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5 cryptocurrencies to keep an eye on in 2023

Analysts expect the bear market to loosen its grip in 2023. Here are five cryptocurrencies to keep an eye on.

It has been a tumultuous year for the crypto investors who have witnessed the total crypto market capitalization tumble from about $2.2 trillion at the beginning of 2022 to about $850 billion in December. The sharp erosion in valuation was caused due to several high-profile bankruptcies in 2022.

The entire Terra ecosystem imploded with the collapse of its LUNA token and TerraUSD (UST) stablecoin. The failure of Three Arrows Capital followed this black swan event, and the final blow came as FTX underwent a bank run and imploded. These back-to-back events triggered a liquidity and credit crunch and appear to have caused the most damage to the crypto industry.

A prolonged bear market tends to test investors’ patience, but it offers one of the best opportunities to buy fundamentally sound cryptocurrencies at lower levels. Smart investors who can go against the herd and invest during periods of panic tend to benefit the most when the trend eventually turns.

*Crypto market data daily view. Source:* *Coin360*

While a bear market is a great time to build a portfolio, traders tend to make the mistake of buying the coins that have fallen the most in the hope that they will recover to their previous glory. Most times that does not happen because every bull market has a new set of leaders. Generally, the ones that are resilient during the fall or recover quickly from the bottom tend to lead on the way up.

Let’s look at five cryptocurrencies that are showing promise for 2023.

BTC/USDT

The broader cryptocurrency market is unlikely to start a new bull phase until Bitcoin (BTC) stages a turnaround. Although Bitcoin has been in a strong downtrend for the past several months, the relative strength index (RSI) is forming a positive divergence, indicating that the bearish momentum may be weakening.

However, a positive divergence must have favorable price action to confirm a trend change.

The first sign of strength will be a break and close above the 20-week exponential moving average (EMA) of $19,870. The BTC/USDT pair could rally to $25,211, where the bears may mount a strong defense again.

If the price turns down from this level, then rebounds off the 20-week EMA, it will signal a change in sentiment from selling on rallies to buying on dips. That could increase the possibility of a break above $25,211.

The pair could then rise to the 50-week simple moving average (SMA) of $28,156. This remains the key level for the bears to defend because a break above it could suggest the start of a new uptrend. Bears may face a minor hurdle near $32,400, but that is likely to be crossed, and the pair could rise to $50,000.

However, the downtrend could resume if the price turns down from the current level or the 20-week EMA and breaks below $15,476. The next major support on the downside is $12,500 and $10,000.

*BTC/USDT daily chart. Source: TradingView*

The pair has been trading below the breakdown level of $17,622 for several days, but bears have failed to take advantage and resume the downtrend. This suggests that selling dries up at lower levels.

The 20-day EMA ($17,021) has flattened out and the RSI is near the midpoint, indicating that the bears may be losing their grip.

If buyers thrust the price above the overhead resistance, it will signal a potential trend change. A confirmation will happen after bulls flip the $17,622 level into support. That could lay the groundwork for a rally to $25,211.

ETH/USDT

Ether (ETH) has been in a strong downtrend, but a minor positive is that it is finding support near the psychological level of $1,000. The repeated rallies to the 20-week EMA ($1,428) also indicate sporadic buying by the bulls.

Although three rallies in the past few weeks have faced rejection at the 20-week EMA, the bears have failed to pull the ETH/USDT pair to the June low of $881, suggesting traders are buying the dips.

If bulls push and sustain the price above the 20-week EMA, several bears may cover their short positions. That could result in a rally to the overhead resistance at $2,030. The 50-week SMA ($1,977) is nearby; hence, this level may be a major obstacle for the bulls.

If buyers propel the price above $2,030, the pair will complete a double bottom pattern. This reversal setup has a target objective of $3,200, but the rally could extend to $3,600. The zone between $3,600 and $4,000 could prove to be a major barrier for the bulls.

If bears want to invalidate this bullish view, they will have to sink and sustain the price below $881.

*ETH/USDT daily chart. Source: TradingView*

The pair has been trading inside a descending channel pattern, but with the 20-day EMA ($1,255) flattening out, the RSI is near the midpoint. This suggests that the buyers are attempting a comeback.

If bulls push the price above the 50-day SMA ($1,326), the pair could rise to the resistance line of the channel. This is the key level to watch out for because a break above it will suggest that the downtrend could be ending. The pair could then rise to $1,800 and thereafter to $2,030.

On the contrary, if the price turns down from the current level or the overhead resistance, the bears will try to pull the pair to the channel’s support line.

MATIC/USDT

Several major cryptocurrencies are trading or have been threatening to break below their June low, but Polygon (MATIC) has been an outperformer as it is trying to form a base well above its yearly low.

The MATIC/USDT pair nudged above the 50-week SMA ($1.05) a few weeks ago, but the bulls could not sustain the breakout. This suggests that bears are active at higher levels. An encouraging sign is that the bulls did not allow the price to break below the crucial support at $0.69.

The 20-week EMA ($0.88) has flattened out and the RSI is near the center, indicating a balance between supply and demand. The first sign of strength will be a break above $1.05. That could increase the likelihood of a retest of $1.30. This is an important level for the bears to defend because a break above it could signal the start of a new uptrend.

The pair could rally to $1.75, where the bears may pose a strong challenge again. If this resistance is crossed, the pair could pick up momentum and soar to $2.92. The bears will gain the upper hand if they sink the price below $0.69. That could clear the path for a drop to $0.31.

*MATIC/USDT daily chart. Source: TradingView*

The pair has been stuck between $1.05 and $0.69 for several days. The breakout above $1.05 on Nov. 4 proved to be a trap as the bears pulled the price back below $1.05 on Nov. 8. Since then, the pair has continued its range-bound action.

The longer the price stays stuck inside the range, the stronger its breakout. The next break above $1.05 could enhance the prospects of a rally above $1.30. If that happens, the bullish momentum could pick up and the pair may climb to the psychological level of $2.

Alternatively, a break below $0.69 could tilt the advantage in favor of the bears. The pair could first drop to $0.40 and then retest the vital support of $0.31.

TON/USDT

Toncoin (TON) has been gradually pulling higher since the June low of $0.74. Traders put in a higher low at $1.18 in October, which is a sign of strength.

The up-move in the TON/USDT pair has reached the overhead resistance zone between $2.15 and $2.50. The bears will strive to stop the march by the bulls in this zone. If they do that, the pair could drop to the 20-week EMA ($1.61) and then to $1.18. If this support gives way, the pair could retest its June low of $0.74.

If bulls want to maintain their advantage, they will have to bulldoze their way through the overhead zone. The pair could attract huge buying if it sustains above $2.50 as it has no major overhead resistance above this level. The next stop on the upside could be $4.26.

*TON/USDT daily chart. Source: TradingView*

The bulls tried to push the price above $2.15 on Dec. 11 but the bears held their ground as seen from the long wick on the day’s candlestick. However, the bulls did not give up ground and are again trying to break above the overhead resistance on Dec. 12.

The upsloping moving averages and the RSI in the overbought zone indicate that the path of least resistance is to the upside. Above $2.15, the pair could rally to $2.50.

This level may act as resistance on the way down. But if bulls flip the $2.15 level into support, it will increase the chances of a break above $2.50.

The bears will have to pull and sustain the price below the moving averages to weaken the short-term strength. The pair could then drop to $1.50 and later to $1.20.

QNT/USDT

Quant (QNT) soared from $40 in June to $228 in October. This sharp rally in the midst of the bear phase indicates strong demand from traders. Although the price has given back a large part of its gains, buyers are trying to form a higher low near $87.

After the volatile moves of the past few weeks, the QNT/USDT pair is likely to enter a consolidation phase where the bulls and the bears battle it out for supremacy. The boundaries for the wide range may be $87 on the downside and $228 on the upside.

A well-defined range offers an opportunity for traders to buy near the support and book profits close to the resistance.

If bulls kick the price above $228, the pair could speed up and soar to $325. This level could act as a roadblock, but if cleared, the pair could retest the high at $430.

If the price turns down and breaks below $87, it will suggest that bears are in command. The pair could then plummet to $50.

