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Fed Reserve Decisions and Their Impact on Cryptocurrency
The U.S. Federal Reserve's recent decision not to increase interest rates at their Sep. 20 meeting may have sparked a sell-off in the U.S. equities markets and the cryptocurrency sphere. Jerome Powell, the Fed Chair, acknowledged the challenges in bringing inflation stably down to their 2% target. It's common knowledge that risk assets find it difficult to thrive in a high-interest-rate climate.
This week, both the S&P 500 and the Nasdaq have not performed well, marking a dip of more than 2% and 3%, respectively, whereas Bitcoin (BTC) has managed to stay steady.
Performance of Bitcoin and Other Top Cryptocurrencies
The altcoins have struggled to retain their intra-week gains due to a risk-averse sentiment. However, it is positive to note that Bitcoin and the major altcoins have mostly maintained their vital support levels. The forthcoming price action is key as a fierce battle between the bulls and the bears is expected.
Looking at the charts of the top 10 cryptocurrencies, we can provide an analysis of whether bears will take the lead and pull Bitcoin and significant altcoins lower or whether buyers will regroup and drive prices up.
Our analysis begins with Bitcoin that has been fluctuating between the moving averages lately. This kind of slim-range trading indicates an uncertainty among the bulls and the bears regarding the next big move.
A Closer Look at Bitcoin, Ether, and Other Major Cryptocurrencies
The attempt to keep the BTC/USDT pair above the 20-day exponential moving average ($26,520) suggests that buyers aren't giving up. On the flip side, if the price falls below the 20-day EMA, it's an indication that bears have the upper hand, which raises the possibility of retesting the crucial $24,800 support level.
Conversely, Ether (ETH), turned down from the 20-day EMA ($1,628) on Sep. 20, a signal that the bears are continuing to sell at rallies. Analysis of other major cryptocurrencies like BNB (BNB), XRP (XRP), Cardano (ADA), Dogecoin (DOGE), Solana (SOL), Toncoin (TON), Polkadot (DOT), and Polygon (MATIC) shows similar patterns.
It is important to note that this analysis does not constitute investment advice or recommendations. Each investment and trading move carries risks, and readers should undertake their own research when deciding their course of action.
