The S&P 500 finds that the minutes of the July meeting of the Federal Reserve Central bank rate hikes continue until inflation subsides. A Fed member said there was no evidence that inflationary pressures appeared to be easing.
Another stimulus came from St. Louis Fed President James Bullard’s statement at the September Fed’s policy meeting that he supported a rate hike of 75 basis points. This has dampened hopes that the era of aggressive rate hikes may be over.
Weaker sentiment sent the S&P 500 down 1.29% in a week. S&P 500, Bitcoin (Bitcoin) also saw a sharp drop on August 19 and could end the week with a big loss.
Will the bulls take advantage of the decline to accumulate at lower levels? If so, let’s examine the charts of the top five cryptocurrencies that could attract buyers for a bullish setup.
Bitcoin broke below the 20-day exponential moving average ($22,864) on Aug. 17 and below the 50-day simple moving average ($22,318) on Aug. 19. channel.
The 20-day EMA is starting to move down and the Relative Strength Index (RSI) is in negative territory, which is in favor of the bears. If the price reverses from the moving averages, it suggests that the bears are selling in a rally.
This could increase the likelihood of a break below the channel’s support line. If so, the critical support zone between $18,626 and $17,622 could come under attack.
To avoid this situation, the bulls should push and sustain the price above the moving averages. The BNB/USDT pair could then rise towards the channel’s resistance line.
Buyers are aggressively defending the channel’s support line, but the falling moving averages and the RSI in negative territory suggest that higher levels are likely to attract selling by the bears.
If the price turns down from the current levels or the 20-EMA, it will likely break out of the channel. In that case, the bearish momentum could pick up and the pair could drop to his $18,626.
The first sign of strength is a breakout of the 20-EMA. Such a move indicates that selling pressure may be waning. This could improve prospects for a move up to the 50-SMA.
Binance Coin (BNB) turned down from the overhead resistance at $338, but the bulls managed to defend the strong support at $275. This points to positive sentiment as the bulls see the drop as a buying opportunity.
The recovery may face resistance at the 20-day EMA ($301). If the price turns down from this level, the bear will try to sink his BNB/USDT pair below $275 again. If that happens, it suggests the pair could oscillate in a wide range between $183 and $338 for some time.
Conversely, if the bulls push the price above the 20-day EMA, the pair can rise to $338. A breakout and close of this level could complete a bullish head and shoulders pattern. This could start a rally to $413 and move the pattern to his target of $493.
The 20-EMA on the 4-hour chart has started to rise and the RSI is near the midpoint, indicating that selling pressure may be easing. If the price rises above the 20-EMA, the pair can move up to the 50-SMA. A breakout of this resistance and a close will increase the likelihood of a rally to $338.
Conversely, if the price turns down and breaks below the 20-EMA, the pair can again drop to the critical support of $275. Below this level, the pair will complete a bearish head-and-shoulders pattern and drop to $240.
Ios It is forming a bullish head-and-shoulders setup. Buyers pushed the price above his overhead resistance of $1.46 on Aug. 17, but the long wick in the candlestick that day indicates strong selling at higher levels.
The bears pushed the price down to the $1.46 breakout level on Aug. 19, but there are positive signs that buyers did not allow the EOS/USDT pair to break below the 20-day EMA ($1.32). This shows that lower levels are attracting buyers.
If the bulls can sustain the price above $1.46, the positive momentum will increase and the pair could move to $1.83. If this resistance also widens, the rally could extend to his pattern target of $2.11.
This positive view may be invalidated if the price turns down and breaks below $1.24. The pair can then drop to his 50-day SMA ($1.17).
A move above $1.46 on August 17 pushed the RSI on the 4-hour chart to significantly overbought levels. This may have encouraged short-term buyers to book profits and the price may have gravitated towards his strong support at $1.24. The bull bought a dip to this level, pushing the pair above his $1.46 overhead hurdle again.
The currency pair can rise to $1.56 and then to the key resistance of $1.83. Alternatively, if the price turns down from the current levels and breaks below the moving averages, it suggests the pair could stay range bound for a few days.
A series of rising highs and lows is represented by Quant (QNT) is in a short-term uptrend. The bulls are looking to buy the drop to his 50-day SMA ($100) and resume the rally.
If the price sustains above the 20-day EMA ($111), it suggests the correction may be over. may retest any resistance. If the bulls clear this hurdle, the pair could rise to the overhead resistance zone of $154-$162.
Contrary to this assumption, if the price fails to sustain above the 20-day EMA, it indicates that traders may close their positions on the upside. The price needs to drop below $98 for the bears to gain the upper hand and signal the start of a deeper correction to $79.
The pair is fixed in a descending wedge pattern. Buyers pushed the price above the resistance line of the pattern but failed to sustain the breakout. This suggests that bears are operating at a higher level.
If the price breaks below the 50-SMA, the pair can drop to the 20-EMA. This is an important level to pay attention to. A rebound from this level suggests that the short-term trend has turned in favor of buyers.
A breakout and close above $118 could indicate the end of the correction phase. Conversely, if the price breaks below the 20-EMA, the pair can drop to $100.
Chiliz (CHZ) surged to $0.23 on Aug 18, pushing the RSI into overbought territory. This may have pushed the short-term trader to book a profit and the price may have dipped below his $0.20 breakout level.
A minor positive is that the bulls are trying to defend the 20-day EMA ($0.17) and push the price above $0.20. If they succeed, the sentiment remains positive, suggesting traders are buying on the downside. If the bulls clear this hurdle, the CHZ/USDT pair can gain momentum and move to $0.26.
Contrary to this assumption, if the price does not break above $0.20, it suggests that the bears are selling in a rally. The bears will get back in the driver’s seat if the pair breaks below his 20-day EMA. After that, the pair could fall to the 50-day SMA ($0.13).
The bulls are trying to defend the uptrend line, but the recovery faces strong resistance at the moving averages. The moving averages have completed a bearish crossover on the 4-hour chart, and the RSI is in negative territory Yes, indicating a slight advantage for sellers.
If the price breaks down and breaks out of the uptrend line, selling will intensify and a fall to $0.16 and possibly to $0.14 is possible. A move like this shows that the bears are in control.
Alternatively, if the price breaks out of the moving averages, the bulls will try to push the pair to $0.21 before challenging the $0.23 resistance.
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