After forming consecutive Doji candlestick patterns on the weekly chart over the past three weeks, Bitcoin (BTC) is on track to end the week on a positive note. This is an early sign that the uncertainty between bulls and bears is shifting to the upside.
Although the recovery is still in its early stages, the Federal Reserve’s Federal Open Market Committee meeting on September 20 could increase volatility. Most market participants expect the Federal Reserve to maintain the status quo on interest rates, but there could be surprises during Fed Chairman Jerome Powell’s post-rate decision press conference.
Bitcoin’s recovery from strong support near $24,800 has sparked buying interest in a few select altcoins offering trading opportunities. For these altcoins to continue their uptrend, Bitcoin must remain above $26,500.
Could Bitcoin’s recovery rally gain momentum and trigger buying of certain select altcoins? Let’s look at the charts of the top 5 cryptocurrencies that are promising in the short term.
Bitcoin price analysis
Bitcoin rose above the 20-day exponential moving average ($26,303) on September 14, indicating that selling pressure is easing. Since then, the bulls have thwarted several attempts by the bears to push the price back below the 20-day exponential moving average.
Buyers will look to take advantage and push the BTC/USDT pair to the 50-day simple moving average ($27,295). This level may be a small hurdle, but if overcome, the pair is likely to reach $28,143. The bears are expected to vigorously defend this level.
If the bears want to maintain their advantage, they will have to push the price below the 20-day exponential moving average. This could trap aggressive bulls and open the door for a possible retest of key support at $24,800.
The price traded above the 20-day exponential moving average on the 4-hour chart, suggesting bulls are buying on dips. This suggests that traders expect the recovery to continue. If buyers clear the hurdle at $26,900, the pair could rise to $27,600 and eventually to $28,143.
If the bears want to regain control, they will have to lower the price and keep it below the 20-day exponential moving average. Such a move will pave the way for a further decline to the 50-day simple moving average and subsequently to the solid support zone between $25,600 and $25,300.
Manufacturer price analysis
Buyers pushed Maker (MKR) above the 50-day simple moving average ($1,162) on September 15, suggesting bulls are trying to take control.
The MKR/USDT pair is heading towards USD 1,370. A tough battle between bulls and bears is expected to take place at this level. If the bulls do not give much ground from this level, the likelihood of a breakout above increases. If that happens, the pair could gain momentum and head towards $1,759.
The key level to watch on the downside is the 20-day exponential moving average ($1,162). If this level is broken, it suggests that the pair could fluctuate in the broad range between $980 and $1,370 for some time.
The 4-hour chart shows that bulls are still in control, but the RSI near overbought territory suggests a minor correction or consolidation in the near term. The 20-day exponential moving average remains the most important level to watch on the bearish move. A break and close below could signal the start of a deeper correction towards the 50-day simple moving average.
If price instead bounces off the 20-day exponential moving average, it is a sign that bulls continue to buy on dips. This could trigger a rally towards key resistance at $1,370.
Aave price analysis
Aave (AAVE) rose above the moving averages on September 16, indicating that bulls have taken action. However, the long wick of the daily candle shows selling at higher levels.
A small advantage in favor of the bulls is that they have not allowed the bears to return and are once again trying to keep the price above the 50-day simple moving average ($59). If they are successful, the AAVE/USDT pair is likely to rise towards $70 and then $76.
The key support to keep an eye on in the near term is the 20-day exponential moving average ($56). If the price falls below this level, it will indicate that the bears are active at higher levels. This could take the pair lower to the solid support at $48.
The 4-hour chart shows that bulls recently bought the decline to the 20-day exponential moving average, suggesting that sentiment has turned positive. Buyers will attempt to push the price above the resistance at $63. If they succeed, the pair could rise to $70.
Contrary to this assumption, if the price declines and falls below the 20-day exponential moving average, it will indicate that demand is waning at higher levels. The pair could then slide towards the 50-day simple moving average, which could attract buyers.
THORChain price analysis
THORChain (RUNE) has rallied significantly in recent days, suggesting that buyers are looking for a comeback.
The uptrend is approaching solid resistance at $2, which is likely to be a major hurdle. If the price drops sharply from $2, it will indicate that the bulls are making a hasty exit. This could lower the price to the 20-day exponential moving average ($1.62).
On the other hand, if the RUNE/USDT pair does not lose much ground from current levels, it suggests that the bulls are holding their positions as they expect the rally to extend further. If it breaks the $2 level, the pair could start a new uptrend towards $2.30 and subsequently towards $2.80.
The 4-hour chart shows the $2 level acting as resistance. The price could fall back to the 20-day exponential moving average, which would likely act as strong support. If the price recovers strongly from this level, the bulls will once again attempt to clear the hurdle at $2. If they succeed, the pair could shoot towards $2.30.
The first sign of weakness will be a break and close below the 20-day exponential moving average. This could entice several short-term traders to take profits. The pair could then fall to the 50-day simple moving average.
Render price analysis
Render (RNDR) rose higher on September 15 and closed above the 50-day simple moving average ($1.58), suggesting that selling pressure may be easing.
The moving averages are close to a bullish crossover and the RSI is in positive territory, suggesting that the bulls have a slight advantage. If the price rises from the 20-day exponential moving average ($1.50), it indicates a shift in sentiment from selling on rallies to buying on downturns. This could trigger a stronger rally towards $1.83 and then $2.20.
This positive view could be invalidated in the short term if the price continues to decline and breaks below the moving averages. The RNDR/USDT pair could then fall to $1.38 and then to $1.29.
The moving averages on the 4-hour chart are sloping upwards and the RSI is in positive territory, indicating an advantage for buyers. The first support to watch on the downside is the 20-day exponential moving average. If the price recovers from this level, it would indicate that bulls continue to view declines as a buying opportunity. This increases the likelihood of a recovery towards $1.77.
On the other hand, if the 20-day exponential moving average weakens, the pair could fall to the 50-day simple moving average. This is an important level for bulls to defend as a break below could send the pair lower to $1.39.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.