Bitcoin Recovery Faces Selling Pressure Above $27,000 as Investors Await Clarity

Long-term Investors Continue to Accumulate Despite Nervousness

Bitcoin's recovery is facing selling pressure above $27,000 as investors show nervousness ahead of the Federal Reserve's meeting on September 20. Despite this short-term uncertainty, long-term investors remain unfazed and have continued to accumulate Bitcoin. Data from Glassnode reveals that Bitcoin's inactive supply has reached all-time highs since July.

Institutional Activity Shows Decreased Crypto Exposure

While long-term investors remain bullish, institutional activity tells a different story. Investors have reduced their cryptocurrency exposure and are waiting on the sidelines for more regulatory and macroeconomic clarity. CoinShares, an asset manager, reported outflows of $455 million from exchange-traded products in the past nine weeks.

Analysts Divided on Bitcoin's Price Action

Analysts have conflicting opinions on Bitcoin's near-term price action. John Bollinger, the creator of Bollinger Bands, speculated in a post on X (formerly Twitter) that Bitcoin may experience an up-move, but it's still too early to say for sure.

Increased Volatility Expected after Fed Chair's Press Conference

Volatility in the market could increase after the press conference by Federal Reserve Chair Jerome Powell. Traders are advised to be cautious and not get caught in a bull or bear trap. It is recommended to wait on the sidelines and enter the market after the volatility subsides and a clear directional move is established.

Important Levels to Watch in Bitcoin and Major Altcoins

Let's take a look at the charts of the top 10 cryptocurrencies to identify the key levels to watch.

Bitcoin Price Analysis

Bitcoin is currently facing strong resistance at the 50-day simple moving average ($27,154), indicating the bears' attempt to halt the recovery. However, the upsloping 20-day exponential moving average ($26,499) and the positive relative strength index (RSI) suggest that the bulls are in control. A rebound off the 20-day EMA could enhance the prospects of a rally above the 50-day SMA, potentially pushing the BTC/USDT pair to $28,143. Conversely, a break below the 20-day EMA could indicate bearish activity and lead to selling pressure, with a potential drop towards the crucial support at $24,800.

Ether Price Analysis

Ether has been maintaining its position above the breakdown level of $1,626, but the bulls have failed to capitalize on this strength. The presence of selling by bears at higher levels is shown by the long wick on the Sep. 18 and 19 candlestick. The flattish 20-day EMA ($1,637) and the RSI just below the midpoint indicate a balance between buyers and sellers. A rally above $1,680 could give the advantage to the bulls, with a potential rise to $1,745. On the other hand, a slide below $1,600 would suggest that bears are still active and could push the price down to $1,530.

BNB Price Analysis

Buyers of BNB have attempted to break above the overhead resistance at $220, but the bears have successfully defended this level. The fact that the price has not dipped below the 20-day EMA ($215) indicates that the bulls are buying minor dips in anticipation of the up-move continuing. Clearing the zone between $220 and the 50-day SMA ($223) could trigger a rally towards $235. However, if the bears manage to push the price below the 20-day EMA, it could keep the price range-bound between $203 and $220.

XRP Price Analysis

XRP rose and closed above the 20-day EMA ($0.50), indicating that the bulls have the upper hand. Staying above the 20-day EMA suggests that the bulls are attempting to turn this level into support, potentially leading to a rise to the overhead resistance at $0.56. The price action in recent days shows signs of forming a bullish ascending triangle pattern, which would be confirmed by a break and close above $0.56. Buyers will need to ensure that the price stays above the uptrend line to safeguard this setup.

Cardano Price Analysis

Cardano has been testing the 20-day EMA ($0.25) as the bulls aim to push the price above this level. The flattening 20-day EMA and the RSI just below the midpoint indicate a balance between supply and demand. Sustaining the price above the 20-day EMA could trigger a rally to the overhead resistance at $0.28. Alternatively, a sharp downturn from the current level would signal that the bears are selling on relief rallies. Breaking and closing below the $0.24 support would confirm the start of the next leg of the downtrend, with the next support at $0.22.

Dogecoin Price Analysis

Dogecoin has been trading near the 20-day EMA ($0.06) as the bears aggressively defend this level. The fact that the bulls have not allowed the price to dip below $0.06 indicates their attempts to clear the overhead hurdle. If the 20-day EMA is breached, the DOGE/USDT pair could climb to $0.07 and later to $0.08. However, a sharp downturn from the current level would indicate negative sentiment and potential selling on rallies. The bears would then aim to push the price below $0.06 and challenge the critical support at $0.055.

Solana Price Analysis

Solana struggled to rise above the 20-day EMA ($19.55) for several days but finally surpassed this obstacle on Sep. 18. The flattening 20-day EMA and the RSI just above the midpoint suggest that the bears may be losing their grip. Buyers will attempt to push the price to the 50-day SMA ($21.14) and the overhead resistance at $22.30. However, this level is likely to attract strong selling by the bears. This positive view would be invalidated if the SOL/USDT pair turns down and falls below $18.50, potentially leading to a retest of the strong support at $17.33.

Toncoin Price Analysis

Toncoin is currently in a strong uptrend, with the bulls attempting to push the price above $2.59. However, the bears have resisted this advance. Despite facing selling pressure, the bulls have not given up, indicating their confidence in another leg higher. If the TON/USDT pair breaks above $2.59, it could reach $2.90 and eventually $3.28. The upsloping moving averages favor the buyers, but the overbought level on the RSI suggests a possible correction or consolidation in the short term. The first support to watch is at $2.25, followed by $2.07.

Polkadot Price Analysis

Polkadot's bulls are struggling to push the price above the breakdown level of $4.22, suggesting waning demand at higher levels. The bears will try to gain strength by pushing the price below the immediate support at $4. If successful, the DOT/USDT pair could see a slide to the crucial support at $3.90. Breaking and closing below this level may mark the start of the next leg of the downtrend. On the other hand, a turnaround from the current level and a rise above the $4.22-4.33 resistance zone could trigger short covering. The pair could first reach the 50-day SMA ($4.50) and then climb to the downtrend line.

Polygon Price Analysis

Polygon rose and closed above the 20-day EMA ($0.54) on Sep. 19, indicating an attempt at a comeback by the bulls. However, the 20-day EMA may provide challenging resistance. If the bulls can maintain the price above this level, the MATIC/USDT pair could climb to the overhead resistance at $0.60 and then to $0.65. Conversely, if the bears push the price back below the 20-day EMA, it would suggest that higher levels are still attracting selling. The bears would then attempt further downside by pulling the price below $0.49.

This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.