Bitcoin (BTC) is showing signs of a positive recovery after forming successive Doji candlestick patterns on the weekly chart for the past three weeks. This indicates that the uncertainty between the bulls and the bears is resolving to the upside.
The upcoming Federal Open Market Committee meeting on Sep. 20 could have an impact on Bitcoin’s volatility. While most market participants expect the Federal Reserve to maintain interest rates, surprises could arise during Fed Chair Jerome Powell’s press conference following the rate decision.
Bitcoin’s recovery from the strong support near $24,800 has sparked interest in select altcoins, which are presenting trading opportunities. However, for these altcoins to continue their upward trajectory, Bitcoin needs to stay above $26,500.
Now let’s take a closer look at the charts of the top 5 cryptocurrencies that are showing promise in the near term.
Bitcoin’s price has risen above the 20-day exponential moving average ($26,303) on Sep. 14, indicating a reduction in selling pressure. The bulls have managed to prevent the bears from pulling the price back below the 20-day EMA. Buyers will now try to push the BTC/USDT pair to the 50-day simple moving average ($27,295). If they succeed, the pair is likely to reach $28,143. However, the bears are expected to defend this level.
On the 4-hour chart, the price has been trading above the 20-EMA, indicating that the bulls are buying on dips. If buyers manage to clear the hurdle at $26,900, the pair may climb to $27,600 and eventually to $28,143. On the other hand, if the bears sink and sustain the price below the 20-EMA, it may lead to a retest of the pivotal support at $24,800.
Moving on to Maker (MKR), buyers have propelled the price above the 50-day SMA ($1,162) on Sept. 15, indicating that they are attempting to take charge. The MKR/USDT pair is on its way to $1,370, where a tough battle between the bulls and bears is likely to unfold. If the bulls manage to break above this level, the pair could gain momentum and move towards $1,759. On the downside, the 20-day EMA ($1,162) is a crucial level to watch. A break below this level could result in the pair swinging between the $980 and $1,370 range.
Aave (AAVE) has surged above the moving averages on Sept. 16, indicating a move by the bulls. However, there was selling at higher levels as shown by the long wick on the day’s candlestick. The AAVE/USDT pair is attempting to sustain its price above the 50-day SMA ($59). If successful, it could accelerate towards $70 and later $76. The important support to watch in the near term is the 20-day EMA ($56). A break below this level could suggest bearish activity and lead to a drop to the solid support at $48.
THORChain (RUNE) has shown signs of a recovery in the past few days, indicating an attempt by buyers to make a comeback. The up-move is nearing the solid resistance at $2, which is expected to act as a major roadblock. If the price turns down sharply from this level, it will indicate that the bulls are exiting and could lead to a drop to the 20-day EMA ($1.62). On the other hand, if the price holds above the current level, it suggests that the bulls are holding on and anticipate a further rally. If $2 is taken out, the pair could start a new uptrend to $2.30 and subsequently to $2.80.
Finally, Render (RNDR) broke out and closed above the 50-day SMA ($1.58) on Sept. 15, suggesting a reduction in selling pressure. The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, giving the bulls a slight edge. If the price turns up from the 20-day EMA ($1.50), it could signal a change in sentiment and start a stronger recovery to $1.83 and then $2.20. However, if the price continues lower and breaks below the moving averages, it could lead to a drop to $1.38 and later $1.29.
Please note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.