Bitcoin (BTC), has traded at or near $55,000. Bitcoin’s sharp rise has increased its market dominance, from 40.70% on Sept. 12 to around 45% today. This is a clear indication that Bitcoin has led the strong recovery of cryptocurrencies.
The Fear and Greed indicator has been pushed into the Greed zone by the sharp rise in Bitcoin. This indicator may indicate that markets have risen quickly, but it doesn’t necessarily mean that there is a confirmed top.
Daily view of crypto market data. Source:Coin360
The history suggests that traders who sold Bitcoin positions based on this metric alone may have missed significant gains before the correction hit, as Marcel Pechman, Cointelegraph Marke analyst, highlighted.
Could the bulls continue the up-move, pushing the price closer the the all-time high of Bitcoin? If this happens, some altcoins could rally to the upside. Let’s look at the charts of five top cryptocurrencies that may remain strong in the near term.
Bitcoin rose above the $52,920 overhead resistance on Oct. 6, and bulls have kept the price above that breakout level ever since. This is a good sign because it suggests that buyers might be holding onto their positions in anticipation of higher levels in the near future.
Daily chart of BTC/USDT Source: TradingView
The moving averages completed a bullish crossover, and the relative strength indicator (RSI) is close to the overbought area. This suggests that the path of least resistance will be to the upside.
The uptrend may resume if buyers push the price higher than $56,100. If that happens, the BTC/USDT exchange rate could rise to $60,000. A retest at the record $64,854 level is possible above this level.
Contrary to what is being assumed, bears could pull the price below $52,920 and the pair could fall to the 20-day exponentially moving average ($49.504). This support is crucial for bulls to protect as a break below could signal a change of short-term sentiment.
The pair could drop to the 50 day simple moving average ($47578) or close to $40,000.
Chart for BTC/USDT 4 hours TradingView
Bulls face selling in the $55,750-56,100 zone. However, buyers are not allowing the price to fall below the 20-EMA. This suggests that bulls expect a break above this overhead zone.
The pair may resume its uptrend if that happens. A break below the 20-EMA will signal weakness. The RSI has formed a negative divergence signaling that momentum is weakening.
Breaking and closing below the 20EMA could bring the price down to the 50 SMA. A fall below this support could trigger a deeper correction.
The overhead resistance of $38.77 has been slowly moving higher for Polkadot. The RSI broke out of its downtrend line, and the 20-day EMA (32.15) has begun to rise, indicating a buyer advantage.
Daily chart of DOT/USDT Source: TradingView
Bulls pushing the price higher than $38.77 will invalidate the head-and-shoulders pattern. A failure to form a bearish pattern is a bullish sign. This may cause aggressive bears to try and cover their positions, leading to a short squeeze.
The DOT/USDT pairing could then begin its journey towards $49.78. The pair could also drop to $28.60 if it falls below the overhead resistance or current price and the overhead resistance.
The pair could remain range bound for a few more days if it bounces off of this support. To signal their dominance, the bears will need to lower the price below its neckline.
4-hour chart for DOT/USDT Source: TradingView
Both moving averages are increasing and the RSI is positive, indicating that buyers are in charge. The 20-EMA could be a support level for the pair. The bulls will push the pair up to $38.77 if the price rises from this support.
This level could again be a strong resistance, but bulls must not lose much ground to it. The possibility of breaking above it increases.
If bears pull the price lower than the 20-EMA, it could lead to a drop to the 50 SMA. Breaking and closing below this support could lead to a drop to $31 or $29.
Uniswap’s (UNI) price has held above the 20-day EMA (24.55) over the past few days. This shows that bulls are trying defend this support. The bears have not allowed the price above the neckline to fall and they aren’t willing to give up.
Daily chart of UNI/USDT Source: TradingView
To complete an inverse H&S, the buyers will need to push the price higher than the neckline. The pattern target for this bullish reversal setup is $36.98, but the rally could not be linear because bears will attempt to defend the $31.41 level.
The 20-day EMA has been steadily rising, and the RSI is just below the midpoint. This suggests that bulls have a slight advantage. If the price closes below the 20 day EMA, this advantage will disappear.
The UNI/USDT pairing could fall to $22. This level could act as a support, but bears can sink below it and the pair could drop to $17.73.
Chart for the 4-hour period UNI/USDT Source: TradingView
The 4-hour chart shows that for quite some time, the price has been consolidating within a narrow range of $24 to $26. These tight ranges are usually indicative of a direction change.
The possibility of a break beyond the neckline is increased if buyers continue to drive the price higher than $26. This could lead to a march towards the $30 overhead resistance and then onto $31.
However, bears may win if the price falls below $24. This could lead to the pair dropping to $22.
Related: The XRP price will rise to $1.50 in the next 10 days after it bounces 30%
Chainlink (LINK), broke above the downtrendline on Oct. 1. However, the bulls have not been in a position to profit from this move. For the past few days, altcoin has been in a tight range of $25.20 to $26.19
Daily chart for USDT LINK. Source: TradingView
Both moving averages remain flat, and the RSI is trading at the midpoint. This suggests that there is a balance between supply/demand. If the price closes above $28.19, this equilibrium will shift in favor of buyers.
The LINK/USDT currency pair could rally to $32.11 then challenge the stiff overhead resistance of $35.33.
A break and close below $25.20 could indicate that demand exceeds supply. The pair could drop to the $22-20.82 support zone.
LINK/USDT 4-hour chart Source: TradingView
The overhead resistance has been broken and the price is now lower than the moving averages. The pair could fall to $25.20 if sellers maintain the lower levels. If the pair falls below this level, it could indicate that bears have returned to command.
If the price rises above the moving averages and goes up from its current level, this will indicate that traders are buying dips. To signal their return to the driver’s seat, the bulls must push the price higher than $28.19 and keep it there. The pair could then rally to $32.11.
Monero (XMR), which rose above the 50 day SMA ($271) Oct. 5, and reached the downtrendline Oct. 6. For the past few days, the bears have been aggressively protecting the downtrend line. However, a minor plus is that the bulls have not allowed prices to drop below the 50 day SMA.
Daily chart of XMR/USDT Source: TradingView
The 20-day EMA ($263) has been slowly rising and the RSI remains in the positive zone. This indicates a slight advantage for buyers. Breaking above $300 and closing above it could lead to a move up to $325, and then to $339.70.
However, if the price falls below the 20-day EMA it could indicate that short-term traders may be selling their positions. This could bring the price down to $250, and then to $225.
4-hour chart of XMR/USDT Source: TradingView
Although the bulls have repeatedly driven the price higher than the downtrend line, the bears have not permitted the pair to maintain above it. The 20-EMA has flattened and the RSI is near the center, suggesting a balance in supply and demand.
The short-term bulls could rush to the exit if the price falls below the 50 SMA. This could bring the price down to $260 or even $250.
If bulls push the price higher than $286.8, then the pair could reach $296.80. Bulls pushing the price above this resistance could increase bullish momentum.
You should research all aspects of trading and investment before making any decision.
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.