*QNT/USDT daily chart. Source: TradingView*

After the sharp fall from $228 to $94, the pair may spend some time in a range. The important level to watch on the upside is $137, and $94 on the downside.

If bulls push the price above $137, the pair could rally to the 61.8% Fibonacci retracement level at $176. The bears are expected to aggressively defend this level because a break above it could complete a 100% retracement, resulting in a rally to $228.

However, if the price breaks and sustains below $94 in the near term, it could indicate a resumption of the downtrend.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

TON, TWT, CHZ and QNT breakout amid traders’ crypto contagion fears

Bitcoin price is stuck in a tight range, but TON, CHZ, QNT and TWT caught a bid in the past week.

The FTX collapse continues to stoke fears of a contagion in the cryptocurrency space as investors wait to hear about businesses that may face the heat. One of the marquee names to come under the circle of suspicion is the Grayscale Bitcoin Trust (GBTC), which has seen its discount to Bitcoin’s (BTC) price reach record levels of about 50%.

Traders hate uncertainty and shy away from investing during these periods. That could be one of the reasons for the lack of buying interest in Bitcoin even after the sharp fall in its price. The Stock-to-Flow (S2F) model, which had seen its popularity soar during the bull phase, is coming under increasing criticism after the deviation between Bitcoin’s price and its projected price hit levels never seen before.

Does this suggest that the pessimism has reached an extreme or is it just that the S2F model is flawed?

During a bear market phase, the general trend is down, but there are always pockets of strength that may offer trading opportunities to long-only investors. However, rallies during bear markets are short-lived, hence traders may consider booking profits near strong resistance levels.

Let’s look at the charts of five cryptocurrencies that may attempt a rally in the near term.

BTC/USDT

Bitcoin continues to trade inside the tight range between $16,229 and $17,190. Generally, periods of tight consolidation are followed by an increase in volatility.

The downsloping moving averages and the relative strength index (RSI) in the negative zone indicate that the path of least resistance is to the downside. If the price breaks below $16,229, the Nov. 9 intraday low of $15,588 may be threatened. A break and close below this support could signal the resumption of the downtrend. The next support on the downside is $12,200.

If bulls want to avoid a further decline, they will have to push and sustain the price above the breakdown level of $17,622. Such a move will suggest strong demand at lower levels. The pair could then climb to the psychological level of $20,000.

*BTC/USDT 4-hour chart. Source: TradingView*

The BTC/Tether (USDT) pair has been trading near the moving averages, which have flattened out. This suggests that the pair has entered a state of equilibrium as both the buyers and sellers are undecided about the next directional move.

However, this uncertainty is unlikely to continue for long. If the price plummets below $16,229, the selling pressure could pick up momentum and the pair may drop to $15,588. If this support gives way, the pair may start the next leg of the downtrend.

On the contrary, if the price rises and breaks above $17,190, it will suggest that the current tight range was used by the bulls to accumulate. The pair could then rally to $18,200 and later to $18,730.

TON/USDT

Toncoin (TON) has recovered sharply from its June low and managed to hold on to a large part of the gains. This suggests that traders are in no hurry to dump their positions at higher levels.

The TON/USDT pair has formed a symmetrical triangle, which usually acts as a continuation pattern. Both moving averages are gradually sloping up and the RSI is in the positive territory, indicating a slight advantage to the bulls.

If the price rebounds off the 20-day exponential moving average (EMA) of $1.65, the bulls will try to drive the price above the triangle. If they can pull it off, the pair could rally to $2.15 and thereafter climb toward the target objective of $2.87.

Alternatively, if the price slips below the 20-day EMA, the pair could drop to the 50-day simple moving average (SMA) of $1.50 and then to the support line.

*TON/USDT 4-hour chart. Source: TradingView*

The pair is facing stiff resistance at $1.80. Repeated failure to sustain the price above this level may have tempted short-term traders to book profits. The bears are trying to capitalize on this situation and sink the price below the 50-SMA. If this support cracks, the pair could dive to $1.55.

Conversely, if the price rebounds off the current level, the bulls will again try to scale the wall at $1.80. The repeated retest of a resistance level tends to weaken it. A close above this resistance could open the doors for a possible rally to $2.

CHZ/USDT

Chiliz (CHZ) is attempting to form an inverse head and shoulders pattern, which will complete on a break and close above the neckline. If that happens, it may signal the start of a new uptrend.

The pattern target of the reversal formation is $0.54 but the bears are unlikely to give up easily. They are aggressively defending the neckline. If the price breaks below the 50-day SMA of $0.21, the CHZ/USDT pair could decline to $0.18 and subsequently to $0.14.

Alternatively, if the price bounces off the current level, buyers will again attempt to propel the pair above the neckline and gain control.

The flattening moving averages and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. Hence, it is better to wait for the price to breakout before establishing fresh positions.

*CHZ/USDT 4-hour chart. Source: TradingView*

The pair turned down sharply from $0.27 and the bears have pulled the price below the moving averages. If the price sustains below the 50-SMA, the pair could drop to $0.20. That could put the bears in the driver’s seat.

On the other hand, if the price turns up from the current level and rises above the 20-EMA, it will suggest that traders are viewing the dips as a buying opportunity. The pair could then rise to $0.26 and later to $0.28. Buyers will have to drive the price above this level to challenge the resistance at $0.30.

QNT/USDT

Although Quant (QNT) has corrected sharply in the past few days, it is attempting to take support and bounce off the support line. This indicates demand at lower levels.

The downsloping 20-day EMA of $128 indicates an advantage to the bears but the RSI is trying to form a positive divergence. This suggests that the selling pressure could be easing.

Buyers will have to propel and sustain the price above the 20-day EMA to indicate that the corrective phase may be over. The QNT/USDT pair could then rise to the 50-day SMA of $151 and thereafter to $180.

This positive view could invalidate in the near term if the price continues lower and breaks below the uptrend line. The pair could then drop to $87 and later to $79.

*QNT/USDT 4-hour chart. Source: TradingView*

The recovery in the pair is facing selling near the downtrend line. This suggests that the bears are active at higher levels. The bears have pulled the price below the moving averages and will try to extend the decline to $105 and then to $94.

To invalidate this negative view, the bulls will have to kick and sustain the price above the downtrend line. The pair could then rise to $125 where the bears may mount a strong defense. If buyers overcome this barrier, the up-move may reach $136.

TWT/USDT

While most major cryptocurrencies extended their downtrend in the past few days, Trust Wallet Token (TWT) has moved in the opposite direction and risen sharply. This indicates outperformance in the near term.

The TWT/USDT pair soared from $1.03 on Nov. 10 to $2.73 on Nov. 14, a 165% rally within a short time. That pushed the RSI deep into the overbought territory, suggesting a minor correction or consolidation in the near term and that is what happened.

The pair is finding support near the 50% Fibonacci retracement level of $1.88 but the bulls are struggling to push the price above $2.45. This suggests the pair may consolidate between $1.81 and $2.45 for a few days.

Both moving averages are sloping up and the RSI remains in the positive territory, indicating that bulls have the advantage. If buyers drive the price above the $2.45 to $2.73 resistance zone, the pair could resume its uptrend. This positive view could invalidate on a break and close below the 20-day EMA of $1.70.

*TWT/USDT 4-hour chart. Source: TradingView*

The bears pulled the price below the 50-SMA, but they are struggling to keep the pair down. This suggests strong buying at lower levels. If buyers push the price above the 20-EMA, the pair could rise to the downtrend line.

A break above this level could clear the path for a possible rally to $2.45. This remains the key hurdle for the bulls to overcome. If they succeed in breaking it, the pair may retest $2.73.

On the downside, a slide below $1.92 could result in a decline to $1.81. This is an important level to keep an eye on because a break below it could tilt the advantage in favor of the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

5 altcoins that could be ripe for a short-term rally if Bitcoin price holds $19K

Bitcoin price continues to trade within a tight range, setting up possible short-term breakout for MATIC, HT, QNT and OKB.

The S&P 500 and the Nasdaq Composite fell to a new year-to-date low last week and closed the week with a loss of 1.55% and 3.11%, respectively.

