Bitcoin (BTC) has traded in a tight range over the past three days, although the S&P 500 has fallen over the last four days of the week.. This is a positive sign because it shows that cryptocurrency traders are not panicking and running for the nearest exit.
The supply of Bitcoin appears to be gradually shifting into stronger hands. Analyst CryptoCon said citing data from Glassnode that bitcoin short-term holders (STHs), investors who hold their coins for 155 days or less, have the smallest amount of bitcoin supply in for more than a decade.
Short term, Uncertainty over bitcoin’s next directional move may be holding traders back. That may be one of the reasons for the subdued price action of many major altcoins. But not everything is negative. Many altcoins are showing signs of recovery in the short term.
Could bitcoin come out of its slumber and start a short-term bull run? Could this act as a trigger for a rally for altcoins? Let’s study the charts of the top five cryptocurrencies that can lead the rise.
Bitcoin price analysis
The bulls managed to keep the price above the 20-day exponential moving average ($26,523), but they were unable to start a significant rebound. It shows a lack of demand at higher levels.
The flat 20-day EMA and the Relative Strength Index (RSI) near the midpoint indicate a state of balance between buyers and sellers.. A break below the 20-day EMA will tilt the advantage in favor of the bears. The BTC/USDT pair may then decline to the formidable support of $24,800.
However, If the price rises from the current level and exceeds the 50-day simple moving average ($26,948), it will indicate that the buyers are in control again. Then the pair may attempt a rally towards the overhead resistance at $28,143.
BTC is below the moving average on the 4-hour chart, but the bears have failed to initiate a downward move. This suggests that sales have declined to a lower level. The bulls will try to push the price of bitcoin above the moving averages. If they succeed, the pair could rebound to USD 27,400 and later to USD 28,143.
If the bears want to take control, they need to lower and keep the BTC price below $26,200. It may see it fall first to $25,750 and then to support at $24,800.
Chainlink Price Analysis
Chainlink (LINK) broke above the downtrend line on September 22, indicating a possible short-term trend reversal..
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that buyers have the upper hand.. In any correction, bulls tend to buy dips to the 20-day EMA ($6.55). A significant bounce from this level would suggest a shift in sentiment from selling on rallies to buying on dips.
The bulls will try to extend the rise above $8 and eventually $8.50. If the bears want to stop the rise, they need to push and hold the pair LINK / USDT below the 20-day EMA.
Both moving averages are trending upwards on the 4-hour chart and the RSI is in the positive zone.. Bulls are buying during the break towards the 20-day EMA, which shows positive sentiment. If LINK price bounces off the 20-EMA, $7.60 will be a solid target to watch..
Contrary to this assumption, If the Chainlink price continues to decline and falls below the 20-EMA, this is a sign of bulls taking profits.. LINK may retest the downtrend line breakout level. Bears need to push it below $6.60 to regain control.
Producer Price Analysis
Maker (MKR) pulled back from the overhead resistance of $1,370 on September 21, indicating that the bears are trying to protect the level..
The 20-day EMA ($1,226) is the support for looking to the downside. If the price rebounds from this point, it will suggest that lower levels will continue to attract buyers. The bulls will try again to get MKR above the overhead resistance. If they succeed, the MKR/USDT pair could reach $1,759.
On the contrary, If the bears push the price below the 20-day EMA, it will suggest that the bullish momentum has weakened. This could keep the pair bound between $980 and $1,370 for a few days.
The moving averages on the 4-hour chart have flattened and the RSI is just below the midpoint, indicating a balance between supply and demand. If buyers push the price above $1,306, MKR price can go to $1,370.
However, If the price reverses and breaks below $1,264, it will suggest that selling pressure is increasing.. This could clear the way for a further reduction of $1,225. A drop below this support could tilt the short-term advantage in favor of the bears.
Analysis of the price of Arbitrum
Arbitrum (ARB) is in a downtrend. The bears are selling rallies at the 20-day EMA ($0.85), but a positive sign is that the bulls are not stopping at much ground. This suggests that The bulls are trying to hold their positions as they anticipate an upward move.
The RSI rose above 40, indicating that the momentum is gradually turning positive. If buyers push the price above the 20-day EMA, this will suggest the start of a sustained recovery. The ARB/USDT pair may rise first to the 50-day SMA ($0.95) and then to $1.04.
The downside support is at $0.80 and then at $0.78. Sellers should push ARB price below this zone to retest support near $0.74. A break below this level would signal a continuation of the downtrend.
The 4-hour chart shows that the bears are selling during rallies to the downtrend line. The bears pushed the price below the moving averages but they were unable to bring the ARB price below the immediate support of $0.81. This suggests that the bulls are trying to form a higher low.
Buyers will try to push the price back above the downtrend line. If they succeed, the price of Arbitrum is likely to start a big recovery towards the psychological level of $ 1. On the contrary, a break below USD 0.81 could drag the price of ARB to USD 0.78 and then to USD 0.74.
Theta Network Price Analysis
Theta Network (THETA) climbed above the 20-day EMA ($0.61) on September 23indicating that the bulls have absorbed the supply and are trying to recover.
Bears have pushed the price back below the 50-day SMA ($0.64), but bulls are expected to protect the 20-day EMA. If the price of THETA rises from the current level and exceeds the 50-day SMA, the prospects of a retest at $0.70 will increase..
This is an important level to watch because if it goes up, THETA/USDT could reach $0.76. This positive view may be invalidated in the short term if the price declines and falls below the 20-day EMA. This opens the door to a possible retest of $0.57.
The 4-hour chart shows that the bears are protecting the resistance above $0.65. If buyers want to continue the bullish momentum, they need to push the price of THETA above $0.65. If they succeed, the pair is likely to start a new bullish move towards $0.70.
The 20-day EMA is the key support to watch on the downside. If the bears push the price below this support, it will indicate that the bulls are closing their positions. Then the pair may decline to $0.58 support.
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