Federal Reserve Interest Rate Decision Ignites Market Changes, How Are Top Cryptocurrencies Responding?
Summary:
The Federal Reserve's decision not to increase interest rates, with predictions they may stay high for a long duration, has reportedly triggered a sell-off in the US equities market and the cryptocurrency sector. Several top cryptocurrencies are currently battling key support levels, with Bitcoin remaining flat even after a more than 2% drop in the S&P 500 and a 3% decrease in the Nasdaq. Cryptocurrency price movements for Bitcoin, Ether, BNB, XRP, DOGE, SOL, TON, DOT, and MATIC are examined, with each exhibiting distinct behavior patterns in response to market conditions. The future trends depend on the tussle between the bullish and bearish forces.
Interest rates remained unchanged at the Federal Reserve's Sep. 20 meeting, with the suggestion that they may stay high for an extended period. Chairman Jerome Powell noted that it's a lengthy process to bring inflation down to a sustainable 2%. The US equities market and the cryptocurrency sector experienced a sell-off, possibly as a result of this statement. Risk assets typically deteriorate in a high-interest-rate climate. Despite a more than 2% drop in the S&P 500 and a 3% decrease in the Nasdaq this week, Bitcoin (BTC) - typically responsive to such moves - remained stable.
With risk-off sentiment prevailing, altcoins have been struggling to maintain their intra-week profits. However, it's worth noting that Bitcoin and other main altcoins have largely stayed above key support levels. The forthcoming days of price action will be crucial as both bullish and bearish forces face off.
The question now is whether the bears will overpower the bull control and cause a slide in Bitcoin and major altcoins, or if buyers will regroup and increase prices? By analyzing the charts of the top 10 cryptocurrencies, some insights may be gleaned.
Bitcoin has been moving within a narrow range between its moving averages over the past few days, suggesting that bulls and bears cannot agree on the direction the cryptocurrency should take next. Presently, buyers are striving to keep the BTC/USDT pair above the 20-day exponential moving average ($26,520). If successful, the pair could experience a surge in price to the next resistance level of $28,143.
In contrast, declines below the 20-day EMA could signal a bearish dominance, increasing the likelihood of a retest at the crucial $24,800 support level. If this were to occur, expect a fall towards the next major support at $1,368.
BNB's price dropped to $220 on Sep. 18 and slipped below the 20-day EMA ($214) on Sep. 20, possibly indicating a lingering consolidation between $203 and $220. Meanwhile, XRP advanced beyond the 20-day EMA ($0.51) on Sep. 19 but has struggled to sustain this rally.
Cryptocurrencies like ADA and DOGE are also exhibiting unique behaviors, with ADA forming a descending triangle pattern which could drop to $0.19 if the price falls below $0.24. Conversely, DOGE is meeting strong resistance at the $0.06 level, hinting at a possible swing between this and the 20-day EMA.
Taking a look at SOL, a fierce tug-of-war is playing out around the 20-day EMA. If the price falls below this point, the SOL/USDT pair could drop to $18.50, and then to the next support of $17.33.
Finally, coins like TON, DOT, and MATIC are seeing varied developments. TON’s failure to rise above $2.59 has led to profit-booking, which could push the pair towards an eventual high of $2.90. DOT’s downtrend could lead to a potential low of $3.58, while MATIC currently hangs in the balance, with the price needing to bounce off the $0.50 support for any chance of recovery.
This article is not intended as investment advice or recommendations. Please bear in mind that all investments and trading involve risk, and thorough research should be conducted before making a decision.
Published At
9/22/2023 4:25:38 PM
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