Bitcoin, Altcoins Sell-off Ahead Of Fed FOMC Presser on Interest Rates

Key points:

Bitcoin’s failure to rise above $118,000 may have attracted profit-booking by short-term traders, resulting in a drop toward $107,000.

Several major altcoins turned down from their overhead resistance levels, signaling that the bears remain sellers on rallies.

Bitcoin (BTC) bulls are attempting to sustain the price above $111,000, but the bears have continued to exert selling pressure. Glassnode wrote in its latest Weekly Market Impulse report that BTC’s recent recovery was not supported by increased participation, signaling a “potential consolidation phase.”

A slightly cautious view came from crypto market intelligence company 10x Research, which said that BTC’s current bull market cycle may not get extended beyond the traditional four-year cycle, as BTC has become too expensive for sustained retail purchases. The company projected a cycle top of $125,000 based on their research methodology.

BTC remains stuck inside the large range, but a minor positive in favor of the bulls is that investors continue to buy spot BTC exchange-traded funds. According to Farside Investors’ data, the BTC ETFs have recorded net inflows of $462.6 million over the past four days.

What are the critical support and resistance levels to watch for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC’s failure to stay above the 50-day simple moving average ($114,278) attracted sellers, pulling the price below the 20-day exponential moving average ($112,347).

If the price closes below the 20-day EMA, the bears will try to yank the BTC/USDT pair to the critical support at $107,000. Buyers are expected to defend the $107,000 level with all their might, as a break below it will complete a double-top pattern. The Bitcoin price may then slump to $100,000.

The $118,000 level is a key resistance to watch on the upside. A break and close above it could propel the pair to the all-time high of $126,199.

Ether price prediction

Ether (ETH) turned down from the 50-day SMA ($4,220) on Monday, indicating that the bears are active at higher levels.

Sellers are attempting to pull the price to the support line of the descending triangle pattern, which is a critical level to watch out for. A break and close below the support line could sink the Ether price to $3,350. 

The bulls will have to push the price above the 50-day SMA to signal strength. The ETH/USDT pair could then climb to the resistance line, where the sellers are likely to pose a strong challenge. Buyers will have to overcome the barrier at the resistance line to signal the start of the next leg of the up move.

BNB price prediction

BNB (BNB) turned down from the 38.2% Fibonacci retracement level of $1,156 on Monday, but a minor positive is that the bulls defended the 50-day SMA ($1,076) on Tuesday.

The flattish 20-day EMA ($1,119) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price turns down and breaks below the 50-day SMA, it signals the start of a deeper correction to $1,021 and later to $932. Such a move suggests that the BNB/USDT pair may have topped out in the near term.

Conversely, a break and close above $1,156 indicates strong buying at lower levels. The BNB price may then surge to the 61.8% retracement level of $1,239.

XRP price prediction

XRP (XRP) has been trading between the breakdown level of $2.69 and the 20-day EMA ($2.56) for the past few days.

The tight range trading is likely to be followed by a range expansion. If the price turns down and breaks below the 20-day EMA, it suggests that the bears have overpowered the bulls. The XRP price could then drop to $2.20.

On the contrary, a break and close above $2.69 could propel the XRP/USDT pair to the downtrend line. Sellers are expected to vigorously defend the downtrend line, as a break above it opens the gates for a rally to $3.20 and then $3.38.

Solana price prediction

Buyers pushed Solana (SOL) above the 20-day EMA ($196) on Sunday but are struggling to sustain the higher levels.

The flattish 20-day EMA and the RSI near the midpoint signal a balance between supply and demand. If the price closes above the 20-day EMA, the SOL/USDT pair could rise to the resistance line. Buyers will have to push the price above the resistance line to gain strength.

Alternatively, if the price turns down and breaks below $190, it suggests that the bears are in control. The pair could then descend to $177 and eventually to the support line of the channel.

Dogecoin price prediction

Dogecoin (DOGE) turned down from the $0.21 overhead resistance on Monday, signaling that the bears are aggressively defending the level.

The bears will try to build upon their advantage by pulling the Dogecoin price below the $0.17 level. If they manage to do that, the DOGE/USDT pair could decline to the critical support at $0.14. Buyers are expected to defend the $0.14 level with all their might, as a break below it would clear the path for a retest of the $0.10 level.

The first sign of strength will be a close above $0.21. If that happens, the pair could rise to the 50-day SMA ($0.23) and later to $0.27.

Cardano price prediction

Cardano (ADA) turned down from the 20-day EMA ($0.68) on Monday, indicating that the sentiment remains negative.

The bears will attempt to sink the Cardano price below the $0.59 support. If they can pull it off, the ADA/USDT pair could plunge toward the vital support at $0.50. Buyers are expected to fiercely defend the $0.50 level.

On the upside, a break and close above the 20-day EMA signals that the bulls are attempting a comeback. The pair could then rally to the breakdown level of $0.75 and subsequently to the downtrend line.

Related: Bitcoin slips at $113K as S&P 500 hits new all-time high into Fed rate move

Hyperliquid price prediction

Buyers have maintained Hyperliquid (HYPE) above the 50-day SMA ($45.95), indicating strength.

Buyers will attempt to strengthen their position by pushing the Hyperliquid price above the $51.50 overhead resistance. If they manage to do that, the HYPE/USDT pair could retest the all-time high at $59.41.

Sellers are likely to have other plans. They will try to defend the $51.50 level and pull the price below the 20-day EMA ($42.64). If they succeed, the pair could plummet toward the crucial support at $35.50.

Chainlink price prediction

Chainlink (LINK) turned down from the 20-day EMA ($18.52), indicating that the bears are selling on rallies.

The bears will attempt to pull the Chainlink price to $16.71 and then to the strong support at $15.43, where the buyers are expected to step in. 

Contrarily, if the price turns up from the current level and breaks above the 20-day EMA, it suggests that the selling pressure is reducing. The LINK/USDT pair could then rally to the resistance line. Buyers will have to push and maintain the price above the resistance line to signal that the correction may be over.

Bitcoin Cash price prediction

Bitcoin Cash (BCH) has reached the resistance line of the falling wedge pattern, where the bears are posing a strong challenge.

The upsloping 20-day EMA ($527) and the RSI in the positive territory indicate the path of least resistance is to the upside. A close above the resistance line opens the doors for a rally to $615 and then $651.

Sellers will have to swiftly pull the Bitcoin Cash price back below the 20-day EMA to regain control. The BCH/USDT pair could then fall toward the strong support at $450.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.