The scenario changed drastically on Oct. 17 after the earnings, season ramped up and a sharp policy reversal from U.K. Finance Minister Jeremy Hunt added detail to the government’s plan to fix his predecessor’s (Kwasi Kwarteng’s) fiscal package, which had triggered a record fall in the value of the GBP and a near liquidation of pension plans in the United Kingdom.

At the time of writing, the Dow is up 1.78%, while the S&P 500 and Nasdaq present 2.57% and 3.26% respective gains. Meanwhile, Bitcoin (BTC) has managed to stay well above its year-to-date low showing short-term outperformance.

Some analysts expect that Bitcoin could be closer to a bottom. Twitter trader Alan said that the stochastic indicator on Bitcoin’s monthly chart has reached levels similar to those seen during the 2014 and 2018 bear markets, indicating a likely macro bottom.

Similarly, LookIntoBitcoin creator Philip Swift said in an interview with Cointelegraph that Bitcoin could be close to major cycle lows. Citing various metrics, Swift said that Bitcoin may face another two to three months of pain but should start its outperformance in 2023.

As Bitcoin sustains above its June low, select altcoins are attracting buyers. Let’s look at charts of five cryptocurrencies that look interesting in the near term.

BTC/USDT

Bitcoin broke above the 50-day simple moving average (SMA) ($19,689) on Oct. 14 but the higher levels attracted heavy selling by the bears. That pulled the price back below the 20-day exponential moving average (EMA) ($19,387).

Buyers are trying to defend the immediate support at $18,843 but the recovery could face resistance at the 20-day EMA and then at the downtrend line. If the price turns down from the overhead resistance, the possibility of a break below $18,843 increases. The pair could then plummet to the $18,125 to $17,622 support zone.

To avoid this catastrophe, the bulls will have to force the price above the downtrend line. If they manage to do that, the BTC/USDT pair could rally to $20,500. A break above this resistance could signal the start of a relief rally to $22,800.

The pair has been stuck between $18,125 and $20,500 for some time. If bulls push the price above the moving averages, the pair could climb up to $20,000 and then to $20,500. The bears may mount a strong resistance at this level but if bulls overpower them, the recovery could pick up speed.

Another possibility is that the price turns down from the moving averages and drops below the support at $18,843. That could intensify selling and the pair could then plunge to the support at $18,125. The bulls are expected to defend this level with vigor.

MATIC/USDT

Polygon (MATIC) has been attempting to rise above the downtrend line for the past few days. Although the bears successfully defended the overhead resistance, they could not keep the price down on Oct. 13. This suggests that bulls are buying the dips as they anticipate a move higher.

If the price climbs above the downtrend line, the short-term trend could tilt in favor of the bulls. The MATIC/USDT pair could then attempt a rally to $0.94. This level may again act as a strong barrier but if bulls overcome it, the pair could rally to $1.05.

Alternatively, if the price once again turns down from the downtrend line, the bulls may give up and the pair could then drop to $0.69. The bears will have to pull the price below this level to start a deeper correction to $0.62 and then to $0.52.

*MATIC/USDT 4-hour chart. Source: TradingView*

The downtrend line has been witnessing a tough battle between the bulls and the bears. Although the bears have come out on top, the bulls are not willing to give up. They aggressively purchased the drop to $0.71 and are again trying to push the pair above the downtrend line.

The 20-EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If bulls push the price above the 50-SMA, the pair could challenge the downtrend line. A break above this resistance could clear the path for a possible rally to $0.86.

On the other hand, buyers may bail out of their position if the price turns down and breaks below $0.77. The pair could then slide to $0.71.

HT/USDT

Huobi Token (HT) started a strong up-move from $4.07 on Oct. 10 that reached $8.20 on Oct. 14, a 101% move within five days. This indicates that bulls are in control.

The sharp rally of the past few days pushed the RSI into deeply overbought territory, which may have tempted short-term traders to book profits. That started a correction that could reach the 38.2% Fibonacci retracement level of $6.61.

If the price rebounds off this support, the bulls will try to resume the up-move by pushing the HT/USDT pair above $8.20. If they succeed, the pair could rally to $10.

Contrary to this assumption, if the price breaks below $6.64, the pair could decline to the 50% retracement level of $6.12 and then to the 61.8% retracement level of $5.63. A deeper fall could delay the start of the next leg of the up-move.

*HT/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price rebounded off the 20-EMA but the bulls could not sustain the higher levels. This shows that traders could be booking profits on minor rallies.

The 20-EMA has flattened out and the RSI is just above the midpoint, indicating that the bullish momentum could be weakening. If the price breaks and sustains below the 20-EMA, the next stop could be the 50-SMA.

If bulls want to regain the upper hand, they will have to push the price above $7.65. The pair could then retest the overhead resistance at $8.20. A break above this level could start the next leg of the uptrend.

QNT/USDT

Quant (QNT) broke above the overhead resistance at $162 and has continued higher, indicating sustained demand from the bulls.

The upsloping 20-day EMA ($149) indicates advantage to buyers but the RSI in the overbought territory points to a possible minor correction or consolidation in the near term. Buyers are expected to defend the drop to the breakout level of $162.

If the price rebounds off this level, the QNT/USDT pair could rise to $200 and later attempt a rally to the target objective at $230.

This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. The pair could then decline to the 50-day SMA ($120).

The pair is facing resistance near $188 but the rising moving averages and the RSI in the overbought zone indicate the path of least resistance is to the upside. If buyers thrust the price above $188, the pair could rally to $204.

Contrarily, if the price turns down and breaks below the 20-EMA, it will suggest that traders may be booking profits. That could pull the price down to the crucial support of $162. A break and close below this support could indicate that the pair may have topped out in the near term.

OKB/USDT

OKB (OKB) has been trading above the moving averages for the past few days and the RSI has jumped into the positive territory, indicating advantage to buyers.

The OKB/USDT pair is facing stiff resistance at the overhead resistance at $17.50 but a minor positive is that the bulls have not ceded ground to the bears. This suggests that the bulls expect the pair to climb above the overhead resistance. If that happens, the pair could rally to $20 and thereafter to $23.22.

The first support on the downside is $16.39. If the price turns down and breaks below this level, the pair could slide to the moving averages and then to $15.

OKB/USDT 4-hour chart. Source: TradingView

The price turned down from the overhead resistance at $17.50 but the bulls are trying to defend the 20-EMA. If the price rises above $17, the likelihood of a retest of $17.50 increases. Buyers will have to clear this hurdle to signal the resumption of the uptrend.

The positive momentum may weaken if the price turns down and breaks below the 20-EMA. The pair could then decline to the 50-SMA. If this level also cracks, the next stop could be $15.50.

On the contrary, if the price rebounds off the 50-SMA and rises above the 20-EMA, it will suggest accumulation at lower levels. The bulls may then again attempt a rally to $17.50.

Crypto traders shift their focus to altcoins while Bitcoin price consolidates

Traders shift their focus to XRP, UNI, QNT and EGLD while Bitcoin continues to consolidate around the $20,000 level.

It has been difficult for Bitcoin (BTC) and the cryptocurrency markets to start a strong sustained recovery while the United States dollar is near its multi-year high and the U.S. equities markets are near their June lows. This shows that the sentiment remains negative and traders are not interested in taking on risk in their portfolios.

The U.S. equities markets fell sharply on Oct. 7 following the release of September’s nonfarm payroll data, but they did manage marginal gains for the week. The S&P 500 rose 1.5% and the Nasdaq Composite climbed 0.7% last week. Meanwhile, Bitcoin is on track to finish the week with marginal gains of about 2%.

In the past few days, Bitcoin has managed to avoid a collapse even when the U.S. equities markets were being clobbered. This is the first indication that the selling pressure may be reducing and traders may not be willing to part with their holdings at lower levels.

However, for a sustained recovery, Bitcoin will need some support from the return of the risk-on sentiment. Until then, volatile range-bound action is likely to continue, with certain altcoins offering trading opportunities. Let’s examine the charts of five cryptocurrencies that look interesting in the near term.

BTC/USDT

Bitcoin is struggling to stay above the 50-day simple moving average ($19,961), indicating that the bears have not yet given up. The sellers pulled the price below the 20-day exponential moving average ($19,628) on Oct. 7, but they could not extend the decline to the support at $18,626. This suggests that bulls are buying on dips and are trying to form a higher low in the short term.

