On August 27, United States Federal Reserve Chair Jerome Powell stated that the central bank would begin tapering its $120 billion monthly bond purchases by the end of the year. Still, interest rate hikes will have to wait until the job market and inflation passes a more stringent test.
In response to the speech, the US dollar index (DXY) plummeted, the S&P 500 index jumped to a new all-time high, and Bitcoin (BTC) increased by almost $1,500 in less than an hour. Analyst Ryan Clark says the current Bitcoin consolidation is identical to the one that occurred below $24,000 before the December 2020 breakthrough. Will Bitcoin’s consolidation below $50,000 entice investors to buy altcoins? Let’s look at the charts of the top five cryptocurrencies that could outperform in the following days.
BTC/USDT
On August 27, Bitcoin rallied off the 20-day exponential moving average ($46,823), but the bulls have yet to lift the price above the overhead resistance zone of $50,000 to $50,500. It shows that bears have not yet given up the price drops from their current level and fall below the 20-day EMA, suggesting that short-term traders are profiting. The cost may be reduced to $43,927.70, then to $42,451.67.
If the price increases from its current level or bounces off the 20-day EMA, the bulls will try to push it back over the overhead zone. If they are successful, the two may be able to start their journey toward $60,000.
ADA/USDT
Cardano (ADA) is now trading between $2.97 and $2.47 per token. The price had fallen to the breakthrough level of $2.47 on August 26, but the rapid rebound on August 27 indicates that bulls have switched the level into support. A consolidation near the all-time high is a good indication since it demonstrates that traders still buy on dips. The ADA/USDT pair could restart its ascent if buyers drive and sustain the price above the psychological barrier of $3. On the upside, the next goal is $3.50. A big bounce off this support level might keep the pair range-bound between $2.47 and $2.97 for the foreseeable future. The bears must lower the price below the $2.47 to $2.31 support zone to gain the upper hand. Alternatively, if bulls drive and sustain the price over $2.97, the upswing may restart.
LUNA/USDT
The Terra protocol’s LUNA token is on an upward trend. The price bounced off the 20-day EMA ($26.42) after a few days of consolidation on August 27.
The extended wick on today’s candlestick, on the other hand, suggests that bears are actively defending the overhead resistance. If the price falls below $32, the pair may fall to the 20-day moving average. Alternatively, if the price breaks below the moving averages, the team may fall below the triangle’s support line. A break and close below this support level indicate that the bears have triumphed over the bulls. The duo might then fall back to the $22.40 to $20.81 support range.
VET/USDT
VeChain (VET) has formed a pennant after a rapid recovery from its recent lows of $0.05 on July 21. After the price breaks above or below the pattern, this setup will be complete. A breakout and closure above the pennant’s resistance line will suggest that the uptrend has resumed.
The VET/USDT pair could rally to $0.19. If the price falls below the pennant’s support line, the bullish view will be invalidated.
XTZ/USD
When the price of Tezos (XTZ) broke and closed above the overhead resistance at $4.47, it completed a rounded bottom pattern. It implies the beginning of a new upswing with a pattern objective of $6.85. After the price breaks out of a setup, it usually retests the breakout level. In this event, the XTZ/USDT pair might go as low as $4.47. If bulls convert this level to support, it will signal the beginning of a new rally. A rising 20-day EMA ($4.25) and an RSI in the overbought zone suggest a buyer’s advantage.
In contrast, if the price decreases from its current level and falls below the 20-day EMA, it suggests that supply outnumbers the demand.
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