Bitcoin (BTC) has managed to climb back above the $60,000 level on September 13, signaling a strong comeback by the bulls. The rally of about 10% this week has helped to turn September’s returns into positive territory.
Investors will be closely watching the upcoming FOMC meeting scheduled for September 18. According to CME Group’s FedWatch Tool, there is a 50% probability of a 50-basis point rate cut. However, if the Federal Reserve decides on a 25-basis point rate cut, it could potentially trigger a negative reaction in the cryptocurrency markets.
Bitcoin’s uncertain short-term price action has not deterred long-term bulls from buying. Business intelligence and software company MicroStrategy has announced that it has acquired 18,300 Bitcoin between August 6 and September 12, increasing its holdings to 244,800 Bitcoin.
The question now is whether Bitcoin can maintain its position above $60,000 and attract further buying. Additionally, investors are curious to see if altcoins will follow Bitcoin’s upward movement. Let’s take a look at the top 5 cryptocurrencies that appear strong on the charts.
Bitcoin’s price analysis shows that it closed above the 50-day simple moving average ($59,693) on September 13, indicating a rejection of the breakdown below $55,724. The 20-day exponential moving average ($58,461) is starting to turn up, and the relative strength index (RSI) is in the positive zone, suggesting that the bulls have the upper hand. If the price finds support at the moving averages, the BTC/USDT pair could rally to $65,000 and then to $70,000. However, a sharp downturn and a break below the 20-day EMA could lead to a tumble to $55,724.
In the 4-hour chart, bears are attempting to stall the recovery near $61,200. If the price turns down and breaks below the 20-EMA, it could indicate that the bulls have given up, potentially pulling the price down to the 50-SMA and subsequently to $55,724. On the other hand, if the price bounces off the 20-EMA, it will signal that minor dips are being bought, improving the chances of a rally above $61,200 and a jump to $65,000.
Moving on to Fetch.ai (FET), the cryptocurrency is forming an inverse head-and-shoulders pattern that could complete on a break and close above $1.51. If this happens, the FET/USDT pair could start a new uptrend with a target of $2.32. However, bears are expected to put up a strong defense at the $1.86 and $2.20 levels. If the price turns down from the overhead resistance and breaks below the 20-day EMA ($1.23), it could indicate range-bound action between $1.51 and $1 for a few days. In the 4-hour chart, the pair has pulled back to the 20-EMA, suggesting that short-term traders are taking profits. A crack below the 20-EMA could lead to a slide to the 50-SMA, while a defense of the 20-EMA could improve the prospects of a rally to $1.51.
Sui (SUI) is attempting to break the lower lows and lower highs sequence, indicating a potential trend change. The 20-day EMA ($0.92) is turning up, and the RSI is near the overbought zone, suggesting that the bulls have the edge. If the price breaks above the $1.11 to $1.18 resistance zone, the SUI/USDT pair could gain momentum and climb to $1.44. However, a sharp downturn from the overhead zone could indicate bearish activity, potentially leading to a slide to the 20-day EMA and later to the 50-day SMA ($0.84). In the 4-hour chart, the bears are expected to mount a strong defense in the $1.11 to $1.18 zone, with the 20-EMA acting as critical support. A rebound off the 20-EMA could increase the chances of a break above the overhead zone, while a break below it could sink the pair to $0.86.
Aave (AAVE) has bounced off the 20-day EMA ($135), indicating a positive sentiment and buying on dips. Buyers will aim to push the price to the overhead resistance of $160, and a break above that level could indicate a resumption of the uptrend with targets at $180 and $200. However, a sharp downturn from the current level or the overhead resistance, breaking below the 20-day EMA, could open the doors for a fall to $118. In the 4-hour chart, the bulls have stalled the pullback at the 50-SMA, indicating buying on dips. Minor resistance is expected at $152, but the next stop is $160. On the downside, a break below $137 could suggest a comeback by the bears, potentially leading to a slide toward $131.
Injective (INJ) has reached the resistance line of a descending channel pattern, which is likely to act as a strong resistance. However, the moving averages are on the verge of completing a bullish crossover, and the RSI is in positive territory, indicating an advantage for buyers. A break above the channel could signal a potential trend change, with targets at $23 and $28. On the other hand, a sharp downturn from the resistance line and a break below the moving averages could indicate a prolonged stay inside the channel. In the 4-hour chart, the pair is gradually approaching the resistance line of the channel, which is expected to pose a strong hurdle. A rebound off the resistance line and the 20-EMA would signal strength and increase the likelihood of a break above the channel. However, a break below the 20-EMA could lead to a slide to the 50-SMA.
Please note that this article is for informational purposes only and should not be taken as financial advice. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.