Headline: "Federal Reserve Chair Cautions on Inflation, Bitcoin Predicted to Reach $35,000: Cryptocurrency Market Analysis
Summary:
Federal Reserve Chair Jerome Powell warns of high inflation and potential rate hikes. Bitcoin's price could rise to $35,000 by April 2024, predicts Pantera Capital. Analysis of top cryptocurrencies' price movements reveals a mix of bearish and bullish signals. Bears maintain selling pressure, while bulls defend key support levels. Buyers struggle to overcome resistances in the crypto market. The article does not provide investment advice and urges readers to conduct their own research.
Federal Reserve Chair Jerome Powell has warned that inflation remains high and the central bank is ready to raise rates further if necessary, supporting the expectation of higher interest rates for a longer period. Despite a minor sell-off, the US equities markets have recovered from intraday lows, leaving traders uncertain about the next market catalyst. Cryptocurrency investment firm Pantera Capital predicts that Bitcoin's price could reach $35,000 by April 2024, followed by a potential rally to $148,000. Now, let's analyze the charts of the top-10 cryptocurrencies to see if bears will continue to exert selling pressure and push prices below key support levels.
Bitcoin price analysis: Bitcoin faced rejection at the resistance level of $26,833 on August 23, indicating that selling pressure persists. The cryptocurrency remains trapped in a range between $26,833 and $24,800, which is a bearish sign as it lacks strong buying momentum. A break below $24,800 could trigger a cascade of selling, potentially pushing the price down to the crucial support level of $20,000. On the other hand, a close above the 20-day exponential moving average ($27,463) would suggest renewed strength and the possibility of a rally towards the 50-day simple moving average ($29,055).
Ether price analysis: Ether briefly surpassed the overhead resistance level of $1,700 on August 23 but failed to sustain the higher levels, indicating strong selling pressure. The cryptocurrency is currently under the control of bears with downward pressure coming from the downsloping moving averages and oversold conditions observed on the Relative Strength Index (RSI). If sellers manage to breach the $1,626 to $1,550 zone, the ETH/USDT pair could experience a downward move towards $1,368. However, if bulls successfully push the price above the 20-day EMA ($1,737), it may indicate a potential consolidation between $1,626 and $2,000 in the coming days.
BNB price analysis: Binance Coin's recovery has been hindered by resistance near the breakdown level of $220, suggesting bearish sentiment. Efforts by bears to push the price towards the psychological support level of $200 may result in increased selling pressure, potentially driving the BNB/USDT pair to the next crucial support at $183. To prevent further decline, buyers will need to reclaim the 20-day EMA ($225), triggering a potential rally towards the resistance line, which could lead to renewed selling pressure.
XRP price analysis: XRP's rebound from the $0.50 support level failed to reach the overhead resistance at $0.56, indicating waning demand at higher levels. Bears are likely to strengthen their position by pushing the price below the $0.50 support, potentially causing a downward slide towards the next significant support at $0.41. Conversely, if bulls manage to drive the price above the 20-day EMA ($0.56), it could suggest weakening bearish grip and trigger a relief rally towards the 50-day simple moving average ($0.63).
Cardano price analysis: Cardano has struggled to overcome the obstacle at $0.28, with bears taking advantage of minor rallies. The defense of the $0.24 support indicates potential range-bound trading between $0.24 and $0.28. However, breaking below $0.24 would signal a resumption of the downtrend, potentially leading the ADA/USDT pair towards $0.22 and subsequently $0.20. Conversely, breaking and closing above the range could spark a recovery towards $0.32.
Solana price analysis: Solana faced rejection at the breakdown level of $22.30 on August 24, indicating that bears have turned this level into resistance. If sellers manage to push the price below the immediate support at $19.35, the SOL/USDT pair could decline further towards $18 and subsequently $16. Negative sentiment is reinforced by the downsloping 20-day EMA ($22.33) and the RSI in negative territory. Should bulls stage a comeback, reclaiming the overhead resistance at $22.30 may prompt a rally towards the 50-day SMA ($23.67).
Dogecoin price analysis: The presence of long wicks on Dogecoin's candlestick suggests persistent selling by bears. A fall below the critical support at $0.06 would indicate sustained bearish control, potentially leading to a retest of the intraday low of $0.055 recorded on August 17. However, a rebound from $0.06 would signify strong buying interest and could push the price towards the 20-day EMA ($0.07), a level that needs to be surpassed to initiate a rally towards $0.08.
Polkadot price analysis: Polkadot has been trading within a narrow range between $4.22 and $4.56, with bulls successfully defending the support at $4.22 but struggling to break above the resistance at $4.56. Maintaining a relatively stable position near the overhead resistance enhances the possibility of a potential breakout. In such a scenario, the DOT/USDT pair may initially rise towards the 20-day EMA ($4.68) and potentially rally to the breakdown level of $5. On the other hand, the bulls must defend the $4.22 level as a breach could lead to the next leg of the downtrend towards $4.
Polygon price analysis: Polygon has gradually declined towards the crucial support level at $0.51, indicating bearish pressure. Despite reaching oversold territory on the RSI, the lack of a rebound suggests weak buying interest. If the $0.51 level is breached, selling may intensify, with the MATIC/USDT pair potentially diving towards $0.45. On the upside, clearing the critical resistance at $0.60 could lead to a recovery towards the 50-day SMA ($0.68).
Toncoin price analysis: Toncoin has been forming an inverse head and shoulders pattern, currently needing a break above $1.53 to complete it. The upward turn of the 20-day EMA ($1.35) and the positive RSI indicate the potential for a bullish comeback. If buyers successfully push the price past $1.53, the TON/USDT pair could gain momentum, aiming for the pattern's target of $1.91. However, a downturn from the current level would suggest continued bearish pressure, potentially pushing the price towards the moving averages and subsequently $1.25.
Note: This article provides analysis and does not offer investment advice or recommendations. Readers should conduct their own research before making any investment decisions.
Published At
8/25/2023 7:43:32 PM
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