As the Crypto Fear and Greed Index shows, sentiment can quickly change in crypto markets. It has gone from extreme fear levels on Sept. 30, to neutral today. If Bitcoin (BTC), which is psychologically critical at $50,000, breaks out, the sentiment could improve even further.
The U.S. Securities and Exchange Commission (SEC), decision regarding Bitcoin exchange-traded funds (ETF) applications is an important event that could boost short-term sentiment. The deadline for four Bitcoin ETF applications was extended by 45 days by the SEC on Oct. 1. However, Eric Balchunas, Bloomberg’s senior ETF analyst, is optimistic that an ETF backed by futures will be approved by the SEC by the middle October.
Daily view of crypto market data. Source:Coin360
Balchunas stated that the Bitcoin futures-based ETF application applications have received support from Garry Gensler (we believe 75% chance of approval in October).
Many altcoins could gain momentum if bulls continue to build on Bitcoin’s recent strength and surpass the $50,000 hurdle. Let’s look at the charts of five top cryptocurrencies that could outperform in the near term.
Bitcoin broke above its 50-day SMA ($46,633) Oct. 1, but bears are trying to stop the recovery at $48,843.20. Positive news is that the bulls have not allowed bitcoin to drop below the 50-day SMA.
Daily chart of BTC/USDT Source: TradingView
The relative strength index (RSI), which is in the positive zone, has moved up to $45,141. This indicates that the bulls have an advantage. The BTC/USDT pair could rise to $52,920 if buyers push the price higher than $48,843.20.
Although this level could act as stiff resistance, bulls can bulldoze through it to invalidate the head-and-shoulders pattern. This could lead to a pickup in momentum, and the pair could reach $60,000.
This assumption is incorrect. If the price drops below its current level and falls below the moving averages it will indicate that bears are selling aggressively at higher levels. This could lead to a drop in the pair towards $40,000.
Chart for BTC/USDT 4 hours TradingView
The 4-hour chart’s moving averages are both rising and the RSI is close to the overbought area, indicating that the path of least resistance is towards the upside. For some time, the price has been holding steady in a narrow range of $47,000 to $48,495
Bulls pushing the price higher than $48,843 could cause the pair to reach the psychological mark of $50,000, and then the stiff resistance at $52,920.
If the price falls below the 20-EMA, this will indicate that short-term traders are making profits. This could lead to a drop in the pair to $45,000, and then to the 50 SMA.
Terra protocol’s LUNA token broke through the downtrend line Oct. 2, and bulls followed that up today with a break above $45.01 (the all-time high). The candlestick’s long wick today suggests that bears are aggressively trying to defend $45.01 levels.
Daily chart of LUNA/USDT Source: TradingView
If the price falls from its current level, but bounces off the downtrend line it will indicate that sentiment is positive and traders are buying dips.
The bulls will attempt to push the price higher than the $45.01- $46.17 resistance zone to start the next leg in the uptrend. Although the psychological level of $50 could act as a resistance, if it is crossed, LUNA/USDT may rally to $65.
However, if the price falls below the 20-day EMA (36.30), then the next stop could well be the 50 day SMA (32.97). If the price falls below this support, it will indicate that bulls are losing control.
4-hour chart of LUNA/USDT Source: TradingView
The candlestick’s long wick shows that bulls drove the price to $45.01, but it is selling at higher levels. Bullish bulls may have been longing for $45.01. The bears are trying to trap them.
The 20-EMA is the first support for the downside. The 20-EMA will be the first support on the downside. A strong rebound from this support will indicate that sentiment is positive. The bulls will then attempt to push the price higher than $46.17.
A break below the 20EMA could bring the price down to 50 SMA. The pullback could be as deep as $33 if this support breaks.
Cosmos (ATOM), which successfully held the breakout level of $32.32 on Sep. 29th, suggests that sentiment is positive and bulls continue to buy on dips.
Daily chart ATOM/USDT Source: TradingView
Although the bulls drove the price higher than the 20-day EMA ($35.88 on Sept. 30, the momentum has not picked up. This indicates that the bears are still selling rallies and have not given up yet. To signal the resumption or continuation of the uptrend, the bulls must push and maintain the price above $44.80.
Today’s candlestick has a long wick, which suggests that you should sell at higher levels. The bears will attempt to lower the price to $32.32 if the price falls below its current level. The ATOM/USDT pair may drop to the 50 day SMA ($28.54) if they succeed.
Chart for ATOM/USDT 4 hours Source: TradingView
The resistance line of the symmetrical triangular triangle was the area where the pair fell, suggesting that bears are aggressively defending it. The bulls will attempt to push the price higher if the price bounces off the moving averages.
The pair could rally to $44.80 if they succeed and then to the psychological level of $50. If the pair breaks and closes above this level, it could be possible to move up toward the pattern target of $57.61.
The support line could be reached if the price falls below the moving averages. The pair could fall to $28.83, and then to $24.50 if this level is broken.
Related: The Ethereum fractal that produced a gain of 7,000% for ETH in 2017 appears again in 2021
Tezos (XTZ), rebounded from the 50-day SMA ($5.50), on Sept. 29, and momentum picked up after bulls pushed it above the 20-day EMA ($6.40), on Sept. 30,
Daily chart of XTZ/USDT Source: TradingView
The price climbed above the $8.03-$8.42 overhead resistance zone due to sustained buying. Both moving averages are trending upwards and the RSI is close to the overbought territory. This indicates that bulls have control.
It will signal the beginning of a new uptrend if bulls can hold the price above $8.42. Contrary to this assumption bears will pull back and maintain the price above $8.42. This will indicate profit-booking at higher levels. The XTZ/USDT exchange rate could drop to the 20 day EMA.
4-hour chart for XTZ/USDT Source: TradingView
The formation of a symmetrical triangular pattern on the 4-hour chart is shown. This pattern usually acts as a continuation. The breakout level was held by the bulls, who successfully pushed the price higher than the triangle. This signals an up-move.
This setup has a target pattern of $11.33. Bulls are ahead because of the rising 20-EMA, and the RSI at the overbought area.
A close below $8.03 will signal weakness. This could signal a retest at the 20-EMA. If the price bounces off this level, it will indicate that traders are still buying dips and the sentiment is positive. A break below the 20EMA could bring the price down to $7, and then to $6.50.
Axie (AXS), which soared to a new all-time high of $94.67 on October 1, suggests a resumption in the uptrend. It is a good sign that traders are interested in a coin reaching an all-time high.
Daily chart of AXS/USDT Source: TradingView
Although the AXS/USDT pairing has been struggling to overcome resistance at $120.57, bulls are not giving up any ground. This indicates that traders aren’t rushing to make profits following the rally and are instead buying dips.
The 20-day EMA ($77), has begun to rise, and the RSI remains in the overbought area. This indicates that bulls are on top. The pair could begin its upward march towards $150 and $165.58 if buyers push the price higher than $120.57.
Contrary to what you think, if bears lower the price to $94.67, traders may book aggressive profit booking and the pair could drop to the 20 day EMA.
Chart for AXS/USDT 4 hours Source: TradingView
The price has recovered from $103.22 and bulls are trying to push it above $110.50 overhead resistance. The upward-sloping moving averages as well as the RSI within the overbought area indicate that the path of least resistance is towards the upside.
The pair could test the $120.57 resistance level if buyers push it above $110.50. The resumption or acceleration of the uptrend could be signaled by a break and close above the level.
However, if the price moves down from the overhead resistance, it may continue to consolidate before making the next directional move. A break below the 20-EMA will signal weakness. This will indicate that bullish momentum is weakening and that supply exceeds demand.
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.