Bitcoin had been trading below $60,000 before Wednesday afternoon when the Federal Reserve announced that it had lowered interest rate by 50 basis points. The coin, which is the largest by market cap, has surged to $62,965 as of this writing.
Despite the boost from positive macroeconomic factors, Bitcoin may fail to cross the current all-time high ($73,745) in the short term, according to some analysts. For instance, BitMEX co-founder Arthur Hayes says BTC’s price may trend downward over the coming weeks due to uncertainty over presidential elections in the United States.
On the other hand, Capriole Investments CEO Charles Edwards says Bitcoin is prepared to resume its uptrend after the Fed switched to dovish monetary policies.
That said, what resistance levels must we monitor if Bitcoin and other top digital currencies continue trending upward? Let’s study the charts to identify them.
Bitcoin Price Analysis
With Bitcoin now above the resistance line, it means that the bearish setup is no longer valid. The bulls have taken over the market and are aiming to push BTC toward the $65,569 resistance. If they overpower the bears there, a rally to $70,092 is likely. On the other hand, if Bitcoin falls below $60,000, it could head to the 20-day Exponential Moving Average of $58,628 and later to $55,379.
Ethereum Price Analysis
The bulls have pushed Ethereum to $2,432 after defeating the bears at the 20-day Exponential Moving Average of $2,396. If they manage to fuel a move to the 50-day Simple Moving Average of $2,558, the chances of ETH reaching the breakdown level ($2,848) will increase significantly. Meanwhile, the bears must cause a fall below $2,396 to dominate the market. Achieving this will help them pull Ethereum to the $2,108 support or even to $2,000.47, where buying activity could intensify.
Solana Price Analysis
After trading sideways since the start of the week, Solana has crossed the tough resistance at $138.84 to reach $140 at press time. The Relative Strength Index is now in positive territory (60.36), suggesting a further bullish move. If SOL crosses the 50-day Simple Moving Average of $142.48, it’ll signal the beginning of a solid recovery rally, which might meet resistance at $165.42.
Conversely, if the bulls fail to maintain SOL above $138.84, the coin will likely drop below the resistance line, making a move to the $128.89 minor support possible. If $128.89 isn’t protected, Solana might drop to $110.13.
Dogecoin Price Analysis
Dogecoin has crossed the 20-day Exponential Moving Average ($0.1036) to trade at $0.1054 as of this writing. This also means the meme coin no longer trades below the downtrend line. If buying pressure intensifies, a rally to $0.1439 could occur. We don’t anticipate further move from there as the bears will likely find that level perfect for profit booking.
Contrary to our bullish assumption, Dogecoin is expected to head toward $0.0904 or even $0.0810 if the bulls let $0.10 give way.
Cardano Price Analysis
Cardano, which has surged 6.4% today, formed a bearish setup on September 18th. However, after the Fed announced its rate cut, the token rallied to invalidate the setup and now trades at $0.3592. If the bulls keep ADA above $0.3104, they will enhance their chances of pushing the asset to $0.4011 and later to $0.4463.
However, a drop below $0.3104 would mean that sentiment around Cardano has turned negative. As such, a dip to $0.2642 and eventually to $0.2084 could happen.
Avalanche Price Analysis
Avalanche becomes the day’s top performer among the top 15 digital currencies after rallying 14%. Its current price ($26.75) means the bears have failed to guard the 20-day Exponential Moving Average of $23.81. That said, the bulls now stand a chance of thrusting AVAX above $28.16 and later pushing it to $33.20.
On the other hand, if the sellers pull and maintain Avalanche below $23.81, a move to the $21 support or even $19.44 is likely.
