI just above the midpoint indicate that bears may be losing their grip. Buyers will aim to push the price to the 50-day SMA ($21.14) and the overhead resistance at $22.30, which is likely to attract strong selling. However, this bullish view would be invalidated if Solana turns down and drops below $18.50, potentially retesting the strong support at $17.33.
Toncoin’s price analysis:
Toncoin is currently in a strong uptrend, with buyers attempting to push the price above $2.59. Although the up-move is facing selling near this level, bulls have held their ground. A move above $2.59 could take TON to $2.90 and eventually $3.28. The upsloping moving averages indicate an advantage to buyers, but the overbought level on the RSI warns of a possible correction or consolidation in the short term. The first support on the downside is $2.25, followed by $2.07.
Polkadot’s price analysis:
Bulls have struggled to push Polkadot above the breakdown level of $4.22, indicating a lack of demand at higher levels. The bears will attempt to sink the price below the immediate support at $4 and, if successful, the next support is at $3.90. A break and close below this level could start the next leg of the downtrend. On the other hand, if the price turns up and rises above the $4.22-4.33 resistance zone, it could lead to short covering. The pair may then reach the 50-day SMA ($4.50) and the downtrend line.
Polygon’s price analysis:
Polygon rose above the 20-day EMA ($0.54) on September 19, indicating that bulls are attempting a comeback. However, the 20-day EMA is likely to be a tough battle between bulls and bears. If bulls can maintain the price above this level, MATIC could climb to the overhead resistance at $0.60 and then $0.65. Conversely, if bears pull the price below the 20-day EMA, it would indicate continued selling pressure at higher levels. Bears would then attempt to push the price below $0.49.
In conclusion, Bitcoin’s recovery is facing selling pressure as investors await the Federal Reserve’s meeting. Long-term investors remain unfazed and continue to accumulate. Institutional activity, however, has seen reduced exposure to cryptocurrencies. Analysts have mixed opinions on Bitcoin’s near-term price action, and caution is advised due to potential volatility. It is recommended to wait for volatility to subside before entering any positions. The article also provides analysis on the price levels and trends of Ether, BNB, XRP, Cardano, Dogecoin, Solana, Toncoin, Polkadot, and Polygon.