The flattish 20-day EMA and the relative strength index (RSI) just below the midpoint suggest a balance between supply and demand. Buyers will have to push and sustain the price above the downtrend line to gain the upper hand. The BTC/USDT pair could then rally to $22,800, where the bears may again mount a strong defense.

On the downside, the bears may find it difficult to sink the price below the zone between $18,626 and $17,622 considering the bulls are expected to defend the zone with all their might. Still, if the zone cracks, the pair could start the next leg of the downtrend. The pair could then decline to $15,000.

The failure of the pair to rise above the $20,475 resistance may have tempted short-term traders to book profits, which pulled the price below the moving averages. However, a minor positive is that the bulls are buying the dip to the uptrend line.

If the price breaks above the moving averages, the pair could again rise to $20,475. The bulls will have to push and sustain the price above this resistance to complete an ascending triangle pattern. If that happens, the pair could rally to the pattern target of $22,825.

This bullish pattern will be negated on a break and close below the uptrend line. If that were to happen, the selling could intensify and the pair may slide to the strong support of $18,125.

XRP/USDT

XRP bounced off the 20-day EMA ($0.47) on Oct. 3, indicating that lower levels are attracting buyers. The upsloping 20-day EMA and the RSI near the overbought zone suggest that bulls have the upper hand.

If the price rises and breaks above the overhead resistance at $0.56, the XRP/USDT pair could soar to $0.66. This level may again pose a strong challenge, but if bulls overcome it, the up-move could extend to $0.80.

Instead, if the price turns down from $0.56, the bears will again pull the pair to the 20-day EMA. If this support gives way, the pair could drop to the breakout level of $0.41. A strong bounce off this level could keep the price range-bound between $0.41 and $0.56 for some time.

*XRP/USDT 4-hour chart. Source: TradingView*

The pair has been gradually climbing toward the overhead resistance at $0.56. Both moving averages are sloping up gradually and the RSI is in positive territory, indicating that buyers have the edge.

The pair turned down from $0.53 but the bulls successfully defended the 20-day EMA. If buyers drive the price above the $0.53 to $0.56 resistance zone, the up-move could pick up momentum.

A break and close below the 20-day EMA will be the first sign that the bulls may be losing their grip. The pair could then drop to the 50-day SMA and, later, to $0.44.

UNI/USDT

Uniswap (UNI) has been trading above the moving averages, indicating that the bulls are attempting to resume the recovery. This is one of the reasons for including it in this analysis.

The price turned down from the overhead resistance at $7 but the bulls are attempting to stall the correction at the 20-day EMA ($6.42). If the price rebounds off the current level with strength, it will indicate that buyers are using the dips to accumulate.

The bulls will then again attempt to propel the price above the overhead resistance zone between $7 and $7.36. If they succeed, the UNI/USDT pair could rally to $8.67. Conversely, if the price turns down and breaks below $6, the pair could drop to the strong support at $5.66.

*UNI/USDT 4-hour chart. Source: TradingView*

The pair turned down sharply from the overhead resistance at $7 and broke below the moving averages. This suggests that the bears have the upper hand in the near term. If the price turns down from the moving averages, the selling could pick up and the pair may fall to $6.20 and later to $6.

To avoid this negative occurrence, the bulls will have to push and sustain the price above the moving averages. If that happens, the pair could once again retest the stiff resistance at $7. If this obstacle is cleared, the pair could rise to $7.36.

QNT/USDT

Quant (QNT) completed the inverse head and shoulders pattern on Sept. 27 and flipped the neckline into support on a retest on Oct. 2. The up-move resumed after the price broke above $147 on Oct. 8, indicating that buyers are in control.

The rally of the past few days has sent the RSI into overbought territory, and the QNT/USDT pair is near the overhead resistance at $162. This could cause trouble for the bulls, but the dips are likely to be bought.

If the price rebounds off the 20-day EMA, it would suggest that the sentiment has shifted from selling on rallies to buying on dips. That could increase the likelihood of a break above $162. If that happens, the pair could rally to $200 and thereafter to the pattern target of $230.

If bears want to invalidate this positive view, they will have to pull the price back below the neckline and the 50-day SMA ($112).

The pair has witnessed a sharp rally since breaking out of $147. Vertical rallies are rarely sustainable and often result in a consolidation or correction. In this case, the price may drop to the 20-day EMA, which is an important support for the bulls to defend.

If the price rebounds off this support, it will suggest that bulls continue to view the dips as a buying opportunity. A break and close above $162 could start the next leg of the up-move.

Alternatively, if the price turns down sharply from the current level and breaks below the 20-day EMA, it will suggest that the bulls may be rushing to the exit. That could sink the pair to $130.

EGLD/USDT

Elrond (EGLD) broke above the moving averages on Oct. 3, and the 20-day EMA ($51) has started to turn up, indicating a potential trend change in the near term. This is the reason for it being highlighted in this analysis.

The EGLD/USDT pair has been facing resistance near $57, but a positive sign is that the bulls have not given up much ground. This suggests that traders are not dumping their positions because they expect the recovery to resume.

If bulls thrust the price above $57, the pair could pick up momentum and rally to $62 and, thereafter, to $70.

On the other hand, if the price turns down from $57 and plummets below $53, the bears will pull the pair to the moving averages. If this support gives way, the pair could drop to the $47-to-$45 zone.

*EGLD/USDT 4-hour chart. Source: TradingView*

After the sharp rally from $47 to $57, the pair has been correcting inside a descending channel pattern. If buyers thrust the price above the channel, the pair could retest the resistance at $57. A break above this level could indicate the resumption of the uptrend.

Contrarily, if the price turns down and breaks below the 20-day EMA, it will suggest that the pair may spend some more time inside the channel. The bears will have to sink the price below the channel to open the doors for a possible decline to $50.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

5 altcoins that could turn bullish if Bitcoin price stabilizes

If Bitcoin price stabilizes and begins to consolidate, these five altcoins could see strong upside.

The major United States stock market indexes continued their decline last week as worsening macroeconomic conditions increased concerns of a global recession. The Dow Jones Industrial Average closed at its lowest level in 2022, and major indexes recorded their fifth weekly close in the past six weeks.

Although Bitcoin (BTC) has only declined marginally this week, it risks closing at the lowest level since 2020. While a new multi-year weekly close is a negative sign, sellers will have to sustain the lower levels or else it may turn out to be a bear trap. The price action of the next few days is likely to witness heightened volatility as both the bulls and the bears battle it out for supremacy.

Several investors miss opportunities to buy during sharp corrections because they try to catch the bottom. Traders should rather focus on the projects they like and accumulate the coins in a phased manner lasting a few weeks or months. All coins do not bottom at the same time, hence it is better to focus on individual cryptocurrencies that show strength.

While Bitcoin is nearing its yearly lows, certain altcoins are holding up well. Let’s look at the charts of five cryptocurrencies that look interesting in the near term.

BTC/USDT

The Bitcoin bulls have successfully defended the $18,626 to $17,622 support zone in the past few days but they continue to face strong selling at the 20-day exponential moving average (EMA) of $19,720. This suggests that the bears continue to sell on minor rallies.

The downsloping moving averages indicate that the bears have the upper hand but the positive divergence on the relative strength index (RSI) suggests that the bearish momentum could be weakening.

A break and close above the 20-day EMA will be the first sign that the bears may be losing their grip. The BTC/Tether (USDT) pair could then rise to the 50-day simple moving average (SMA) of $21,043 and later to $22,799. Buyers will have to overcome this barrier to set the stage for a rally to $25,211.

Conversely, if the bears sink the price below the June low of $17,622, the selling could intensify, and the pair may resume its downtrend. The pair could then plummet to $14,500.

The bulls are buying the dip below $18,626 but the bears continue to stall the recovery at the 50-SMA. This has squeezed the price between these two levels, but this tight range trading is unlikely to continue for long.

If the price turns down and sustains below $18,626, the bears may pull the pair to the vital support at $17,622. This level may again witness a strong battle between the bulls and the bears. On the upside, if the bulls thrust the price above the 50-SMA, the pair could rise to $20,400.

