Bitcoin (BTC) has been showing resilience in the face of a falling S&P 500, as traders in the cryptocurrency market remain calm and steadfast. This is a positive sign that indicates a shift in Bitcoin supply to stronger hands. According to analyst CryptoCon, short-term holders of Bitcoin (investors who have held their coins for 155 days or less) currently hold the least amount of Bitcoin supply in over a decade, as per Glassnode data.
The uncertainty surrounding the next directional move for Bitcoin may be responsible for the lackluster price action seen in many large altcoins. However, this is not indicative of a negative sentiment across the board, as several altcoins are showing signs of a potential recovery in the near term.
Now, let’s take a closer look at the charts of the top five cryptocurrencies that may lead the charge higher.
Bitcoin Price Analysis:
While the bulls have managed to keep the price of Bitcoin above the 20-day exponential moving average (EMA), they have struggled to initiate a strong rebound. This lack of demand at higher levels is evident in the flattish 20-day EMA and the relative strength index (RSI) near the midpoint, indicating a state of equilibrium between buyers and sellers. A break below the 20-day EMA could shift the advantage in favor of the bears, potentially leading to a descent to the key support level at $24,800. On the other hand, if the price rises above the 50-day simple moving average (SMA), it would signal a resurgence of buyer interest and open the possibility of a rally towards the overhead resistance at $28,143.
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Chainlink Price Analysis:
Chainlink (LINK) demonstrated a potential trend change when it surged above the downtrend line on September 22. The moving averages have completed a bullish crossover, and the RSI is in positive territory, suggesting that buyers currently have the upper hand. If the price rebounds off the 20-day EMA, it would indicate a change in sentiment from selling on rallies to buying on dips. The bulls would then attempt to extend the up-move towards $8 and eventually $8.50. Conversely, if the price falls below the 20-day EMA, it would suggest profit-booking by the bulls and could potentially retest the breakout level from the downtrend line.
Maker Price Analysis:
Maker (MKR) faced resistance at the $1,370 level, indicating that bears are attempting to defend this price level. The 20-day EMA is currently a crucial support level, and a rebound off this level would suggest that buyers are still attracted to lower prices. If the bulls can successfully drive the price above the overhead resistance, MKR could surge towards $1,759. However, a break below the 20-day EMA would indicate weakened bullish momentum and could result in a range-bound trading phase between $980 and $1,370 for a period of time.
Arbitrum Price Analysis:
Arbitrum (ARB) is currently in a downtrend, but the fact that the bulls have not given up much ground is a positive sign. The RSI is gradually turning positive, suggesting a potential turnaround in momentum. If the bulls manage to push the price above the 20-day EMA, it could mark the start of a sustained recovery towards the 50-day SMA and eventually $1.04. However, a break below the immediate support at $0.81 would indicate that selling pressure is increasing and could potentially lead to a retest of the support near $0.74.
Theta Network Price Analysis:
Theta Network (THETA) showed signs of a comeback when it soared above the 20-day EMA on September 23. Although the price has dipped below the 50-day SMA, the bulls are expected to defend the 20-day EMA. If the price turns up from the current level and surpasses the 50-day SMA, it would enhance the chances of a retest of $0.70 and potentially higher. However, if the price falls below the 20-day EMA, it could signal a potential retest of $0.57.
Overall, while Bitcoin remains in a tight range, the resilience shown by Bitcoin traders and the potential recoveries seen in certain altcoins indicate that a bullish move could be on the horizon. However, as always, it is important for investors to conduct their own research and exercise caution when making investment decisions.
Disclaimer: This article is not intended to provide financial advice or recommendations. Investing in cryptocurrencies and trading involve risk, and readers should do their own research before making any decisions.
