Bitcoin Recovery Faces Resistance; Institutional Investors Await Regulatory Clarity
Summary:
As Bitcoin (BTC) recovery faces opposition above $27,000 due to near-term anxieties ahead of the Federal Reserve meeting, long-term investors continue to amass, says Glassnode data. Institutional investors, however, have cut their cryptocurrency exposure, awaiting macroeconomic and regulatory clarity. Analysts are divided over Bitcoin’s short-term price action, urging traders to steer clear of potential market traps. Other cryptocurrencies, including Ether (ETH) and BNB (BNB), also experience resistance in their recovery processes. As price volatility is expected to increase, investors and traders are encouraged to conduct thorough research before making any decisions.
Bitcoin's (BTC) recovery effort seems to be stumbling due to sales above $27,000, signaling near-term anxiety ahead of the Federal Reserve meeting set for September 20. Regardless, long-ended investors remain unaffected and continue to amass. Data from Glassnode shows that Bitcoin's dormant supply has touched record highs since July. However, this bullish sentiment is not mirrored in institutional activities. Investment managers have reduced their exposure to cryptocurrency and are on standby awaiting clearer information on macroeconomic and regulatory conditions. CoinShares, the asset manager, recorded that withdrawals from exchange-traded products were amounted to $455 million in the past nine weeks.
Market performance from Coin360 shows variations in daily cryptocurrency activity. There is uncertainty about Bitcoin’s short-term price trend among analysts. John Bollinger, creator of Bollinger Bands, speculated in a X (formerly Twitter) post that Bitcoin might be on an upswing, though pointing out it was too early to confirm. With anticipated increased volatility post Fed Chair Jerome Powell’s press conference, traders are encouraged to refrain from falling into a bull or bear trap. Pregnant periods of volatility and directional movement suggest waiting might be the best move.
What are the critical levels to monitor for Bitcoin and major altcoins? Let’s explore the diagrams of the top-10 cryptocurrencies.
Bitcoin analysis reveals resistance at the 50-day simple moving average ($27,154), pointing out that bearish efforts may stall recovery. However, bullish signs are present in the rising 20-day exponential moving average ($26,499) and the positive relative strength index (RSI). If the price bounces off the 20-day EMA, chances of a rally above the 50-day SMA will increase, possibly pushing the BTC/USDT pair to $28,143.
Contrarily, if the price declines, breaking the 20-day EMA, it will signal continued bearish activities. Should it drop and close below $26,000, selling is likely to intensify, pushing the pair towards the vital support of $24,800.
Ether (ETH) has remained above its critical level of $1,626, though failed attempts by bulls to consolidate this strength are evident. Efforts to stabilize BNB (BNB) above the overhead resistance at $220 have not been successful, however, bulls have prevented the price from slipping below the 20-day EMA ($215). For XRP (XRP), closing above the 20-day EMA ($0.50) reveals bullish upper hand, as the bears have aggressively defended the level for Dogecoin (DOGE).
Cardano (ADA) attempt to go above the 20-day EMA ($0.25) has faced bearish resistance, although the leveling off of the EMA and the RSI just below midpoint indicates equilibrium between supply and demand. Toncoin (TON) bulls are trying to consolidate their dominance by pushing the price past $2.59. Polkadot (DOT) bulls are facing difficulties to move above the breakdown level of $4.22, hinting a diminishing demand at higher levels, while for Polygon (MATIC), the bulls are making a comeback, as indicated by closing above the 20-day EMA ($0.54) on September 19.
Overall, investments and trading moves carry risks and it's always wise to conduct proper research before making a decision.
Published At
9/20/2023 4:23:44 PM
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