Investors’ worry about the Fed’s rate hike plans and a weakening bull market rally, as well as this week’s Jackson Hole Economic Symposium, are reflected in the price movement of Bitcoin, altcoins, and stocks.
Investors are concerned that rate hikes might not be possible for the United States and European stock markets.
Investors are also concerned about the Jackson Hole economic symposium scheduled for Aug. 25, which could cause further anxiety. Investors are worried that Jerome Powell, the Federal Reserve chairman, could expand on Fed Chairman Jerome Powell’s Fed’s hawkish stance as well as plans for future interest rates hikes.
Institutional investors have stayed away from crypto markets because of this macro uncertainty. CoinShares data revealed that crypto investment products had weekly volumes of $1Billion, which is 55% less than the yearly average.
Material Indicators, an on-chain analytics resource, stated that Bitcoin ( TC) has not fallen below July’s lows. This indicates that the bearish market rally is still not over. To gain an advantage, buyers will need to push the price higher than the 200-week moving mean of $23,000.
What are the key levels to monitor? Could Bitcoin and other major altcoins make an impressive comeback in the coming days? Let’s look at the charts for the top 10 cryptocurrencies to see what we can find.
On Aug. 19, the buyers protected the support line for the ascending channel and began a bounce, but the recovery was stalled at $21,800. This indicates that bears pose a formidable challenge to the moving averages.
The Aug. 22 candlestick’s long tail shows that bulls are trying to defend the support line vigorously. This is a minor positive. The BTC/USDT pair may rise to the $20,725, EMA (20-day exponential moving average) ($22,725) if bulls push it above $21,800.
This will indicate that sentiment is turning negative and traders are selling rallies if the price falls below this resistance. This could increase the likelihood of the pair breaking below the channel. The selling momentum could pick-up and the pair could fall to the June 18 low of $17,622.
If buyers push the price higher than the 20-day EMA, this will indicate that the pair could extend its stay within the channel for a few days. The bulls will attempt to push the price towards the channel’s resistance line.
Ether ( ETH ) fell below the 20-day EMA ($1,718), and the breakout level $1,700 on August 19, suggesting that traders who purchased at lower levels were leaving their positions.
Bulls tried to stop the fall at the 50-day SMA ($1,549), but the weak bounce from it suggests that there was not much aggressive buying at this level. This raises the possibility of a break below support.
If the ETH/USDT price falls below $1,500, then the selling could get more intense as bulls wait for the price reach the next strong support level before buying again. This could lead to a decline in the pair to $1,280.
However, traders who didn’t buy at the 50 day SMA might buy aggressively if the price rises above its current level. This could increase the price to $2,000.
Binance Coin ( BNB) rebound from the strong support at $275 faces stiff resistance at the $20-day EMA ($301). However, a minor plus is that the bulls are not giving ground to the sellers. This suggests that buyers are expecting the recovery to continue.
The BNB/USDT pair may rally to $338 if the price moves above the 20-day EMA. This level is important to watch because a break or close above it will complete bullish inverse heads and shoulders. This setup has a target pattern of $493.
Bears could try to stop the rally at $420, and again at $460.
If the price falls below $275 and the current level is maintained, it will initiate a head and shoulders pattern. This could lead to a decrease towards the pattern target at $212.
It’s better to wait for one of the patterns to finish before you establish a position, as setups tend to fail more often than not.