The S&P 500 and the Nasdaq Composite Index posted their worst weekly performance since June, as investors continue to worry that the Federal Reserve will need to continue its aggressive monetary policy to contain inflation, which could lead to a recession in the global economy. United States.
Bitcoin (BTC) remains closely correlated with the S&P 500 and is on track to fall more than 9% this week. If this correlation continues, it could hurt cryptocurrency markets more, as Goldman Sachs strategist Sharon Bell warned that aggressive rate hikes could cause a 26% drop in the S&P 500.
The majority expects the Fed to raise rates by 75 basis points at its next meeting September 20-21, but the FedWatch Tool gives an 18% chance of a 100 basis point rate hike. This uncertainty can keep traders on their toes, resulting in increased short-term volatility.
If the Fed’s rate hike is in line with market expectations, certain cryptocurrencies could attract buyers. Let’s study the charts of five cryptocurrencies that are positive in the short term.
Bitcoin recovered from $19,320 on September 16 and surged above $20,000 on September 17, but the bulls are struggling to hold the higher levels. This suggests that bears are active at higher levels.
The 20-day exponential moving average ($20,432) has gradually declined and the relative strength index (RSI) is in negative zone, suggesting that sentiment remains negative and traders are selling near above resistance levels.
If the price continues lower and moves below $19,320, the BTC/USDT pair could drop as low as $18,510. Buyers are expected to defend this level with vigor.
On the upside, the 50-day moving average ($21,605) is the top level to watch. If bulls push the price above it, the pair could rise towards $25,211. A break and close above this resistance could signal the start of a new uptrend.
The 4-hour chart shows sellers trying to slow the recovery near the 20 EMA. This indicates that the bears are not in the mood to give up their advantage. If the weakness persists and the price moves below $19,320, the pair could slide towards $18,510.
Conversely, if the price rises from current levels and breaks above the 20-EMA, the recovery could extend to the 50-SMA. This level may act as resistance again, but if this obstacle is cleared, the next stop could be the 61.8% Fibonacci retracement level at $21,470.
Ripple (XRP) has been stuck in a range between $0.30 and $0.39 for days. The price has reached the resistance of the range and if bulls overcome this hurdle it could signal the start of another uptrend.
Within a range, traders usually buy near the support and sell close to the resistance. If the price falls sharply from its current level and moves below the moving averages, it indicates that the XRP/USDT pair may extend its consolidation for a few more days.
Although the moving averages are criss-crossing, the RSI has jumped into positive territory, indicating that bulls have a slight lead. If buyers push and hold the price above $0.39, the pair could rise towards $0.48.
The pair rose sharply from USD 0.32 to USD 0.39, signaling strong buying by the bulls. The 20 EMA is up and the RSI is in the positive zone, suggesting the path of least resistance is upwards.
If the price continues higher and moves above USD 0.39, bullish momentum could pick up and the pair could rise towards USD 0.41. This level may act as a resistance but if buyers turn the USD 0.39 level into support, upward movement may resume.
Chainlink (LINK) has been stuck in a wide range between $5.50 and $9.50 for the past few weeks, indicating that buyers are trying to form a bottom. The bulls pushed the price above the moving averages and the RSI jumped into positive territory, indicating that positive momentum could improve.
There is a small resistance near $8.30 and if bulls push the price above it, the LINK/USDT pair could rise towards the solid resistance of $9.50. This level is likely to attract aggressive bear sales, but if bulls break through the barrier, it could signal the start of a new uptrend.
The moving averages are the key support to watch out for on the downside, as if they recede, selling pressure could build. That could start with a drop to $7 and then to $6.20.
Buyers are trying to defend the moving averages on the 4-hour chart. That could start a recovery towards the $8.20 overhead resistance. If the price rises above this overhead resistance, the pair could rise towards USD 9.
If bulls fail to get the price above $8.20, the bears can take their chances and try to bring the pair below the moving averages. That could tip the advantage in favor of the bears. The pair could fall to $7.50 first and then $7.
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The bears brought EOS below the 50-day SMA ($1.44) on Sept. 15, but failed to break the $1.34 support. This suggests that bulls are buying on dips and trying to hit a low near $1.34.
One minor niggle is that bulls face strong resistance at the 20-day EMA ($1.50). This indicates that the bears have not given up and are trying to wrest control. This battle between the bulls and the bears is likely to be resolved with a strong breakout.
If the price breaks above the 20-day EMA, bullish momentum could increase and the EOS/USDT pair could rise towards $1.86. Alternatively, if the price falls below $1.34, the pair could fall as low as $1.24. A break below this support could push the pair towards $1.
The recovery faltered near $1.50 indicating bears are continuing to sell during rallies. The bears will try to further strengthen their lead by pushing the price below the strong $1.34 support, but it may not be that easy.
Buyers defended the $1.34 level three times and will try again. If the price bounces back from $1.34, the bulls may attempt another rally above the $1.50 overhead resistance. If they succeed, a rally to $1.70 and later to $1.86 is possible.
Tezos (XTZ) broke below the 20-day EMA ($1.57) on Sept. 13, but the bears were unable to pull the price toward the symmetrical triangle support line. This indicates that buyers are piling up on dips and not waiting for a deeper correction to make an entry. This increases the chance of recovery in the short term.
If the price breaks above the 20-day EMA, the XTZ/USDT pair could rise towards the 50-day SMA ($1.66). This level has acted as a strong resistance twice before, which is why it is an important level to keep an eye on. If bulls overcome this barrier, the pair could attempt a rally towards the triangle’s resistance line.
A break above the triangle indicates a possible trend change. The pair could then move up to $2 and later to $2.36.
Meanwhile, the bears probably have other plans. They will try to slow the recovery at the moving averages. If the price drops from current levels and dips below the $1.50 support zone to $1.40, the June low at $1.20 could be revised.
The 4-hour chart shows that the bulls defended the support at $1.50 and pushed the price above the downtrend line, but were unable to sustain the higher levels. If bears drop the price below $1.50, the pair could fall as low as $1.40.
On the downside, if the price bounces back from the $1.50 support, it suggests 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 collapses, the upward move could reach $1.70.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN. Every investment and trading move carries risks, you should do your own research when making a decision.