Rocky road lies ahead, but here’s 5 altcoins that still look bullish

On August 26, the United States equity markets plunged following Jerome Powell, Federal Reserve Chair,’s speech in which he reiterated his central bank’s hawkish stance. The cryptocurrency markets and Bitcoin (BTC), which continue to be closely linked with the equities, also saw a sharp selloff Aug. 26.

Bitcoin’s price has fallen 14% in August, which is the worst performance since 2015, when it had fallen 18.67%. Investors may find this disappointing as September’s average loss of 6% since 2013 is a questionable record, according to CoinGlass data.

Daily view of crypto market data. Source:Coin360

While buying in a downtrending markets is not a good strategy traders can monitor cryptocurrencies that outperform the markets as they are most likely to be the first to the block in the event of a turnaround. If the market is in a bear market, traders need to be patient as they will likely find many opportunities to buy once it stabilizes.

What are the key levels to monitor for Bitcoin? What cryptocurrencies could outperform Bitcoin in the short-term if it makes a turnaround? Let’s look at five cryptocurrencies that appear strong on the charts.

BTC/USDT

Bulls may be reluctant to buy aggressively at this level if there is a weak rebound from a strong support. Although the bulls were able to defend the support line for several more days, they could not push the price higher than the 20-day exponential moving mean ($21,806). This indicates a lackluster demand at higher levels.

Daily chart of BTC/USDT Source: TradingView

The price fell below the ascending channel as bears took advantage of the opportunity. The 20-day EMA is sloping downward and the RSI is close to the oversold zone. This indicates that bears are in control.

BTC/USDT could fall to the strong support zone of $18,910 and $158,626. The bulls will attempt to push the price higher than the 50-day simple move average ($22,340) if the price bounces off of this zone. The pair could reach $25,211 if they succeed.

However, the price could fall below $18,626, and the pair could retest its June 18 intraday low of $17,622. To signal the resumption or decline of the downtrend, the bears must sink the price below $18,626

BTC/USDT 4-hour chart. TradingView

The 4-hour chart’s downsloping moving medians indicate that bears are in control, but the positive divergence of the relative strength index suggests that sell pressure may be easing.

A rise above the 20EMA will be the first sign of strength. The pair could reach the 50-SMA if that happens. Breaking above this level could indicate that the correction is over.

However, selling momentum could increase if the price falls below $19 800. The pair could plummet to $18,910 to $18,626.

MATIC/USDT

Polygon (MATIC), which has seen strong support, has shown that bulls are aggressively defending the level. This means that the range-bound action will likely continue for at least a few days. This is why we should be focusing on the altcoin.

Daily chart MATIC/USDT Source: TradingView

Bulls are trying to push the price higher than the moving averages. If they succeed, it could mean that the MATIC/USDT pairing could rally to $1.05. This level could be a target for bears who may sell strongly.

Alternativly, if the price falls below the moving averages it will indicate that bears have been selling rallies. The bears will attempt to lower the price below $0.75, which is the critical support. The pair could fall to $0.63 if they succeed.

MATIC/USDT 4-hour chart. Source: TradingView

The price has risen above its moving averages due to the bulls. This is the first sign that selling pressure might be decreasing. Positive divergence of the RSI is another sign that the bears might be losing their grip.

Buyers will attempt to push the price higher than the $0.84 overhead resistance. The pair could rally to $0.91 if they succeed. This may act as another strong resistance. To discredit this positive view, bears must sink the price below $0.75.

TOM/USDT

Cosmos (ATOM), has been chosen because it trades above the 50-day SMA ($10.58), and is close to the psychological support of $10.

Daily chart ATOM/USDT Source: TradingView

Bulls will defend the area between $10 and 50-day SMA aggressively. The price will rise above the $20-day EMA ($11.39) if it bounces off the zone. This could indicate that there is less selling pressure.

The ATOM/USDT currency pair could then reach the overhead resistance at $12.50, and later to $13.45. Breaking above this level could signal that the downtrend is over.

Contrary to popular belief, if the price falls below the support zone and the price continues to fall, it could initiate a deeper correction. The price could fall to $8.50.

ATOM/USDT 4-hour chart. Source: TradingView

On the 4-hour chart, the 20-EMA has declined and the RSI is in negative territory. This indicates that bears hold the advantage in the short term. To challenge the psychological support of $10, the sellers will need to lower the price and maintain it below the uptrend line.

If the price bounces off the uptrend line, this will indicate that bulls are buying dips at this level, as they have done in the past. To open the door to a rally to $12.50, the buyers will need to push the price higher than the moving averages.

Related: Bitcoin threatens a 20-month low monthly close, with BTC price below $20K

XMR/USDT

Monero (XMR), which is currently holding at $142, has made it onto the list. This indicates that buyers are attracted to lower levels.

Daily chart of XMR/USDT Source: TradingView

Bulls driving the price higher than the 20-day EMA ($153) will indicate that the correction is over. If bulls push the price above $158, the XMR/USDT currency pair could gain momentum. The pair could rally to $174 if that happens. To signal the resumption or the up-move, the bulls must clear this hurdle.

If the price falls below $142, this positive outlook could be invalidated. The pair could fall to $132 or $117 if that happens. Bears are slightly ahead of the pack, as indicated by the RSI in negative territory and the downsloping 20 day EMA.

XMR/USDT 4-hour chart. Source: TradingView

The buyers want to push the price higher than the 20-EMA. The pair may rise to the 50 SMA if they succeed. This could again be a resistance. The pair could reach $158 if bulls can overcome this barrier. Breaking and closing above this resistance will indicate a change in the trend.

If the price drops below the 20-EMA, this will indicate that bears are selling during minor rallies. The price could fall to $142, which is the strong support. This support could crack and signal a deeper correction.

CHZ/USDT

For the third week in a row, Chiliz (CHZ), has been included in this list. It is still in an uptrend, despite the recent correction.

Daily chart CHZ/USDT Source: TradingView

The overhead resistance of $0.26 was breached by buyers on Aug. 23-24 and 24, but the price could not hold the higher levels, as evidenced by the candlesticks’ long wicks. The short-term traders may have been tempted to make profits by this. This brought the price to $0.20, just above the $20 EMA ($0.20).

Bulls bought this drop and are trying to resume the upward movement towards $0.26 overhead resistance. To open the door to a rally to $0.33, the bulls must clear this hurdle.

Rising moving averages indicate buyers are in the lead, but negative divergence on RSI may indicate that bullish momentum is waning. The bears will win if the price falls below the 20-day EMA. The price could fall to the 50-day SMA ($0.15).

CHZ/USDT 4-hour chart. Source: TradingView

The 20-EMA is now flattening and the RSI is oscillating around the midpoint. This indicates a balance between sellers and buyers. For a while, this could mean that the pair will remain between $0.20- $0.26.

If bulls push the price higher than $0.26 or lower than $0.20, then the next trending move might be initiated. The bulls will likely buy dips near $0.20 to support and then sell near $0.26 to avoid the overhead resistance. The range will remain volatile and random, so trading within it is unlikely to be regulated.

You should research all aspects of trading and investment before making any decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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