Bitcoin (BTC) experienced a drop below $63,000 on September 22, which may be attributed to profit booking by short-term traders. However, analysts believe that Bitcoin could undergo a minor consolidation before attempting to break the important overhead resistance at $65,000.
Despite short-term uncertainties, analysts remain bullish on Bitcoin’s long-term prospects. Geoff Kendrick, the global head of digital assets research at Standard Chartered, expects Bitcoin to reach $200,000 by the end of 2025. Kendrick points to positive inflows into Bitcoin exchange-traded funds, a slight increase in inflation, and the likely removal of Staff Accounting Bulletin-121 as major triggers for Bitcoin’s rally. This rule effectively prevents banks from holding digital assets for clients.
Bitcoin’s recovery has also led to increased buying in select altcoins, as they have broken through their respective overhead resistance levels. If Bitcoin consolidates around its current levels, traders may shift their focus to altcoins.
In terms of Bitcoin price analysis, the recovery is facing profit booking near $64,000, indicating that the bulls are cautious about continuing their purchases close to the overhead resistance at $65,000. The BTC/USDT pair could correct to the 20-day exponential moving average ($60,232), which is an important level to monitor. A rebound from this level would increase the chances of a rally above $65,000 and potentially push the pair towards the strong overhead resistance at $70,000. Conversely, a break below the moving averages would indicate a rejection of higher levels and could lead to a decline towards the support line.
For Avalanche (AVAX), the altcoin broke and closed above a descending channel pattern on September 19, signaling a potential trend change. The bears are attempting to halt the recovery at the breakdown level of $29. However, if the price finds support at the 20-day EMA ($24.81), it would suggest that the bulls are trying to take control. In this case, the AVAX/USDT pair could gain momentum above $29 and potentially reach $33. On the other hand, a break below the moving averages would indicate a range-bound movement between $19.50 and $29.
Sui (SUI) broke above the $1.44 overhead resistance on September 20, but higher levels are attracting selling. If the price rises above $1.58, it would indicate that the bulls have established support at the $1.44 level and could lead to a rally towards $1.72. However, if the price remains below $1.44, a correction towards the 50% Fibonacci retracement level of $1.29 is possible, followed by a potential drop to the 20-day EMA ($1.15).
Bittensor (TAO) broke above the $361 overhead resistance on September 19, completing a triple bottom pattern. The rally may face selling near $490 and $530, but if the bulls maintain their ground, the TAO/USDT pair could continue its upward movement towards $517 and potentially surge to $640. On the downside, the first support is at the 38.2% Fibonacci retracement level of $401, followed by the 50% retracement level of $378. A break below $378 could lead to a retest of the breakout level at $361.
Aave (AAVE) closed above the $154 overhead resistance on September 21, but the bulls are struggling to sustain higher levels. If the price falls below the breakout level, the AAVE/USDT pair could slide towards the 20-day EMA ($142). However, a strong bounce off the 20-day EMA would indicate positive sentiment and could lead to another attempt to break the overhead hurdle at $154, pushing the pair towards $180 and $200. On the 4-hour chart, the pullback is expected to find support at the 20-EMA, and a rebound from this level could increase the likelihood of the uptrend continuing towards $180. However, a break below the 20-EMA would suggest a deeper correction towards the 50-SMA, with the bulls aiming to defend this level to prevent a further drop to $134.
It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.