BTC Generating a “Golden Cross” Signal

Bitcoin, Ethereum and XRP Forecast Video for 19.09.23 by Tim Smith

Leading cryptocurrencies eased slightly in Thursday’s Asian session after initially rallying earlier on expectations that the Federal Reserve will keep interest rates on hold.

Markets now price in a 99% chance that the U.S. central bank will leave the federal funds rate unchanged between 5.25% and 5.5% at Wednesday’s FOMC meeting. Furthermore, futures also indicate a 71% chance of rates remaining on hold in November and a 60% probability of the same in December. Typically, risk-on assets such as digital currencies and technology stocks remain hypersensitive to interest rate movements due to their heavy reliance on borrowing to fuel growth. Despite cryptocurrencies posting modest gains in recent trading sessions, CoinShares data confirmed $54 million in digital asset outflows for the week ending September 15.

Below, we apply technical analysis to the four-hour charts to identify important trading levels in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).

Technical Analysis: Bitcoin, Ethereum and XRP

Bitcoin

Since finding a floor at key support, Bitcoin’s price has remained in a steady uptrend. Moreover, the 50 SMA recently crossed back above the 200 SMA, generating a “golden cross” buy signal. A rally from these levels could see bulls test the next major resistance area around $28,800. However, a break below the uptrend line could trigger a reversal and potential retest of longer-term support at $25,000.

Ethereum

Ethereum’s price has remained in an uptrend since the false breakdown below a descending triangle pattern. Unlike Bitcoin, no golden cross has formed, however, an established trendline and 50 SMA continue to provide support. A move higher from here could see a test of key resistance levels at $1,740 and $1,820. Alternatively, a breakdown below the 50 SMA could lead to a potential decline to crucial support between $1,500 and $1,535.

XRP

Like Bitcoin and Ethereum, XRP’s price continues to trade above an uptrend line stretching back to last week’s bear trap breakdown. A convincing close above the closely-watched 200 SMA could see bulls test the top of a previous trading range around $0.54 before making a run towards higher overhead resistance at $0.61. Conversely, a reversal below the trendline and 50 SMA could see the price revisit line-in-the-sand support at $0.46.