Bitcoin is capped at $60k, but LTC, FET, MNT and AAVE look promising.

The Bitcoin (BTC) price is under selling pressure and is expected to drop by more than 9% this week. Bitcoin has been making lower highs over the past few months, which is a negative sign. This means that the bulls have a responsibility to defend support.

The market is bracing for a major catalyst in the form of a September rate cut by the U.S. Federal Reserve. The FedWatch Tool shows a 30% chance of a 50bp rate cut on September 18. Some believe that if that happens, risk assets, including Bitcoin, could rally.

However, Bitcoin’s weakness has also damaged sentiment across the cryptocurrency sector, with several altcoins reversing recent gains and some even turning bearish, indicating a lack of buyer demand.

There are only a few that show any hope of recovery in the short term. Will Bitcoin bounce off its nearby support and push some altcoins higher? Let’s take a look at the top five cryptocurrencies that could participate if a crypto recovery occurs.

Bitcoin Price Analysis

If Bitcoin fails to break above the moving averages, the pressure will build further, likely sending the price down to solid support at $55,724.

The bulls are expected to defend the $55,724 support with all their might, as a break below it could signal the start of a downtrend. This could lead to a sharp drop for the BTC/USDT pair towards the key support at $49,000.

The bulls don’t have much time left. If they want to make a comeback, they will have to push the price above the moving averages quickly. This could push the pair to $65,000 and then $70,000.

The pair has been trading below the 20 exponential moving average on the 4-hour chart, indicating that bears have the upper hand in the short term. Sellers will attempt to push the price up to $55,724 and then $54,000. Buyers are expected to defend this area fiercely.

The first strength signal is a breakout and close below the 20-EMA. Then the pair can rise to the 50-simple moving average. If it breaks above this level, the pair can accelerate to $65,000.

Litecoin Price Analysis

Litecoin (LTC) has been in a downtrend over the past few weeks, but the bull market is trying to make higher lows and higher highs.

The moving averages are flat and the RSI is nearing its midpoint, indicating a balance between supply and demand. Buyers need to hold the price above $68 to signal a potential trend change. Then, the LTC/USDT pair can rise to $76.

Conversely, if the price were to decline from the 50-day SMA ($66) and drop below $59, it would suggest that the bears have not given up. Then, the pair could sink to the important support level of $55.

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

If the price breaks above the moving average and breaks $68, it could start the next phase of the uptrend to $76. On the other hand, if it breaks below the moving average, the pair could fall to $59. If the $59 support is broken, the bears will take control again.

Fetch.ai Price Analysis

Fetch.ai (FET) rose above its moving average on August 23, indicating a weakening downtrend.

The uptrend started with a drop from overhead resistance at $1.51 on August 27th, before falling to the moving average, a crucial level for bulls to defend.

If the price rises above the moving average, buyers will try to push the FET/USDT pair back above $1.51. If successful, the pair will complete a bullish inverse head and shoulders pattern. This setup has a target target of $2.32.

Conversely, if the price breaks below the moving average, it is likely to range between $1.51 and $0.70 for some time.

The 4-hour chart shows that the pair is correcting, and it is finding support at the 61.8% Fibonacci correction level of $1.05. The bears have stopped recovering at the 50-SMA, but the bulls are trying to make a higher low at $1.12. If the price breaks above the 50-SMA, the pair could retest overhead resistance at $1.51.

Conversely, if the price breaks down from the 50-SMA, it suggests that sentiment is still negative and traders are selling the rally. Then, the pair may fall to $1.05.

relevant: Bitcoin Down 8.6% in August, September Starts at Two-Week Low

Mantle Price Analysis

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

If buyers push the price above the 20-day EMA and hold it, it signals the start of a stronger recovery. Then, the MNT/USDT pair may attempt a rally to the 50-day SMA ($0.68), where the bears may step in. However, if the bulls prevail, the pair is likely to gain momentum and move to $0.90.

This optimistic outlook will be invalidated in the short term if the price declines from current levels and falls below $0.56. In that case, the pair may fall to $0.47.

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

If the price stays below the moving average, the pair may slide to the $0.56 support level. Or, if it breaks above the moving average, it opens the way for a rally to $0.66. The next trend move is likely to start above $0.66 or below $0.56.

Aave Price Analysis

Aave (AAVE) bounced off strong support at $118, but the rally is facing selling near the 50% Fibonacci retracement level at $133.

The 20-day EMA ($123) is rising and the RSI is just above the midpoint, indicating a slight advantage for the bulls. If the price bounces back to $118, it will signal that the bulls are looking to turn the level into support. A breakout and close above $135 will open up a rally to $149.

This positive outlook will be invalidated in the short term if the price declines and falls below $118. This could lead to a plunge in the AAVE/USDT pair towards the 50-day SMA ($109).

The pair reversed course from the downtrend line and fell below the 20-EMA. The bears will next try to push the price down to $118. This is a vital level that the bulls need to defend if they want to resume the uptrend. If the price rises above $118 and falls above $135, it suggests that the short-term correction may be over.

Instead, if the price continues to decline and falls below $118, it will be a signal that the bears have taken control. Then, the pair can fall to $105.