Bitcoin (BTC) reclaimed the $ 60,000 mark on September 13, marking a strong comeback for bulls. Bitcoin's roughly 10% gain this week helped buyers turn September gains into positives.
Next week, investors will focus on the FOMC meeting scheduled for September 18. CME Group's FedWatch tool shows a 50% chance of a 50 basis point rate cut. However, if the Federal Reserve cuts by 25 basis points, the cryptocurrency market could see an immediate bearish reaction.
Daily Cryptocurrency Market Overview Data. Source: Coin360
Bitcoin ’s short-term price action hasn’t shaken the confidence of long-term investors. Business analytics and software company MicroStrategy announced that it purchased an additional 18,300 Bitcoins between August 6 and September 12 at an Medium price of $60,408 per coin, including costs and fees. This brings the company’s total Bitcoin holdings to 244,800 Bitcoins, purchased at an Medium price of $38,585.
Can Bitcoin sustain above $60,000, attracting further buying? Will altcoins follow Bitcoin’s rally? Let’s take a look at the top 5 cryptocurrencies that look strong on the charts.
Bitcoin Price Analysis
Bitcoin closed above the 50-day simple moving Medium (SMA) ($59,693) on September 13, indicating that the market rejected the downside below $55,724.
BTC/ USDT daily chart. Source: TradingView
The 20-day exponential moving Medium (EMA) ($58,461) has started to turn up and the relative strength index (RSI) is in the positive zone, suggesting that bulls have the upper hand. If the price sustains above the moving Medium , the BTC/ USDT pair could recover to $65,000 and then $70,000.
This bullish view will be rejected if the price declines sharply and breaks below the 20-day EMA. The pair could fall to USD 55,724. Repeated tests of a support level tend to weaken it, opening the doors for a drop to USD 52,500.
BTC/ USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are trying to stall the recovery near the $61,200 level. If the price turns around and breaks below the 20-EMA, it will indicate that the bulls have given in. That could drag the price down to the 50-SMA and then to $55,724.
Conversely, if the price bounces off the 20 EMA, it would indicate that any minor dips are being bought in. That would improve the prospects for a rally above USD 61,200, and the pair would then jump to USD 65,000.
Fetch.ai Price Analysis
Fetch.ai (FET) is forming an inverse head and Vai pattern, which will complete on a break and close above the $1.51 level.
FET/ USDT daily chart. Source: TradingView
If that happens, the FET/ USDT pair could start a new uptrend. The bullish reversal pattern target is USD 2.32. However, the journey will not be easy as the bears are expected to offer strong support at USD 1.86 and USD 2.20.
Contrary to this assumption, if the price turns around from the resistance above and breaks below the 20-day EMA (USD 1.23), it will indicate a range- bound price action between USD 1.51 and USD 1 for the next few days.
FET/ USDT 4-hour chart. Source: TradingView
The pair has retreated to the 20 EMA, suggesting that short-term traders are booking profits near USD 1.51. A break of the 20 EMA would indicate that the bulls are in a hurry to exit. The pair could slide to the 50 SMA. This is a crucial level that the bulls need to defend as a break below this level could sink the pair to USD 1.
If the bulls want to hold on to their advantage, they will have to defend the 20-EMA and quickly push the price above USD 1.45. If that happens, the pair could rise to USD 1.51.
Sui Price Analysis
The bulls are attempting to break the lower price chain in Sui (Sui), indicating a trend change.
Sui/ USDT daily chart. Source: TradingView
The 20-day EMA ($0.92) has started to turn up and the RSI is near the overbought zone, suggesting that the bulls have the upper hand. If buyers push the price above the resistance zone between $1.11 and $1.18, the Sui/ USDT pair could gain momentum and climb to $1.44.
Conversely, if the price turns sharply from the upper zone, it will indicate that the bears are still active at higher levels. The pair could then slide towards the 20-day EMA and then the 50-day SMA (USD 0.84).
Sui/ USDT 4-hour chart. Source: TradingView
Bears are expected to mount a strong defense in the $1.11 to $1.18 range. On the downside, the 20 EMA is an important support level to watch out for. If the price bounces off the 20 EMA, the chances of a breakout above the range will increase.
Conversely, if the price turns around and breaks below the 20 EMA, this will indicate profit-taking by short-term traders. The pair could then slide towards the 50 SMA. A break below this support level could sink the pair to USD 0.86.
AAVE Price Analysis
AAVE (AAVE) bounced off the 20-day EMA ($135), suggesting that the sentiment has turned positive and traders are buying on dips.
AAVE/ USDT daily chart. Source: TradingView
Buyers will try to push the price towards the overhead resistance of USD 160. A break and close above USD 160 will indicate the continuation of the uptrend. The AAVE/ USDT pair could rise towards USD 180 and then USD 200.
This bullish view will be invalidated in the short term if the price turns sharply from the current level or the overhead resistance and breaks below the 20-day EMA. That could open the doors for a drop to USD 118.
AAVE/ USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls have stalled the pullback at the 50 SMA, indicating buying on dips. There is minor resistance at USD 152, but it is likely to be crossed. The next stop is USD 160, where the bears will again try to stall the rally.
Conversely, if the price turns around from the current level and breaks below USD 137, it will suggest that bears are trying to make a comeback. The pair could then fall towards USD 131.
Injective Price Analysis
Injective (INJ) has reached the resistance line of the falling channel pattern, which is likely to be a stiff resistance level.
INJ/ USDT daily chart. Source: TradingView
The moving Medium are about to complete a bullish crossover and the RSI is in the positive zone, indicating an advantage for buyers. A break and close above the channel would signal a potential trend change. The INJ/ USDT pair could rise to USD 23 and then USD 28.
Conversely, if the price turns sharply from the resistance line and breaks below the moving Medium , this will indicate that the pair could continue inside the channel for some more time.
INJ/ USDT 4-hour chart. Source: TradingView
The pair has been gradually moving towards the resistance line of the channel, which is expected to be a strong barrier. If the price turns around from the resistance line but bounces back from the 20 EMA, it will signal strength. This will increase the possibility of a breakout above the channel. The bears could again pose a strong challenge at USD 23, but this level is likely to be breached.
If the bears want to stall the gains, they will have to pull the price below the 20 EMA. The pair could then slide towards the 50 SMA.