ATOM/USDT

Cosmos (ATOM) has been trading above the breakout level of $13.46 for the past several days, indicating that the sentiment remains positive and traders are buying on dips.

The 20-day EMA of $14.22 has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If the price breaks above $15.26, the short-term advantage could tilt in favor of the buyers. The ATOM/USDT pair could then rise to $17.20.

This level may again act as a resistance but if buyers thrust the price above it, the pair could pick up momentum and rise to $20.34 and later to $25.

Contrary to this assumption, if the price turns down and breaks below the 50-day SMA of $12.90, the advantage could tilt in favor of the bears. The pair could then decline to $10.

*ATOM/USDT 4-hour chart. Source: TradingView*

The pair has been stuck between $13.45 and $17 for some time. Buyers aggressively defended the support at $13.45 and are attempting to push the price above the 50-SMA. If they do that, the likelihood of a rally to $16 and thereafter to $17 increases.

Conversely, if the price turns down from the current level and breaks below the 20-EMA, it will suggest that bears continue to sell on rallies. That could pull the price to the strong support at $13.45. The sellers will have to sink the pair below $13 to clear the path for a possible drop to $11.50.

ALGO/USDT

The uncertainty of the range-bound action between $0.27 and $0.38 resolved to the upside on Sept. 23, indicating the start of a new up-move. If that happens, Algorand (ALGO) could still be in its first leg of the uptrend.

The important level to watch on the downside is $0.38. If the bulls flip this level into support, it could increase the likelihood of the start of a new uptrend. The ALGO/USDT pair could then rally to $0.45 and later to $0.50.

This bullish view could invalidate in the near term if the price slips below $0.38 and re-enters the range. That could sink the price to the 20-day EMA of $0.33. If the price rebounds off this level, the bulls will again try to clear the overhead resistance.

*ALGO/USDT 4-hour chart. Source: TradingView*

The price rose above the overhead resistance at $0.38, but the bulls could not build upon this momentum. This shows that the bears have not yet given up and they continue to sell on rallies near $0.41.

If thebears pull the price below the 20-EMA, the pair could drop to $0.36. This is an important level for the bulls to defend because a break below it could open the doors for a possible drop to the 50-SMA.

On the upside, the bulls will have to push the price above $0.41 to signal the resumption of the up-move.

CHZ/USDT

Chiliz (CHZ) recovered sharply from its June lows and the bulls cleared the overhead resistance at $0.26 on Sept. 22, signaling the resumption of the up-move. When a coin moves against the market sentiment, it warrants a close look.

The bears have been trying to sink the price below the breakout level of $0.26 for the past three days but the bulls have held their ground. This shows that the bulls are viewing the dips as a buying opportunity. The rising moving averages and the RSI in the positive territory indicate that buyers are in command.

If the price turns up and breaks above $0.28, the CHZ/USDT pair could rally to the next stiff resistance at $0.33.

Conversely, if the price turns down and breaks below $0.26, it will suggest that traders may be rushing to the exit. The pair could first drop to the 20-day EMA of $0.23 and later to the 50-day SMA of $0.21.

Both moving averages are sloping up indicating an advantage to buyers but the negative divergence on the RSI shows that the bullish momentum may be weakening. If the bears sink the price below $0.26, the pair could drop to the 50-SMA. This is a key level for the bulls to defend because if it gives way, the pair could drop to $0.22.

On the other hand, if the price rebounds off $0.26 and rises above $0.28, the up-move could resume. The pair could then rally to $0.32.

QNT/USDT

Quant (QNT) is showing strength as it is trading above both moving averages. Even when the sentiment across the cryptocurrency sector has been negative, it has managed to charge higher.

The bears had been defending the $112 level for the past many days but the bulls pierced through the resistance on Sept. 24 and pushed the price to the downtrend line. The long wick on the day’s candlestick shows that the bears are trying to stall the up-move at this level.

A minor positive is that the bulls bought the dip to $112 on Sept. 25, suggesting that buyers are trying to flip this level into support. The QNT/USDT pair could once again rise to the downtrend line. If this hurdle is cleared, the pair could soar to $133 and later to $154.

Alternatively, if the price turns down and breaks below $112, the next stop could be the 20-day EMA of $106. A break below this support could pull the pair to $95.

The pair picked up momentum after breaking above $112 and reached near the downtrend line. This pushed the RSI into the overbought territory, which may have tempted the short-term traders to book profits.

The price rebounded off $112, indicating that the sentiment remains positive and traders are buying on dips. The pair could rise to $121 and thereafter to the downtrend line. On the downside, a break below $112 could sink the pair to the 50-SMA and thereafter to $95.

Crypto traders eye ATOM, APE, CHZ and QNT as Bitcoin flashes bottom signs

Bitcoin, ATOM, APE, CHZ and QNT are facing resistance at higher levels, but the chart patterns suggest that the current recovery may extend for a few more days.

The United States equities markets rallied sharply last week, ending a three-week losing streak. The S&P 500 rose 3.65% last week while the Nasdaq Composite soared 4.14%. Continuing its close correlation with the U.S. equities markets, Bitcoin (BTC) also made a strong comeback and is trying to end the week with gains of more than 7%.

The sharp rally in the stock markets and cryptocurrency markets are showing signs of a bottoming formation but it may be too early to predict the start of a new bull move. The equities markets may remain on the edge before the release of the U.S. inflation data on Sept. 13 and the Federal Reserve meeting on Sept. 20-21.

Along with taking cues from the equities markets, the cryptocurrency space has its own important events to look forward to. Both the Ethereum Merge and Cardano’s Vasil hard fork scheduled in the next few days could heighten volatility in several cryptocurrencies.

Although choppy markets increase the risk, they may offer short-term trading opportunities to nimble traders. Let’s study the charts of five cryptocurrencies that look interesting in the near term.

BTC/USDT

Bitcoin soared above the 20-day exponential moving average (EMA) of $20,662 on Sept. 9, which was the first indication that the selling pressure could be reducing. The bears are attempting to stall the recovery at the 50-day simple moving average (SMA) of $21,946, but a positive sign is that the bulls have not given up much ground.

The 20-day EMA has started to slope up gradually and the relative strength index (RSI) is in the positive territory indicating that the path of least resistance is to the upside. If the bulls propel the price above the 50-day SMA, the BTC/Tether (USDT) pair could rally toward the stiff overhead resistance at $25,211. The bears are expected to defend this level with vigor.

Another possibility is that the price turns down from the 50-day SMA. If that happens, the pair may drop to the 20-day EMA. This is an important level to keep an eye on because a break and close below it could open the doors for a drop to $18,626. Alternatively, if the price rebounds off the 20-day EMA, it will increase the likelihood of a break above the 50-day SMA.

The pair picked up momentum after rising above the breakdown level of $19,520. The sharp rally pushed the RSI into the overbought territory, suggesting a minor consolidation or correction. Buyers are facing a stiff challenge near $22,000 but they have not ceded ground to the bears. This suggests that every minor dip is being purchased.

If the bulls propel the price above $22,000, the pair could quickly rally toward $23,500 where the bears may again attempt to stall the up-move.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, the pair could drop to $20,576. A break below this level will suggest that the pair may consolidate in a large range between $22,000 and $18,626 for some time.

ATOM/USDT

Cosmos (ATOM) broke above the overhead resistance of $13.45 on Sept. 8, indicating demand at higher levels. The next stiff resistance is at $20.30, which leaves room for a rally.

However, before that, the bears will try to pull the price below the breakout level of $13.45. This is an important level to keep an eye on because a break and close below it will indicate that the recent breakout may have been a bull trap.

On the other hand, if the price turns up from the current level or rebounds off $13.45, it will suggest that the bulls are in control and are buying on every dip. If the bulls thrust the price above $17.20, the up-move may pick up momentum and reach $20.30.

The 4-hour chart shows that the ATOM/USDT pair surged after breaking above the overhead resistance at $13.45. That pushed the RSI deep into the overbought territory and started a correction, but a positive sign is that the bulls have not given up much ground.

