Bitcoin Capped at $60K, But LTC, FET, MNT and AAVE Show Promise

Bitcoin (BTC) prices are falling under selling pressure and are on target to drop more than 9% this week. Bitcoin has consistently made lower highs over the past few months, which is a negative sign. This puts the pressure on the bulls to defend the support.

Markets are bracing for a major stimulus in the form of a September rate cut by the US Federal Reserve. The FedWatch tool shows a 30% chance of a 50 basis point rate cut on September 18. Some believe that if this happens, risk assets, including Bitcoin, could rally.

However, in the meantime, the weakness of Bitcoin has affected the overall sentiment in the crypto sector. Several altcoins have given back their recent gains, and some have turned lower, indicating a lack of buyer interest.

A handful are showing promise of recovery in the near future. Selected altcoins pulling higher, will bitcoin rebound near support? Let's study the top 5 currencies that can be involved in crypto acquisition if it happens.

Bitcoin price analysis

Bitcoin's inability to break above its moving averages will add pressure and drag the price towards strong support at $55,724.

The bulls are expected to guard the $55,724 support with all their might as a break below it could signal the start of a downward move. The BTC/USDT pair may enter major support at $49,000.

Time is running out for the Bulls. If they want to make a comeback, they need to quickly push the price above the moving averages. The pair can go up to $65,000 and then to $70,000.

The pair has been trading below the 20 exponential moving average on the 4-hour chart, indicating that bears are dominant in the near term. Sellers try to push the price to $55,724 and then $54,000. Rulers are expected to aggressively defend this zone.

The first signal of strength is a break and close below the 20-EMA. The pair may then rise to the 50-easy moving average. If this level is exceeded, the pair could accelerate to $65,000.

Litecoin price analysis

Litecoin (LTC) has been in a downtrend for the past several weeks, but the bulls are trying to make higher lows and higher highs.

The moving averages are flat, and the RSI is close to the midpoint, indicating a balance between supply and demand. To signal a trend reversal, buyers need to assert and sustain a price above $68. The LTC/USDT pair can climb to $76.

Conversely, if the price declines from the 50-day SMA ($66) and breaks below $59, it indicates that the bears are not disappointed. That could sink the pair to critical support at $55.

The bulls are trying to start a recovery, but the bears are making a strong challenge at $68. Sellers tried to pull the pair to $50, but the bulls bought the dips at $59. Flat moving averages and an RSI near the midpoint do not give a clear advantage to either buyers or sellers.

If the price deviates from the moving averages and breaks above $68, it may initiate the next movement towards $76. On the other hand, a break below the moving averages could pull the pair towards $59. If the $59 support is broken, the bears will return to order.

Fetch.ai price analysis

Fetch.ai (FET) rallied above its moving averages on August 23, indicating that the bears are losing their grip.

The move to the upside broke above the resistance above $1.51 on August 27 and dropped to the moving average. This is an important step to protect the bulls.

If the price deviates from the moving averages, the buyers will again try to drive the FET/USDT pair above $1.51. If successful, the pair completes a bullish reversal head and shoulders pattern. This setup target is $2.32.

Conversely, if the price breaks below the moving averages, it would indicate that a range-bound move is likely between $1.51 and $0.70.

The 4-hour chart shows that the pair is in a correction, finding support at the 61.8% Fibonacci retracement level at $1.05. The bears have stopped the recovery at the 50-SMA, but the bulls are trying to reach a higher low at $1.12. If the price rises above the 50-SMA, the pair can retest the overhead resistance at $1.51.

On the contrary, if the price is reduced from the 50-SMA, it indicates that the sentiment is negative, and traders sell in rallies. The pair may drop to $1.05.

Related: Bitcoin Loses 8.6% in August as September Starts at New 2-Week Low

Mantle price analysis

Mantle (MNT) has been trading near the 20-day EMA ($0.61) for the past few days, indicating a battle between the bulls and bears.

If buyers push the price above the 20-day EMA and hold it, it signals the start of a strong recovery. The MNT/USDT pair may try to rally towards the 50-day SMA ($0.68) where the bears are entering. However, if the bulls win, the pair could pick up momentum and move towards $0.90.

If the price declines from the current level and breaks below $0.56, this optimism will be invalidated in the near term. That could sink the pair to $0.47.

The pair is stuck in a tight range between $0.56 and $0.66. Flat moving averages and an RSI below the midpoint do not provide a clear advantage to either buyers or sellers.

If the price continues below the moving averages, the pair could slide towards the $0.56 support. Alternatively, a break above the moving averages clears the way to $0.66 for a rally. The next trending move could start above $0.66 or below $0.56.

Aave price analysis

Aave (AAVE) broke through strong support at $118, but the rally is trading near the 50% Fibonacci retracement level near $133.

The 20-day EMA ($123) is trending higher, and the RSI is above the midpoint, indicating slight upside for the bulls. If the price rebounds from $118, it will indicate that the bulls are trying to turn the level into support. A break and close above $135 opens the door to a rally to $149.

If the price declines and breaks below $118, this bullish outlook is worthless in the near term. The AAVE/USDT pair may drop to the 50-day SMA ($109).

The pair reversed from the downtrend line and broke below the 20-EMA. The bears will try to push the price towards $118 next. This is an important level to defend if the bulls want to continue the upward movement. If the price breaks above $118 and above $135, it suggests that a short-term correction may end.

Instead, if the price continues lower and breaks below $118, it will indicate that the bears are in charge. The pair can drop to $105.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.