Federal Reserve Chair Jerome recently stated that the central bank will begin to reduce its $120 billion monthly bond purchases by the end of the year.
Federal Reserve Chair Jerome recently stated that the Central bank will begin to narrow its $120 billion monthly bond purchases by the end of the year, but the interest rates increase will need to be halted up until the job market and inflation pass a stricter test.
Due to this the U.S index (DXY) fell, the S&P 500 index increased to a new record and Bitcoin (BTC) increased about $1,500 within an hour. This indicated the market participants saw the speech as “peaceable”. According to analyst Ryan Clark the present consolidation in Bitcoin is somewhat same to the one seen under $24,000 before the breakout in December 2020, but TraderXO believes that BTC may correct to the $39,000 the to 42,000 zone to September.
Bitcoin rebounded off the 20-day exponential moving average ($46,823) on Aug. 27 but the bulls have not been able to increase the price above the overhead resistance zone at $50,000 to $50,500. This means that bears have not decided to quit just yet. If the price goes down from the present level and goes under the 20-day EMA it means that the short-term traders are booking profits. This may pull the price down to $43,927.70 and then to $42,451.67. if the price rebounds off this support, the BTC/USDT pair may end up being range-bound between $42,451.67 and $50,500 for a few more days.
However, if the price changes from the present level or rebounds off the 20-day EMA, the bulls will try to push the price above the over head zone. If they can handle that, the pair may try to reach its goal of $60,000. The moving averages on the 4-hour chart have dropped out and the relative strength index (RSI) is close to the midpoint, pointing out a range-bound action in the near term. The price may remain stuck between $46,200 and $49,500 for some time.
If bulls can increase the price above $49,500, the pair may challenge the $50,000 resistance. A breakout and close above this level mean the beginning of the next part of the uptrend. But if the bears decrease the price below $46,200 the pair may drop to $44,000.
Cardano (ADA) is currently linking between $2.97 and $2.47. The price decreased down to the breakout level at $2.47 on Aug. 26 but it bounced off on Aug. 27 and this suggests that bulls have changed the level into support.
A consolidation near the record high is a positive attribute as it depicts those traders continue to buy on dips. Both the moving averages are increasing and the RSI is near the overbought territory, pointing out that the path of least resistance is to the upside. If the buyers drive and sustain the price higher than the psychological disruption at $3, the ADA/USDT pair can continue its uptrend. The next target objective on the upside is $3.50. nonetheless, if the price decreases down from the $2.97 to $3 resistance zone, the pair may extend its saty inside the range for a few more days. The RSI on the 4-hour chart has created a negative distraction, pointing out that the upward momentum may be slowing down. If bears pull and sustain the price below the 50-simple moving average, the pair may decrease down to $2.47. The bears might have to sink the price down the $2.47 to $2.31 support zone to get ahead of the race. However, at the end this uptrend may continue if bulls drive and sustain the price higher than $2.97.