After forming successive 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 resolving to the upside.
Although the recovery is still in its early stages, the Federal Open Market Committee meeting on September 20 could increase volatility. Most market participants expect that Federal Reserve will maintain the status quo on rates, but surprises could emerge during Fed Chair Jerome Powell's press conference following the rate decision.
Bitcoin's recovery from strong support near $24,800 has sparked buying interest in select altcoins, which are providing trading opportunities. For these altcoins to continue their upward trajectory, Bitcoin must stay above $26,500.
Could Bitcoin's relief rally gain momentum and spark buying of select altcoins? Let's study the charts of the top 5 cryptocurrencies that show promise 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 reducing. Since then, the bulls thwarted several attempts by the bears to push the price back below the 20-day EMA.
Buyers will try to press their advantage and take the BTC/USDT pair to the 50-day simple moving average ($27,295). This level may act as a minor hurdle, but if it is overcome, the pair is likely to reach $28,143. The bears are expected to defend this level vigorously.
If the bears want to maintain the advantage, they will have to lower the price below the 20-day EMA. That may trap aggressive bulls and open the doors to a possible retest of the critical support at $24,800.
The price has been trading above the 20 EMA on the 4-hour chart, indicating that the bulls are buying the dips. This suggests that traders expect the recovery to continue. If buyers clear the hurdle of $26,900, the pair may rise to $27,600 and eventually $28,143.
If the bears want to make a comeback, they will have to sink and keep the price below the 20-EMA. Such a move will clear the way for a fresh decline towards the 50 SMA and then towards the strong support zone between $25,600 and $25,300.
Manufacturer price analysis.
Buyers boosted Maker (MSEK) above the 50-day SMA ($1,162) on September 15, indicating that the bulls are attempting to take control.
The MKR/USDT pair is on its way to $1,370. This level is likely to witness a tough battle between bulls and bears. If the bulls do not give up much ground from this level, the probability of a breakout above it increases. If that happens, the pair could gain momentum and rush towards $1,759.
The crucial level to watch on the downside is the 20-day EMA ($1,162). If this level is broken, it will suggest that the pair may oscillate within the wide range between $980 and $1,370 for some time.
The 4-hour chart shows that the bulls are still in control, but the RSI near overbought territory suggests a minor correction or consolidation in the near term. The 20-day EMA remains the key level to watch on the downside. A break and close below could signal the start of a deeper correction towards the 50-SMA.
Instead, if the price bounces off the 20 EMA, it will be a sign that the bulls continue to buy the dips. That may start a rally towards the stiff overhead resistance of $1,370.
Aave Price Analysis
Ghost (GHOST) surpassed the moving averages on September 16, indicating that the bulls have made their move. However, the long wick of the day's candle shows selling at higher levels.
A small advantage in favor of the bulls is that they did not allow the bears to return and are again trying to keep the price above the 50-day SMA ($59). If they are successful, the AAVE/USDT pair is likely to accelerate towards $70 and then $76.
The 20-day EMA ($56) is the important support to pay attention to in the short term. If the price falls below this level, it will suggest that the bears are active at higher levels. That could sink the pair to the solid support at $48.
The 4-hour chart shows that the bulls recently bought the pullback to the 20-day EMA, indicating that sentiment has turned positive. Buyers will try to push the price above the $63 resistance. If they can achieve this, the pair could skyrocket to $70.
Contrary to this assumption, if the price turns down and breaks below the 20 EMA, it will suggest that demand dries up at higher levels. Then, the pair could slide towards the 50-SMA, which may attract buyers.
Related: How low can the price of Bitcoin go?
THORChain Price Analysis
THORString (RUNE) has seen a smart recovery in recent days, indicating that buyers are trying to return.
The bullish movement is approaching the solid resistance at $2, which is likely to act as a major hurdle. If the price drops sharply from $2, it will indicate that the bulls are rushing towards the exit. That could push the price down to the 20-day EMA ($1.62).
On the contrary, if the RUNE/USDT pair does not give much ground from the current level, it will suggest that the bulls are holding their positions as they anticipate the rally to extend further. If $2 is withdrawn, the pair could start a new uptrend to $2.30 and subsequently to $2.80.
The 4-hour chart shows that the $2 level is acting as resistance. The price may pull back towards the 20 EMA, which will likely act as strong support. If the price rebounds strongly from this level, the bulls will again try to overcome the $2 hurdle. If they manage to do so, the pair may shoot towards $2.30.
The first sign of weakness will be a break and close below the 20 EMA. That could tempt several short-term traders to book profits. Then, the pair may fall to the 50-SMA.
Render Price Analysis
Render (RNDR) broke and closed above the 50-day SMA ($1.58) on September 15, indicating that selling pressure may be easing.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bulls have a slight advantage. If the price rises from the 20-day EMA ($1.50), it will suggest a shift in sentiment from selling on rallies to buying on dips. That could start a stronger recovery to $1.83 and then $2.20.
This positive view could be invalidated in the short term if the price continues to decline and falls below the moving averages. The RNDR/USDT pair could fall to $1.38 and then $1.29.
The moving averages on the 4-hour chart are rising and the RSI is in positive territory, indicating advantage for buyers. The first support to watch on the downside is the 20-EMA. If the price rises from this level, it will indicate that the bulls continue to view dips as a buying opportunity. That raises the possibility of a rally to $1.77.
On the contrary, if the 20-EMA gives way, the pair could slide towards the 50-SMA. This is an important level for the bulls to defend because a break below it can sink the pair to $1.39.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
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