If the price rebounds off the current level, the possibility of a break above $17.20 increases. If that happens, the up-move may continue and the pair may rally toward $20.30.

This positive view could invalidate in the near term if the price continues lower and plummets below the 20-EMA. If that happens, the pair could decline to the 50% Fibonacci retracement level of $14.36.

APE/USDT

ApeCoin (APE) rebounded strongly off the support at $4.17, indicating aggressive buying at lower levels. This suggests that the corrective phase could be ending, making it an interesting candidate for the short term.

Buyers pushed the price above the 20-day EMA of $5.00 on Sept. 9 and the APE/USDT pair formed an inside-day Doji candlestick pattern on Sept. 10. This uncertainty resolved to the upside on Sept. 11 with a strong rally to the 50-day SMA of $5.85. The bears may try to stall the recovery at this level.

If the price turns down from the current level but rebounds off the 20-day EMA, it will suggest that the sentiment has turned positive and traders are buying on dips. The bulls will then again attempt to drive the price above the 50-day SMA. If they do that, the pair could soar toward the overhead resistance at $7.80.

This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. In that case, the pair may drop to $4.17.

*APE/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart has started to turn up and the RSI has risen into the overbought territory. This indicates that the bulls have the upper hand but a short-term pullback is possible.

If the price turns down from the current level but rebounds off $5.30, it will suggest strong demand at lower levels. The bulls will then make another attempt to push the price above $5.83 and extend the recovery to $6.44.

Alternatively, if the price turns down and breaks below the 20-EMA, the advantage may tilt in favor of the bears.

CHZ/USDT

Chiliz (CHZ) broke above the 20-day EMA of $0.20 on Sept. 9, which was the first indication that the corrective phase may be ending. Hence, this token made it to the list.

The bears tried to pull the price back below the 20-day EMA on Sept. 10, but the bulls have held their ground. Buyers are attempting to push the price toward the overhead resistance at $0.26, but the up-move may face strong headwinds near $0.23.

If the price turns down but does not fall below the 20-day EMA, it will increase the likelihood of a rally to $0.26. Contrary to this assumption, if the price turns down and breaks below $0.20, it will suggest that the bears are active at higher levels. That could pull the price to the 50-day SMA of $0.18.

The 4-hour chart shows that the bears are defending the downtrend line. If the price turns down from the current level but rebounds off the moving averages, it will suggest that the bulls are attempting a comeback.

Buyers will then again attempt to drive the price above the downtrend line. If they succeed, the pair may start its northward march toward $0.23 and later to $0.26.

Alternatively, if the price plummets below $0.20, it will suggest that the pair may remain inside the falling wedge pattern. That could pull the price down to $0.18.

QNT/USDT

Quant (QNT) did not break below the strong support at $87.60, indicating that the sentiment is positive and the bulls are buying on dips. That is the reason for its selection.

The sharp rebound off $87.60 broke above the 20-day EMA of $100 on Sept. 8, which was the first indication that the corrective phase may be ending. The bears posed a strong challenge near the 50-day SMA of $105 but could not sink the price back below the 20-day EMA.

This indicated that the sentiment had turned positive and the bulls are buying on dips. Buyers pushed the QNT/USDT pair above the 50-day SMA on Sept. 11. If the bulls sustain the higher levels, the pair could rise to $117 and then to $124. A break above this level could open the doors for a rally to $130.

This bullish view could be invalidated if the price turns down and breaks below the 20-day EMA. If that happens, the pair could drop to the strong support at $87.60.

The 4-hour chart shows that the pair rebounded sharply off the support at $87.60. The bears posed a strong challenge near $108 but a positive sign is that the bulls purchased the dip to the 20-EMA. This indicates that traders are viewing dips as a buying opportunity.

Buyers resumed the recovery by pushing the price above the overhead resistance at $108. The pair could rally to $113 and later to $117. Conversely, if the price turns down and plummets below the 20-EMA, the pair could drop to the 50-SMA.

Here’s 5 cryptocurrencies with bullish setups that are on the verge of a breakout

Bitcoin, BNB, EOS, QNT and CHZ are flashing bullish technical analysis setups which could lure buyers if the wider market enters a relief rally this week.

The S&P 500 ended its four-week-long recovery last week after minutes from the Federal Reserve’s July meeting hinted that the central bank’s rate hikes will continue until inflation is under control. Members of the Fed said there was no evidence that inflation pressures appear to be easing.

Another dampener was the statement by St. Louis Fed president James Bullard who said that he would support a 75 basis point rate hike in September’s Fed policy meeting. This reduced hopes that the era of aggressive rate hikes may be over.

Weakening sentiment pulled the S&P 500 lower by 1.29% for the week. Continuing its close correlation with the S&P 500, Bitcoin (BTC) also witnessed a sharp decline on Aug. 19 and is likely to end the week with steep losses.

Will bulls use the dips to accumulate at lower levels? If they do, let’s study the charts of the top-5 cryptocurrencies that may attract buyers because of their bullish setups.

BTC/USDT

Bitcoin slipped below the 20-day exponential moving average (EMA) of $22,864 on Aug. 17 and then below the 50-day simple moving average (SMA) of $22,318 on Aug. 19. The bulls are attempting to arrest the decline at the support line of the ascending channel.

The 20-day EMA has started to turn down and the relative strength index (RSI) is in negative territory, indicating advantage to bears. If the price reverses direction from the moving averages, it will suggest that bears are selling on rallies.

That could increase the possibility of a break below the support line of the channel. If that happens, the crucial support zone of $18,626 to $17,622 may come under attack.

To avoid this situation, the bulls will have to push and sustain the price above the moving averages. If they do that, the BTC/Tether (USDT) pair could rise toward the resistance line of the channel.

The buyers are aggressively defending the support line of the channel, but the downsloping moving averages and the RSI in the negative territory suggest that higher levels are likely to attract selling by the bears.

If the price turns down from the current level or the 20-EMA, the likelihood of a break below the channel increases. If that happens, the bearish momentum could pick up and the pair could drop toward $18,626.

The first sign of strength will be a break above the 20-EMA. Such a move will indicate that the selling pressure may be reducing. That could improve the prospects of a rally to the 50-SMA.

BNB/USDT

Binance Coin (BNB) turned down from the overhead resistance at $338 but the bulls successfully defended the strong support at $275. This indicates a positive sentiment as the bulls are viewing the dips as a buying opportunity.

The recovery may face resistance at the 20-day EMA of $301. If the price turns down from this level, the bears will again try to sink the BNB/USDT pair below $275. If that happens, it will suggest that the pair may oscillate in a large range between $183 and $338 for some time.

On the contrary, if bulls push the price above the 20-day EMA, the pair could rise to $338. A break and close above this level could complete a bullish head and shoulders pattern. That could start a rally to $413 and then to the pattern target at $493.

*BNB/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart has started to turn up and the RSI is near the midpoint, indicating that the selling pressure may be reducing. If the price sustains above the 20-EMA, the pair could rise to the 50-SMA. A break and close above this resistance could increase the possibility of a rally to $338.

Conversely, if the price turns down and breaks below the 20-EMA, the pair could again drop to the critical support at $275. If this level cracks, the pair will complete a bearish heads and shoulders pattern and drop toward $240.

EOS/USDT

EOS has formed the bullish inverse head and shoulders setup. The buyers pushed the price above the overhead resistance at $1.46 on Aug. 17 but the long wick on the day’s candlestick shows strong selling at higher levels.

The bears pulled the price back below the breakout level of $1.46 on Aug. 19 but the positive sign is that the buyers did not allow the EOS/USDT pair to sustain below the 20-day EMA ($1.32). This indicates that lower levels are attracting buyers.

If bulls sustain the price above $1.46, the positive momentum could pick up and the pair may rally to $1.83. If this resistance is also scaled, the rally could extend to the pattern target of $2.11.

This positive view could invalidate if the price turns down and breaks below $1.24. The pair could then decline to the 50-day SMA ($1.17).

*EOS/USDT 4-hour chart. Source: TradingView*

The rally above $1.46 on Aug. 17 pushed the RSI on the 4-hour chart to deeply overbought levels. This may have tempted short-term buyers to book profits, which pulled the price to the strong support at $1.24. The bulls purchased the dip to this level and have again propelled the pair above the overhead hurdle at $1.46.

