The S&P 500 and the Nasdaq Composite Index suffered their worst weekly performance since June, as investors remain concerned that the Federal Reserve may have to continue its aggressive monetary policy to curb inflation and that could trigger a recession in the United States. Joined.
Bitcoin (BTC) remains closely correlated to the S&P 500 and is on track to drop more than 9% this week. If this correlation continues, it could bring more pain to crypto markets because Goldman Sachs strategist Sharon Bell has warned that aggressive rate hikes could trigger a 26% drop in the S&P 500.
Most expect the Fed to raise rates by 75 basis points at the next meeting on September 20-21, but the FedWatch tool shows an 18% chance of a 100 basis point rate hike.. This uncertainty could keep traders on edge, causing more short-term volatility.
If the Fed rate hike is in line with market expectations, some cryptocurrencies could attract buyers. Let’s study the charts of five cryptocurrencies that are positive in the short term.
BTC/USDT
Bitcoin rallied from $19,320 on Sep 16 and rallied above $20,000 on Sep 17, but bulls are struggling to hold higher levels. This suggests that the bears are active at higher levels.
The 20-day exponential moving average ($20,432) has gradually turned down and the RSI is in the negative zone, which suggests that the sentiment remains negative and traders are selling near resistance levels.
If the price continues to decline and breaks below $19,320, the BTC/USDT pair could drop to $18,510. Buyers are expected to defend this level vigorously.
Upward, the 50-day simple moving average ($21.605) is the key level to watch. If the bulls push the price above it, the pair could rally to $25.211.. A breakout and close above this resistance could signal the start of a new uptrend.
On the 4-hour chart, sellers are attempting to stall the recovery at the 20-day EMA. This indicates that the bears are not willing to give up their advantage. If the weakness persists and the price breaks below $19,320, the pair could drop to $18,510.
Conversely, if the price turns up from the current level and breaks above the 20-day EMA, the rally could extend to the 50-day SMA. This level may act as resistance again, but if this hurdle is broken, the next stop could be the 61.8% Fibonacci retracement level of $21,470.
XRP/USDT
Ripple (XRP) has been stuck in a range between $0.30 and $0.39 for many days. The price has reached the resistance of the range and if the bulls break through this hurdle, it could signal the start of a new uptrend.
In a range, traders typically buy near support and sell near resistance. If the price turns sharply lower from the current level and breaks below the moving averages, it will indicate that the XRP/USDT pair may extend its consolidation for a few more days.
Although the moving averages are crossing, the RSI has jumped into positive territory, which indicates that the bulls have a slight advantage. If the buyers push and sustain the price above $0.39, the pair could rally as high as $0.48.
The pair rallied strongly from $0.32 to $0.39, indicating strong buying by the bulls. The 20 EMA has turned up and the RSI is in the positive zone, which suggests that the path of least resistance is to the upside.
If the price continues to rise and breaks above $0.39, the upside momentum could increase and the pair could rally as high as $0.41. This level could act as resistance, but if the buyers turn the $0.39 level into support, the move up could resume.
LINK/USDT
Chainlink (LINK) has been stuck inside a wide range between $5.50 and $9.50 for the past few weeks, which indicates that the buyers are attempting to form a bottom. The bulls pushed the price above the moving averages and the RSI jumped into the positive territory, indicating that the positive momentum might be improving.
There is a minor resistance at $8.30 and if the bulls push the price above it, the LINK/USDT pair could rally to the strong resistance at $9.50. This level is likely to attract aggressive selling by the bears, but if the bulls break through the barrier, it could signal the start of a new uptrend.
The moving averages are the important support to watch on the downside as if they give way, selling pressure could increase. That could start a decline to $7 and subsequently to $6.20.
The buyers try to defend the moving averages on the 4-hour chart. This could start a rally towards the overhead resistance of $8.20. If the price breaks through this resistance, the pair could rally to $9.
If the bulls fail to break above $8.20, the bears might try to sink the pair below the moving averages. This could tip the advantage in favor of the bears. The pair could first drop to $7.50 and then $7.
EOS/USDT
The bears took EOS below the 50-day moving average ($1.44) on Sept. 15 but failed to break the $1.34 support. This suggests that the bulls are buying the dips and attempting to form a bottom near $1.34.
A minor negative is that the bulls are facing stiff resistance at the 20-day EMA ($1.50). This indicates that the bears have not given up and are trying to take control. This fight between the bulls and the bears is likely to be resolved with a strong breakout.
If the price breaks above the 20-day EMA, the bullish momentum could increase and the EOS/USDT pair could rally to $1.86. On the other hand, if the price turns down and breaks below $1.34, the pair could drop to $1.24. A break below this support could sink the pair to $1.
The recovery faltered near $1.50, which indicates that the bears are still selling on the upside. The bears will try to consolidate their advantage by pulling the price below the strong support at $1.34, but it may not be that easy.
Buyers have defended the $1.34 level three times and will try again. If the price rebounds from $1.34, the bulls could once again attempt a rally above the overhead resistance of $1.50. If they succeed, a rally to $1.70 and subsequently to $1.86 is possible.
XTZ/USDT
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 indicates that buyers are accumulating on the dips and are not waiting for a deeper correction to make an entry. This increases the probability of a short-term recovery.
If the price breaks above the 20-day EMA, the XTZ/USDT pair could rally to the 50-day SMA ($1.66). This level has acted as strong resistance on two previous occasions, so it is an important level to watch. If the bulls break through this barrier, the pair could attempt a rally to the resistance line of the triangle.
A break above the triangle will signal a possible change in trend. The pair could go as high as $2 and then as high as $2.36.
In the meantime, the bears probably have other plans. They will try to stop the rally at the moving averages. If the price turns down from the current level and slides below the $1.50-$1.40 support zone, the June low at $1.20 could be revisited.
The 4-hour chart shows that the bulls defended the $1.50 support and pushed the price above the downtrend line, but could not sustain the higher levels. If the bears sink the price below $1.50, the pair could drop to $1.40.
On the other hand, if the price bounces off the $1.50 support once again, it will suggest that lower levels continue to attract buyers. The bulls will then try to push the price above the moving averages and challenge the resistance at $1.62. If this level gives way, the move up could reach $1.70.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investment and commercial movement implies a risk, you must carry out your own investigation when making a decision.
