Uncertainty about the upcoming Federal Reserve rate hike is putting pressure on bitcoin and altcoins. This could change if the expected 0.75% basis point increase is chosen.

U.S. equity and crypto markets will remain volatile for the foreseeable future as traders fret about the size of the next Federal Reserve rate hike on September 20 and 21. While most favor a 75 basis point rate hike, some analysts are expecting a 100 basis point rate hike for the first time since the early 1980s, according to the CME FedWatch Tool.

Many are waiting for bitcoin
BTC

way down
$16,478

It will continue to decline and fall below the June lows in the future. Although anything is possible in the markets, most of the time markets are not liked by the majority. If the Fed does not surprise the markets, traders who are cautious and sit on the sidelines could quickly bounce back, leading to a short-term recovery.

Daily indicators of the cryptocurrency market. Source: Coin360
Bear markets offer investors an opportunity to save money in the long run. It is useless to catch the bottom, so traders can start saving in times of extreme pessimism. A strong stomach is essential to overcome volatility, but those who do are likely to reap the rewards when the next bull run begins.

Could Bitcoin and altcoins come back or could a deeper drop be possible? Let’s examine the charts of the top 10 cryptocurrencies to find out.

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Bitcoin/US dollar
Bitcoin has been in a strong downtrend for several months. Buyers began to recover from the June low of $17,622 and pushed the price above the 200-week simple moving average (SMA) but failed to hold higher.

Weekly BTC/USDT chart. Source: Trading View
Last week, the bulls again tried to push the price above the 200-week SMA, but the bears held their positions. This shows that the bears are vigorously defending the 200-week SMA. Thus, this level becomes an important resistance to keep an eye on when moving up.

On the other hand, the bulls are expected to aggressively defend the support at $17,622. The first sign of strength will be a breakout and close above $20,000. This suggests a move in the range of $17,622 to $25,211 for the BTC/USDT pair.

A trend change signal will be given after buyers push the price above $25,211. Later, the pair could rise to $32,000.

Conversely, if the bears fall and keep the price below $17,622, it could signal a resumption of the downtrend. The pair could drop to $14,000 later.

ETH/USDT
The bears have defended the 20-week exponential moving average (EMA) ($1,732) for the past few weeks. It’s an emotion on the air
Ethereum

way down
$1212

continues the bearish trend, and traders sell on the rise.

Weekly ETH/USDT chart. Source: Trading View
The ETH/USDT pair fell sharply from the 20-week EMA last week and hit the 200-week SMA ($1283). Buyers are expected to defend this level strongly.

The bulls will have to push and hold the price above the 20-week EMA to show that the bears may lose their grip. A break above $2030 could signal a potential trend reversal. Until then, bears are likely to sell on every rally.

If the price breaks below the 200-week SMA, selling could intensify and the bears will try to bring the price back to the June low of $881. This is an important level for bulls to protect, as a break below this level could lead to panic selling.

BNB/USDT
BNB is one of the best among major cryptocurrencies as it trades well above its 200-week SMA ($175). Buyers pushed the price above the 20-week EMA ($295) but failed to build on that strength. The bears halted the recovery at $338 and pulled the price below the 20-week EMA.

Weekly BNB/USDT chart. Source: Trading View
Since then, the bears have blocked several bullish attempts to push the price above the 20-week EMA. This indicates that the bears are selling the rally towards the 20-week EMA. The bears will try to push the BNB/USDT pair towards the 200-week SMA, which is likely to attract strong buying from the bulls.

The first sign of strength will be a break above the 20-week EMA. This could pave the way for $338 to be retested. The bulls will have to overcome this common obstacle to suggest the start of a new upward movement.

XRP/USDT
Ripple (XRP) has been consolidating in a downtrend over the past few weeks. Last week, buyers tried to push the price above the $0.41 resistance range, but the bears succeeded.

Source: CoinTelegraph

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