Bitcoin is capped at $60K, but LTC, FET, MNT and AAVE show promise
2024.09.01 15:33
Bitcoin (BTC) price has been reeling under selling pressure and is on target to fall by more than 9% this week. Bitcoin has consistently formed lower highs for the past few months, which is a negative sign. This brings the onus on the bulls to defend the support.
The markets are gearing up for a major catalyst in the form of a September rate cut by the United States Federal Reserve. The FedWatch Tool shows a 30% probability of a 50 basis point rate cut on Sep. 18. Some believe that if that happens, risk assets, including Bitcoin could rally.
Crypto market data daily view. Source: Coin360
However, in the meantime, Bitcoin’s weakness has hurt the overall sentiment in the crypto sector. Several altcoins have given back their recent gains, and some have turned lower, indicating a lack of demand from buyers.
Only a handful are showing promise of a recovery in the near term. Will Bitcoin rebound off its nearby support, pulling select altcoins higher? Let’s study the top 5 cryptocurrencies that may participate in a crypto recovery if it happens.
Bitcoin price analysis
Bitcoin’s failure to rise above the moving averages is likely to add pressure and pull the price to the solid support at $55,724.
BTC/USDT daily chart. Source: TradingView
The bulls are expected to guard the $55,724 support with all their might because a break below it could suggest the start of a downward move. The BTC/USDT pair could then plunge to the pivotal support at $49,000.
Time is running out for the bulls. If they want to make a comeback, they will have to swiftly push the price back above the moving averages. The pair may then climb to $65,000 and subsequently to $70,000.
BTC/USDT 4-hour chart. Source: TradingView
The pair has been trading below the 20-exponential moving average on the 4-hour chart, indicating that the bears have the upper hand in the near term. Sellers will try to pull the price to $55,724 and then to $54,000. Buyers are expected to fiercely defend this zone.
The first sign of strength will be a break and close below the 20-EMA. The pair could then rise to the 50-simple moving average. If this level is surpassed, the pair may accelerate toward $65,000.
Litecoin price analysis
Litecoin (LTC) has been in a downtrend for the past several weeks, but the bulls are trying to put in a higher low and a higher high.
LTC/USDT daily chart. Source: TradingView
The moving averages have flattened out, and the RSI is near the midpoint, signaling a balance between supply and demand. Buyers will have to kick and maintain the price above $68 to suggest a potential trend change. The LTC/USDT pair could then climb to $76.
Contrarily, if the price turns down from the 50-day SMA ($66) and breaks below $59, it will suggest that the bears have not given up. That could sink the pair to the crucial support at $55.
LTC/USDT 4-hour chart. Source: TradingView
The bulls are trying to start a recovery, but the bears are posing a strong challenge at $68. Sellers attempted to pull the pair toward $50, but the bulls bought the dips at $59. The flattish moving averages and the RSI near the midpoint do not give a clear advantage to either the buyers or the sellers.
If the price turns up from the moving averages and breaks above $68, it could start the next leg of the up move to $76. On the other hand, a break below the moving averages could pull the pair to $59. The bears will be back in command if the $59 support cracks.
Fetch.ai price analysis
Fetch.ai (FET) rallied above the moving averages on Aug. 23, indicating that the bears are losing their grip.
FET/USDT daily chart. Source: TradingView
The up move turned down from the overhead resistance of $1.51 on Aug. 27 and has dropped to the moving average. This is an essential level for the bulls to defend.
If the price turns up from the moving averages, the buyers will again try to drive the FET/USDT pair above $1.51. If they succeed, the pair will complete a bullish inverse head-and-shoulders pattern. This setup has a target objective of $2.32.
On the contrary, if the price breaks below the moving averages, it will signal a possible range-bound action between $1.51 and $0.70 for some time.
FET/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair has been in a correction, which is finding support at the 61.8% Fibonacci retracement level of $1.05. The bears halted the recovery at the 50-SMA, but the bulls are trying to put in a higher low at $1.12. If the price rises above the 50-SMA, the pair may retest the overhead resistance at $1.51.
Contrarily, if the price turns down from the 50-SMA, it will suggest that the sentiment remains negative, and traders are selling on rallies. The pair may then decline to $1.05.
Related: Bitcoin loses 8.6% in August as September starts with fresh 2-week low
Mantle price analysis
Mantle (MNT) has been trading close to the 20-day EMA ($0.61) for the past few days, indicating a battle between the bulls and the bears.
MNT/USDT daily chart. Source: TradingView
If buyers push and maintain the price above the 20-day EMA, it will suggest the start of a stronger recovery. The MNT/USDT pair may then attempt a rally to the 50-day SMA ($0.68), where the bears could step in. However, if the bulls prevail, the pair is likely to pick up momentum and move toward $0.90.
This optimistic view will be negated in the near term if the price turns down from the current level and breaks below $0.56. That could sink the pair to $0.47.
MNT/USDT 4-hour chart. Source: TradingView
The pair has been stuck inside a tight range between $0.56 and $0.66. The flattish moving averages and the RSI just below the midpoint do not give a clear advantage either to the buyers or the sellers.
If the price remains below the moving averages, the pair could slide to the $0.56 support. Alternatively, a break above the moving averages will clear the path for a rally to $0.66. The next trending move is likely to begin above $0.66 or below $0.56.
Aave price analysis
Aave (AAVE) bounced off the strong support of $118, but the relief rally is facing selling near the 50% Fibonacci retracement level of $133.
AAVE/USDT daily chart. Source: TradingView
The 20-day EMA ($123) is sloping up, and the RSI is just above the midpoint, indicating a minor advantage for the bulls. If the price again rebounds off $118, it will signal that the bulls are trying to flip the level into support. A break and close above $135 will open the doors for a rally to $149.
This positive view will be invalidated in the near term if the price turns down and breaks below $118. The AAVE/USDT pair may then plummet to the 50-day SMA ($109).
AAVE/USDT 4-hour chart. Source: TradingView
The pair reversed direction from the downtrend line and broke below the 20-EMA. The bears will next try to pull the price to $118. This is an essential level for the bulls to defend if they want to resume the up move. If the price turns up from $118 and breaks above $135, it will suggest that the short-term correction may be over.
Instead, if the price continues lower and breaks below $118, it will signal that the bears are in charge. The pair may then drop to $105.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