The pair could now rally to $1.56 and then to the important resistance at $1.83. Alternatively, if the price turns down from the current level and breaks below the moving averages, it will suggest that the pair could remain range-bound for a few days.

QNT/USDT

The series of higher highs and higher lows suggest that Quant (QNT) is in a short-term uptrend. The bulls purchased the drop to the 50-day SMA of $100 and are attempting to resume the up-move.

If the price sustains above the 20-day EMA of $111, it will suggest that the correction may be over. The QNT/USDT pair could first rise to $124 and then retest the important resistance at $133. If bulls clear this hurdle, the pair could rally to the overhead resistance zone between $154 and $162.

Contrary to this assumption, if the price fails to sustain above the 20-day EMA, it will indicate that traders may be closing their positions on rallies. The bears will have to sink the price below $98 to gain the upper hand and signal the start of a deeper correction to $79.

The pair has been correcting inside a falling wedge pattern. The buyers pushed the price above the resistance line of the pattern but could not sustain the breakout. This suggests that bears are active at higher levels.

If the price sustains below the 50-SMA, the pair could slide to the 20-EMA. This is an important level to watch out for. If the price rebounds off this level, it will suggest that the short-term trend has turned in favor of the buyers.

A break and close above $118 could indicate that the corrective phase may be over. Conversely, if the price slips below the 20-EMA, the pair may drop to $100.

CHZ/USDT

Chiliz (CHZ) soared to $0.23 on Aug. 18 which pushed the RSI deep into the overbought territory. This may have tempted short-term traders to book profits and that pulled the price back below the breakout level of $0.20.

A minor positive is that the bulls are attempting to defend the 20-day EMA of $0.17 and push the price back above $0.20. If they succeed, it will suggest that the sentiment remains positive and traders are buying on dips. That increases the likelihood of a retest of $0.23. If bulls clear this hurdle, the CHZ/USDT pair could pick up momentum and rally to $0.26.

Contrary to this assumption, if the price fails to rise above $0.20, it will suggest that bears are selling on rallies. The bears will be back in the driver’s seat if they sink the pair below the 20-day EMA. The pair could then decline to the 50-day SMA of $0.13.

The bulls are trying to defend the uptrend line but the recovery is facing strong resistance at the moving averages. The moving averages completed a bearish crossover on the 4-hour chart and the RSI is in the negative territory, indicating a minor advantage to sellers.

If the price turns down and breaks below the uptrend line, the selling could intensify and the pair may drop to $0.16 and then to $0.14. Such a move will indicate that the bears remain in control.

Instead, if the price breaks above the moving averages, the bulls will try to push the pair to $0.21 and later challenge the resistance at $0.23.

Top 5 cryptocurrencies to watch this week: BTC, FLOW, THETA, QNT, MKR

Select altcoins such as FLOW, THETA, QNT and MKR could rally if Bitcoin breaks above the stiff overhead resistance at $24,668.

The United States jobs data on Aug. 5 was above market expectations, indicating that inflation has not cooled down. The strong numbers reduce the possibility that the U.S. Federal Reserve will slow down its aggressive pace of rate hikes. After the release, the likelihood of a 75 basis points hike in September has risen to 68%, according to CME Group data.

However, analysts at Fundstrat Global Advisors have a different view. They highlighted that three out of six times, the S&P 500 bottomed out six months before the Fed’s last rate hike. Therefore, the firm anticipates the S&P 500 to witness a strong rally to 4,800 in the second half of the year.

If the tight correlation between the equities markets and the cryptocurrency markets maintain, the recovery in the crypto markets may have some more room to run. On-chain monitoring resource Material Indicators said in a Twitter update on Aug. 5 that if Bitcoin (BTC) rises above $25,000, there is no major resistance till the $26,000 to $28,000 range.

Could Bitcoin climb above the overhead resistance and extend its recovery, pulling select altcoins higher? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

BTC/USDT

Bitcoin has been trading close to the 20-day exponential moving average (EMA) of $22,719 for the past few days, indicating a tough battle between the bulls and the bears. Although the bulls have held the level, they have not been able to achieve a strong rebound off it. This indicates a lack of demand at higher levels.

Both moving averages have flattened out and the relative strength index (RSI) is just above the midpoint, indicating a balance between buyers and sellers. The advantage could tilt in favor of the buyers if they push and sustain the price above $24,668.

If they manage to do that, the BTC/Tether (USDT) pair could rally to $28,000 and then to the next overhead resistance at $32,000.

Contrary to this assumption, if bears pull the price below the 20-day EMA, the pair could decline to the 50-day simple moving average (SMA) of $21,719. If this support also gives way, the next stop could be the uptrend line.

The price is stuck between $22,400 and $23,648 on the 4-hour chart. Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If bulls drive the price above $23,648, the pair could rise to the overhead resistance at $24,668.

Conversely, if the price turns down and breaks below $22,400, it will tilt the short-term advantage in favor of the bears. The pair could then decline to the uptrend line, which could act as a strong support.

FLOW/USDT

The tight range trading in Flow (FLOW) resolved to the upside with the range expansion on Aug. 4. This indicates accumulation at lower levels and the start of a new up-move.

The bears are attempting to stall the up-move near $3.00 but a minor positive is that the bulls have not given up much ground. This indicates that traders are not hurrying to book profits after the recent rally.

The 20-day EMA of $2.07 has started to turn up and the RSI is near the overbought zone, indicating that bulls have the upper hand. If buyers drive the price above the $3.00 to $3.30 resistance zone, the FLOW/USDT pair could pick up momentum and rally toward $4.60.

*FLOW/USDT 4-hour chart. Source: TradingView*

The pair has turned down from the overhead resistance near $3.00 but is finding support at the 20-EMA on the 4-hour chart. If bulls push the price above $2.80, the pair could retest the overhead resistance at $2.99. A break above this level could signal the resumption of the uptrend.

Alternatively, if the price slips below the 20-EMA, the pair could drop to the 50% Fibonacci retracement level of $2.41, and then to the 61.8% retracement level of $2.27. A break below this level could tilt the advantage in favor of the bears and sink the pair to $2.00.

THETA/USDT

Theta Network (THETA) broke and closed above the stiff overhead resistance at $1.55 on Aug. 5, indicating that the range had resolved in favor of the bulls. The bears tried to sink the price back below the breakout level on Aug. 6 but the bulls held their ground.

The 20-day EMA of $1.39 has started to turn up and the RSI is in the positive territory, indicating advantage to buyers. If bulls sustain the price above $1.65, the THETA/USDT pair could start a new uptrend toward the pattern target of $2.10. This level may pose a strong challenge but if bulls clear this overhead hurdle, the pair could extend its rally to $2.60.

To invalidate this positive view, the bears will have to pull and sustain the price below $1.55. If that happens, the aggressive bulls may get trapped and the pair could slide to the moving averages.

*THETA/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls purchased the dip to the 20-EMA, indicating buying on dips. Both moving averages on the 4-hour chart are sloping up and the RSI is near the overbought territory, indicating that the path of least resistance is to the upside. If bulls maintain the price above $1.65, the up-move may resume.

The first sign of weakness will be a break and close below the 20-EMA. If that happens, the pair could drop to the 50-SMA. The bears will have to sink the price below this level to signal that the uptrend may have ended in the near term.

QNT/USDT

Quant (QNT) made a strong recovery from its intraday low of $40 made on June 13. The bears tried to stall the up-move at $115 but the bulls aggressively purchased the dip below the 20-day EMA of $103 on July 26.

The bulls maintained their momentum and pushed the price above the overhead resistance at $115 on Aug. 6. This indicated the resumption of the uptrend. The QNT/USDT pair could rally to the overhead resistance zone between $154 to $162 where the bears may mount a strong defense.

Alternatively, if the price turns down from the current level, the bulls will attempt to flip the $115 level into support. If that happens, the pair could resume its uptrend. The bears will have to sink and sustain the price below the 20-day EMA to gain the upper hand.

