Bitcoin (BTC) is looking to end the week on a positive note after forming a consecutive doji candlestick pattern on the weekly chart for the past three weeks. This is an early sign that uncertainty among bulls and bears is resolving to the upside.
Although the recovery is still in its early stages, the Federal Open Market Committee meeting on September 20 may increase volatility. Most market participants expect the Fed to keep interest rates as they are, but there could be surprises from Fed Chairman Jerome Powell at his post-rate decision press conference.
Bitcoin’s recovery from strong support near $24,800 has sparked buying interest in certain altcoins, which offers trading opportunities. For these altcoins to continue rising, Bitcoin needs to remain above $26,500.
Could Bitcoin’s easing rally accelerate momentum, triggering buying of certain altcoins? Let’s examine the charts of the top 5 cryptocurrencies that have shown promise in the recent past.
Bitcoin Price Analysis
On September 14, Bitcoin rose above the 20-day exponential moving average ($26,303), indicating that selling pressure is easing. Since then, bulls have thwarted bears’ attempts to pull prices back below the 20-day moving average.
Buyers will try to take advantage and push the BTC/USDT pair towards the 50-day simple moving average ($27,295). This level may be a minor hurdle, but if overcome, the pair could reach $28,143. Bears are expected to defend this level vigorously.
If the bears want to maintain their advantage, they will have to push the price below the 20-day EMA. This could trap aggressive bulls and open the door to a potential retest of key support at $24,800.
Prices are trading above the 20 EMA on the 4-hour chart, indicating that bulls are buying the dip. This suggests traders expect the recovery to continue. If buyers break the $26,900 barrier, the pair may climb towards $27,600 and eventually $28,143.
If the bears want to stage a comeback, they will have to sink the price below the 20 EMA. This move would clear the way for further declines towards the 50 moving average and subsequently to strong support areas between $25,600 and $25,300.
Manufacturer price analysis
On September 15, buyers pushed Maker (MKR) above the 50-day EMA ($1,162), indicating that bulls are trying to take control.
The MKR/USDT pair is about to move towards $1,370. This level may witness a tough battle between bulls and bears. If the bulls don’t give up too much ground from this level, the likelihood of a breakout above this level increases. If this happens, the pair could accelerate towards $1,759.
The key level to watch on the downside is the 20-day EMA ($1,162). A breakdown of this level would suggest that the pair is likely to trade within a large range between $980 and $1,370 for some time.
The 4-hour chart shows that bulls are still in control, but the RSI is close to overbought territory, indicating that a small correction or consolidation will occur in the near future. The 20 EMA remains a key level to watch on the downside. A breakout and close below could signal the start of a deeper correction toward the 50 moving average.
On the contrary, if the price rebounds from the 20 EMA, it will indicate that the bulls continue to buy the dip. This could start a rebound towards the overhead resistance at $1,370.
AAVE price analysis
On September 16, Aave (AAVE) surged above its moving averages, signaling that bulls had taken action. However, the long shadow on the intraday candlestick indicates that the selling is at a higher level.
A small advantage in favor of the bulls is that they did not allow the bears to stage a comeback and once again try to hold the price above the 50-day moving average ($59). If they are successful, the AAVE/USDT pair could accelerate to $70 and subsequently to $76.
The 20-day EMA ($56) is an important support to watch in the near term. If the price falls below this level, it indicates that bears are active at higher levels. This could push the pair down to solid support at $48.
The 4-hour chart shows that bulls have recently bought a pullback to the 20-day moving average, indicating that market sentiment has turned positive. Buyers will try to push the price above the $63 resistance. If they succeed, the pair could surge to $70.
Contrary to this assumption, if the price declines and falls below the 20 EMA, it would indicate higher levels of demand drying up. The pair may then slide towards the 50 moving average, which may attract buyers.
related: How low can the price of Bitcoin go?
THORChain Price Analysis
THORChain (RUNE) has seen a smart recovery over the past few days, indicating that buyers are trying to stage a comeback.
The uptrend is approaching solid resistance at $2, which may act as a major hurdle. If the price drops significantly from $2, it would indicate that the bulls are rushing to exit. This could push the price down to the 20-day EMA ($1.62).
Conversely, if the RUNE/USDT pair does not retrace too much from current levels, it would suggest that bulls are holding on to their positions as they expect the rally to continue further. If $2 is withdrawn, the pair may start a new uptrend towards $2.30 and then to $2.80.
The 4-hour chart shows the $2 level as resistance. Prices may retrace to the 20 EMA, which may act as strong support. If the price rebounds strongly from this level, the bulls will once again try to overcome the $2 barrier. If they succeed in doing so, the pair could surge to $2.30.
The first sign of weakness will be a break and close below the 20 EMA. This may attract some short-term traders to take profits. The pair may then drop towards the 50 moving average.
Rendering price analysis
On September 15, Render (RNDR) broke out and closed above the 50-day moving average ($1.58), indicating that selling pressure may be easing.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating a slight advantage for the bulls. If prices recover from the 20-day EMA ($1.50), it would signal a shift in sentiment from selling on the highs to buying on the dips. This could start a stronger rally to $1.83 and then to $2.20.
This positive view may be invalidated in the short term if the price continues lower and falls below the moving averages. Subsequently, the RNDR/USDT pair may plummet to $1.38 and then to $1.29.
The moving averages on the 4-hour chart are sloping upwards and the RSI is in positive territory, indicating that buyers have the upper hand. The first support level to watch on the downside is the 20-day moving average. If prices recover from this level, it would suggest that bulls continue to view dips as buying opportunities. This increases the likelihood of a rally to $1.77.
Conversely, if the 20 EMA yields, the pair may slide towards the 50 EMA. This is an important defensive level for bulls, as a break below this level could send the pair down to $1.39.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.