Bitcoin (BTC) price has been reeling under selling pressure and is on target to fall by more than 9% this week. Bitcoin has consistently formed lower highs for the past few months, which is a negative sign. This brings the onus on the bulls to defend the support.
The markets are gearing up for a major catalyst in the form of a September rate cut by the United States Federal Reserve. The FedWatch Tool shows a 30% probability of a 50 basis point rate cut on Sep. 18. Some believe that if that happens, risk assets, including Bitcoin could rally.
Crypto market data daily view. Source: Coin360
However, in the meantime, Bitcoin’s weakness has hurt the overall sentiment in the crypto sector. Several altcoins have given back their recent gains, and some have turned lower, indicating a lack of demand from buyers.
Only a handful are showing promise of a recovery in the near term. Will Bitcoin rebound off its nearby support, pulling select altcoins higher? Let’s study the top 5 cryptocurrencies that may participate in a crypto recovery if it happens.
Bitcoin price analysis
Bitcoin’s failure to rise above the moving averages is likely to add pressure and pull the price to the solid support at $55,724.
BTC/USDT daily chart. Source: TradingView
The bulls are expected to guard the $55,724 support with all their might because a break below it could suggest the start of a downward move. The BTC/USDT pair could then plunge to the pivotal support at $49,000.
Time is running out for the bulls. If they want to make a comeback, they will have to swiftly push the price back above the moving averages. The pair may then climb to $65,000 and subsequently to $70,000.
BTC/USDT 4-hour chart. Source: TradingView
The pair has been trading below the 20-exponential moving average on the 4-hour chart, indicating that the bears have the upper hand in the near term. Sellers will try to pull the price to $55,724 and then to $54,000. Buyers are expected to fiercely defend this zone.
The first sign of strength will be a break and close below the 20-EMA. The pair could then rise to the 50-simple moving average. If this level is surpassed, the pair may…
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