Bitcoin (BTC) has remained relatively stable over the past three days, even as the S&P 500 experienced a four-day decline. This indicates that cryptocurrency traders are not panicking and rushing to sell their Bitcoin holdings, which is a positive sign. In fact, data from Glassnode shows that short-term holders (STHs) of Bitcoin, who have held their coins for 155 days or less, currently hold the least amount of Bitcoin supply in over a decade. This suggests that Bitcoin’s supply is gradually shifting to stronger hands.
The uncertainty surrounding Bitcoin’s next move may be keeping traders cautious in the short term. As a result, several large altcoins have experienced subdued price action. However, it is worth noting that there are also some altcoins showing signs of a potential recovery in the near future.
The question now is whether Bitcoin can break out of its current range and initiate a bullish move in the near term. If it does, it could potentially act as a catalyst for an altcoin rally. Let’s take a closer look at the charts of the top five cryptocurrencies that may lead the charge higher.
Bitcoin’s price analysis shows that while the bulls have managed to keep the price above the 20-day exponential moving average ($26,523), they have not been able to start a strong rebound. This lack of demand at higher levels suggests that the advantage currently lies with the bears. A break below the 20-day EMA could signal a further decline to the support level at $24,800. On the other hand, if the price rises above the 50-day simple moving average ($26,948), it would indicate that buyers are back in control and could potentially lead to a rally to the overhead resistance at $28,143.
In the 4-hour chart, Bitcoin has been trading below the moving averages, indicating some bearish pressure. However, sellers have not been able to push the price lower, suggesting that selling interest is drying up at lower levels. The bulls will try to push the price above the moving averages, which could lead to a rally towards $27,400 and ultimately $28,143. However, if bears manage to sustain the price below $26,200, it could trigger further downside towards $25,750 and eventually the key support level at $24,800.
Moving on to Chainlink (LINK), the cryptocurrency recently surged above the downtrend line on September 22, indicating a potential trend change. The moving averages have also completed a bullish crossover, and the RSI is in positive territory, all suggesting that buyers have the upper hand. On any correction, the bulls are likely to buy the dips to the 20-day EMA ($6.55). A strong rebound from this level would suggest a change in sentiment and could push the price towards $8 and $8.50. However, if the price drops below the 20-day EMA, it would indicate a weakening of bullish momentum and could keep the pair range-bound between $6.55 and $8.50 for some time.
For Maker (MKR), the cryptocurrency turned down from the overhead resistance at $1,370 on September 21, indicating bearish pressure. The 20-day EMA ($1,226) is a key support level to watch, as a rebound from this level would suggest further buying interest. The bulls would then attempt to drive the price above the resistance level at $1,370, which could lead to an acceleration towards $1,759. On the other hand, a break below the 20-day EMA would suggest a weakening of bullish momentum and could keep the pair range-bound between $980 and $1,370.
Arbitrum (ARB) is currently in a downtrend, but there are signs that the bulls are trying to hold their positions and anticipate a move higher. The RSI has risen above 40, indicating a shift in momentum. If buyers manage to push the price above the 20-day EMA ($0.85), it would suggest the start of a sustained recovery, with potential targets at the 50-day SMA ($0.95) and $1.04. On the downside, key support levels are at $0.80 and $0.78, with a break below these levels indicating a resumption of the downtrend.
Finally, Theta Network (THETA) experienced a comeback as the bulls absorbed the supply and pushed the price above the 20-day EMA ($0.61). Although the bears managed to bring the price back below the 50-day SMA ($0.64), the bulls are expected to defend the 20-day EMA. If the price turns up from the current level and breaks above the 50-day SMA, it would enhance the prospects of a retest of $0.70 and potentially even $0.76. However, a downside break below the 20-day EMA could lead to a retest of $0.57.
In conclusion, while Bitcoin’s range-bound trading may have kept traders cautious, there are several altcoins showing signs of a potential recovery. Chainlink, Maker, Arbitrum, and Theta Network are all worth watching as they exhibit different price dynamics and potential catalysts for an upswing. However, as with any investment, readers are advised to conduct their own research and analysis before making any decisions.
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