Cryptocurrencies to watch for the week of September 11

Like last week, this article will review the cryptocurrencies to watch this week (BTC, ETH, XRP and LTC). The Federal Reserve of course has an impact on the crypto market. Jerome H. Powell, the chairman of the Federal Reserve, signaled last Thursday that the central bank will continue to raise interest rates and will do everything in its power to fight rising inflation, saying, “ The longer inflation remains above target, the greater the risk that the public will see higher inflation as the norm.

“History strongly warns against premature relaxation of politics,” Powell added.

It was Powell’s last public speech before the Federal Bank’s next interest rate decision on September 20-21. Going forward, most analysts believe the FED will hike rates another 75 basis points (0.75%).

However, although this message is Hawkish (which is negative for the equity and crypto markets), stocks and cryptocurrencies reacted with a strong upward movement.

The flagship crypto is up around 10% in the past seven days, where the majority of the move was made on Friday. As mentioned earlier in the last “Market Breakdown,” the bulls managed to hold the price above the yearly lows of June 18 at around $17,500, and as the sellers were swept away, bitcoin rose higher. At the time of writing, it is trading at around $21,600.

On the one hand, if this bullish momentum continues, bitcoin should test its next major resistance zone (where the sellers previously entered and drove the price down) at around $25,000. On the other hand, if this bullish momentum reverses again and the sellers regain control, the main support area for bitcoin (where the buyers had previously entered the market and pushed the price higher) remains at the around $19,000.

Ethereum, the second-largest cryptocurrency by market capitalization, has seen a slightly stronger move than bitcoin, rallying 10.7% in the past seven days to break above strong resistance at $1,700.

This level has been strong resistance for the past few weeks, so the fact that the buyers were able to break out and close above this level should be noted by traders. With the long-awaited “merger” fast approaching, traders need to keep a close eye on the price.

In case the major $1,700 level holds, Ethereum may continue its bull run and try to take the next major resistance level at $2,000. However, if something goes wrong with the meltdown or if the entire crypto market reverses lower, the next level of support to watch is $1,500.

Another week has passed and there is still no verdict for the ongoing Ripple vs. SEC lawsuit despite XRP enjoying the general wave of optimism in the crypto market. The cryptocurrency rose around 6.4% last week and reclaimed its seventh position by market capitalization after briefly losing it to Cardano.

At the time of writing, XRP is trading at around $0.35, a very significant level for the token, where traders can clearly see that this level has acted as both support and resistance over the past few months.

As of now, traders should be aware of how this level holds. If the broader crypto market continues its bullish momentum, XRP will be on its way to the next major resistance level at around $0.40. However, with the test still ongoing and the crypto market still in a bearish setup, XRP has the opportunity to drop back down to its previous support zone at around $0.27.

Litecoin was only up about 1% in the past week. At the time of writing, the cryptocurrency is trading at around $60.75. This is an impressive increase of around 50% from the June 14th low.

If the bullish momentum continues, LTC might hit its next resistance level at around $80. However, if the current level at ~$61-$62 fails (which may already be happening), LTC may visit its next support at around $50.

Conclusion: A nice rally, but the trend remains unchanged

Although last week’s rally brought some light and hope to buyers, traders should be aware that the main trend remains bearish as prices have yet to hold higher on the charts.

For now, as I mentioned earlier in last week’s review, I’m still looking with every push higher to sell for profit and wait for price to drop into major support areas before adding to my positions.

Remember, the Fed meeting will be on September 22. After that, we should see much clearer moves in the markets.

Disclosure

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