Bitcoin (BTC) traded in a tight range over the past three days, even as the S&P 500 fell over the last four days of the week. This is a positive sign because it shows that cryptocurrency traders are not panicking or rushing.
Bitcoin supply is gradually moving in a stronger direction. Citing Glassnode data, CryptoCon analysts said short-term Bitcoin holders (STH) — investors who hold their coins for 155 days or less — have the lowest Bitcoin holdings in more than a decade.
In the short term, uncertainty about Bitcoin's next direction could keep traders on the sidelines and contribute to weak price action for some major altcoins. However, the situation is not dire: some altcoins are showing signs of recovery in the short term.
Could Bitcoin wake up from its slumber and start growing in the near future? Will this be the catalyst for an altcoin rally? Let's look at the charts of five major cryptocurrencies whose prices could rise.
Bitcoin Price Analysis
Bulls managed to keep Bitcoin price above the 20-day exponential moving average (EMA) of $26,523, but failed to initiate a strong bounce. This indicates a lack of demand at a higher level.
A flat 20-day EMA and relative strength index (RSI) near the midpoint indicate a balanced situation between buyers and sellers. A break below the 20-day EMA will bring profits to sellers. The BTC/USDT pair may then fall to the physical support of $24,800.
Alternatively, if the price breaks out of current levels and breaks above the 50-day simple moving average of $26,948, it would signal that buyers are back in control. The pair may then look to move higher towards resistance at $28,143.
While BTC is trading below its moving average on the 4-hour chart, the bears have failed to initiate a bearish move. This indicates that sales have fallen to a low level. Meanwhile, the bullish trend will try to push the Bitcoin price above the moving average. If they do, the pair could rise to $27,400 and further to $28,143.
If the bears want to take control, they will have to move lower and keep the BTC price below $26,200. This could lower it first to $25,750 and then to the $24,800 support level.
Network pricing analysis
Chainlink (LINK) broke out of a descending trendline on September 22, signaling a potential trend in the near future.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that buyers have an advantage. In the event of a correction, buyers are likely to buy even on a dip to the 20-day EMA of $6.55. A strong rebound from this level would indicate a sentiment shift from bullish selling to bearish buying.
The bulls will then look to extend the move to $8 and possibly $8.50. If sellers want to avoid such a rally, they should move lower and support the LINK/USDT pair below the 20-day EMA.
On the 4-hour chart, both moving averages are trending higher, while the RSI is in positive territory. Bulls took a dip at the 20 EMA, indicating positive sentiment. If the LINK price rises above the 20 EMA, the upper target will be $7.60.
Contrary to this hypothesis, if the Chainlink price continues to decline and falls below the EMA-20, it will indicate that buyers are taking profits. LINK can then retest the breakout level of the lower trendline. To regain control, sellers must push the price below $6.60.
Producer price analysis
Maker (MKR) broke the resistance above $1,370 on September 21, indicating that sellers are trying to maintain this level.
The 20-day EMA at $1,226 is support to watch on the downside. If the price bounces off this level, it means that the lower levels continue to attract buyers. The bulls will then make another attempt to push the MKR price above the upper resistance level. If they succeed, the MKR/USDT pair could reach $1,759.
Conversely, if the bearish price takes below the 20-day EMA, it means that the bullish momentum is weakening. This could keep the pair in the $980-$1,370 range for a few days.
On the 4-hour chart, the moving average has leveled off and the RSI is slightly below the midpoint, indicating a balance between supply and demand. If buyers push the price above $1,306, the MKR price may rise to $1,370.
Conversely, if the price breaks down and breaks below $1,264, this indicates more selling pressure. This could set the stage for a further decline to $1,225. A break below this support could result in short-term gains for sellers.
Arbitrage Price Analysis
Arbitrum (ARB) is in a downtrend. Sellers are selling a rise to the 20-day EMA at $0.85, but a positive sign is that buyers are not giving up. This indicates that buyers are trying to protect their positions in anticipation of an increase.
The RSI has risen above 40, indicating that the momentum is gradually turning positive. If buyers can push the price above the 20-day EMA, it will signal the start of a sustained recovery. The ARB/USDT pair may first touch the 50-day SMA of $0.95 and then rise to $1.04.
Lower support is first at $0.80 and then at $0.78. Sellers should push ARB price below this zone to make room for a retest of support around $0.74. A break below this level would indicate a resumption of the downtrend.
The 4-hour chart shows that sellers are selling gains to the lower trendline. Sellers pushed the price below the moving average, but failed to push ARB below immediate support at $0.81. This indicates that the bulls are trying to make a higher low.
Buyers will again try to push the price above the downtrend line. If successful, Arbitrum's price will likely begin a strong recovery towards the psychological $1 level. Conversely, a break below $0.81 could push the ARB price to $0.78 and further to $0.74.
Theta Network Price Analysis
On September 23, Theta Network (THETA) broke above the 20-day EMA at $0.61, indicating that the bulls have accepted the offer and are trying to recover.
Sellers pushed the price below the 50-day SMA to $0.64, but buyers are expected to defend the 20-day EMA. If the THETA price rises above the current level and breaks the 50-day SMA, there will be an increased chance of retesting the $0.70 level.
This is an important level to watch because if it rises, THETA/USDT could reach $0.76. If the price falls below the 20-day EMA, this positive forecast will be invalidated in the short term. This leaves room for a potential retest at $0.57.
The 4-hour chart shows sellers defending at $0.65. If buyers want to maintain the bullish momentum, they need to push THETA above $0.65. In this case, the pair is likely to start a new rally towards $0.70.
The 20-day EMA is an important support to watch on the downside. If the bears break the price below this support, it will mean that buyers are closing their positions. The pair may then fall to the support level at $0.58.
This article does not contain investment advice or recommendations. Every step of investing and trading involves risk and readers should do their own research when making decisions.