The pair is in an uptrend but the RSI on the 4-hour chart jumped into the overbought territory, indicating the possibility of a near-term correction. The bulls are expected to buy the dips to the 20-EMA. If they do that, it will suggest that the sentiment remains positive and traders are buying on dips. That will increase the likelihood of the resumption of the uptrend.

On the contrary, if the price turns down from the current level and breaks below the 20-EMA, the pair could slide to the 50-SMA. This is an important level to keep an eye on because a break below it could result in a fall to $100.

MKR/USDT

Maker’s (MKR) recovery is facing stiff resistance near $1,100 but a positive sign is that the bulls have not allowed the price to dip below the 20-day EMA of $1,044.

The moving averages are sloping up and the RSI is in the positive territory, indicating that buyers have the upper hand.

If bulls push and sustain the price above the overhead resistance zone between $1,100 and $1,188, the MKR/USDT pair could rally to $1,400 and then to the pattern target of $1,570. Such a move will suggest that the pair may have bottomed out.

Contrary to this assumption, if the price turns down from the overhead resistance and breaks below the 20-day EMA, the pair could slide to the trendline. A break and close below this level will invalidate the bullish setup.

*MKR/USDT 4-hour chart. Source: TradingView*

The pair has formed a symmetrical triangle on the 4-hour chart. The 20-EMA is sloping up gradually and the RSI is in the positive zone, indicating a slight advantage to the bulls.

If buyers drive the price above the resistance line, the pair could rally to the overhead resistance at $1,188. A break and close above this level could indicate the resumption of the uptrend.

Conversely, a break below the support line of the triangle could tilt the advantage in favor of the sellers. The pair could then decline to the psychological level at $1,000.

Top 5 cryptocurrencies to watch this week: BTC, UNI, ICP, AAVE, QNT

Bitcoin is trending toward a retest of its lower support and if this happens, UNI, ICP, AAVE and QNT could breakout to the upside.

Bitcoin (BTC) has given up ground over the weekend as investors remain cautious about the United States consumer inflation data to be released on July 13. Analysts anticipate June’s consumer price index to be higher than May’s 8.6% level.

Due to the macro uncertainty, investors are not confident that Bitcoin’s correction is over. However, Fidelity Investments’ director of global macro, Jurrien Timmer, said that Bitcoin is back at the 2013 bull market levels “if the price per millions of non-zero addresses“ is considered for valuing it. That implies that “Bitcoin is cheap.”

The readings on the Reserve Risk indicator, which shows long-term holder sentiment, plunged to a new all-time low in July. Commentator Murad said this meant that “we are in the high timeframe bottoming zone” or the indicator may be broken.

Could Bitcoin turn around and start a new rally or will it continue lower? Are altcoins showing signs of bottoming out? Let’s study the charts of the top-5 cryptocurrencies to find out.

BTC/USDT

Bitcoin broke above the symmetrical triangle pattern on July 7 but the bulls could not sustain the momentum at higher levels. This suggests that the bears have not surrendered and are attempting to defend the overhead resistance at $23,363.

The bears are attempting to sustain the price below the 20-day exponential moving average (EMA) of $21,230. If they succeed, the BTC/Tether (USDT) pair could decline to the support line of the triangle.

If the price rebounds off this level, it will suggest that bulls continue to buy at lower levels. The bulls will then again strive to push the price above the overhead resistance at $23,363 and the 50-day simple moving average (SMA) of $24,692. If they succeed, it could signal the start of a new up-move.

On the contrary, if the price breaks below the support line, the bears will endeavor to pull the pair below $17,622.

The bears pulled the price below the 20-EMA but a minor positive is that the bulls are trying to defend the 50-SMA. This indicates accumulation at lower levels. If bulls thrust the price back above the 20-EMA, the pair could rise toward $22,500.

Alternatively, if the price turns down from the 20-EMA, the likelihood of a break below the 50-SMA increases. If that happens, the pair could extend its decline to $19,300. The flattening 20-EMA and the relative strength index (RSI) just below the midpoint do not give a clear advantage to the bulls or bears.

UNI/USDT

Uniswap (UNI) broke above the overhead resistance at $6.08, which completed a bullish inverse head and shoulders pattern. The bears are attempting to pull the price back below the breakout level.

If they manage to do that, it will suggest that the rise above $6.08 may have been a bull trap. That could pull the price toward the 20-day EMA of $5.39. If the price rebounds off this level with strength, it could increase the possibility of a break above $6.62. The pair could then pick up momentum and rally toward the pattern target of $8.78.

Conversely, if the price breaks below the moving averages, it will suggest that the bullish momentum has weakened. The UNI/USDT pair could then remain range-bound for a few days.

The bears pulled the price below the breakout level of $6.08 but the strong rebound off the 20-EMA shows aggressive buying at lower levels. The buyers will make another attempt to push the price above $6.62 and resume the uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will suggest that the bears are trying to trap the aggressive bulls. The pair could then drop to the 50-SMA. If this level also cracks, the decline could extend to $4.60.

ICP/USDT

Internet Computer (ICP) rose above the 50-day SMA of $6.48 on July 8, indicating that the bulls are attempting to form a bottom. The moving averages are close to completing a bullish crossover and the RSI is in the positive zone, suggesting that the bears may be losing their grip.

If the price rebounds off the moving averages, it will suggest that the bulls have flipped the level into support. That could open the doors for a possible rally to the psychological level of $10, where the bears may again pose a strong challenge.

Alternatively, if the price turns down and breaks below the moving averages, it will indicate that the bears continue to sell aggressively at higher levels. The ICP/USDT pair could then drop to $5.00, which is likely to act as a strong support.

*ICP/USDT 4-hour chart. Source: TradingView*

The long wicks on several candlesticks above $7.00 indicate that bears have not yet given up and they continue to sell on rallies. The bears pulled the price back below the 20-EMA but a minor positive is that the bulls aggressively purchased the dip. This suggests demand at lower levels.

The buyers are trying to push the price back above the 20-EMA. If they succeed, the pair could rise to $6.70 and later to $7.00.

Contrary to this assumption, if the price turns down from the overhead resistance and slips below $6.30, the pair could slide to the 50-SMA.

AAVE/USDT

Aave’s (AAVE) recovery rose above the 50-day SMA of $79 on July 9, indicating a likely change in trend. The 20-day EMA of $68 has started to turn up and the RSI is in the positive zone, indicating that bulls are attempting to gain the upper hand.

If bulls sustain the price above the 50-day SMA, the AAVE/USDT pair could pick up momentum and rally toward the psychological resistance at $100. This level may act as a strong hurdle, but if bulls arrest the next decline above the 50-day SMA, it will suggest that buyers are back in the game. The pair could then attempt a rally to $120.

Contrary to this assumption, if the price sustains below the 50-day SMA, it will suggest that bears continue to sell on rallies. The bears will then strive to sink the pair below the 20-day EMA and trap the aggressive bulls.

*AAVE/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the pair broke above $78 and completed a bullish ascending triangle pattern. The bears pulled the price back below the breakout level, but a positive sign is that the buyers are defending the 20-EMA.

If the price rises and breaks above $83, the pair could pick up momentum and rally to $93. The pattern target of this bullish setup is $110.

The bears will have to sink the price back below the 20-EMA to invalidate this positive view. That could open the doors for a possible drop to the 50-SMA.

QNT/USDT

Quant (QNT) has risen sharply in the past few days, indicating that a bottom may be in place. The momentum picked up after buyers pushed the price above $67.

The moving averages have completed a bullish crossover and the RSI is in the positive zone, signaling a possible trend change. The up-move is facing a strong hurdle near $90.

If the price turns down from this resistance but rebounds off the 20-day EMA of $64, it will suggest that the sentiment has turned positive and traders are buying on dips. That could enhance the prospects of a rally to the psychological level of $100.

This positive view could invalidate in the short term if the price continues lower and breaks back below $67.

The sellers are attempting to stall the up-move at $90 but the upsloping moving averages and the RSI in the positive territory indicate that bulls have the upper hand. If the price rebounds off the 20-EMA, the buyers could again push the price toward $90. A break and close above this resistance could signal the resumption of the short-term uptrend.

This positive view could be invalidated in the near term if the price turns down and breaks below the 20-EMA. The pair could then decline to the 50-SMA.