Bitcoin Price Analysis
The price of Bitcoin (BTC) continues to hover around $26,000, indicating a lack of increased demand during the decline. Historically, when Bitcoin fails to recover rapidly after a major sell-off, it tends to move sideways or downwards. The current news flow surrounding cryptocurrencies is unfavorable. This raises the question of potential price movements for three popular cryptocurrencies.
Overview
Following the conclusion of the Jackson Hole event, Chairman Powell’s highly anticipated speech had minimal impact on Bitcoin’s price, only resulting in a slight movement of a few hundred dollars. Powell, who had previously indicated that inflation was transitory and would decrease rapidly in 2021, appears to have adopted a more cautious stance after two years. His acknowledgment of persistent strong inflation and the possibility of further interest rate hikes could lead to surprising market dynamics, potentially impacting cryptocurrencies.
Price Trends
Bitcoin’s price has maintained a largely sideways trajectory since August 18. It has found support around the $25,136 level. For a trend reversal, a series of convincing 4-hour closes above the $26,726 mark are required. If this occurs, the target price could be set at $29,000 once again. Conversely, a continued decline that breaks the support level might trigger additional selling, potentially leading to a drop to $22,000 and subsequently $24,800.
The medium-term range observed on the weekly chart remains intact. The price currently rests on the support line and has traded within this range since the week of March 20. A breakout above $32,000 could signify the end of the downtrend within the ongoing bull market. While a downside break carries some risk, the likelihood of an upward movement seems more favorable, given the price’s recovery from the FTX crash.
Polkadot (DOT) Analysis
Polkadot (DOT) has been confined to a narrow price range between $4.22 and $4.56 over recent days. This indicates that while bulls have successfully defended the $4.22 support, breaking above the $4.56 resistance has proven challenging.
One positive aspect favoring the bulls is the relatively small retreat from the overall resistance level. This enhances the probability of a breakout above this resistance. If successful, the DOT/USDT pair could see a rise towards the 20-day EMA ($4.68) and potentially target the $5 breakout level.
Polygon (MATIC) Analysis
Polygon (MATIC) is gradually approaching the critical support level at $0.51, indicating sustained bearish pressure. A breach of this level could accelerate selling momentum, possibly leading to a drop to $0.45. On the upside, a crucial resistance to monitor is at $0.60. Surpassing this obstacle could pave the way for a recovery towards the 50-day SMA ($0.68).
