Bitcoin (BTC) has shown stability over the past few days despite the S&P 500 experiencing a downturn. This is a positive sign as it indicates that cryptocurrency traders are not panicking and selling off their holdings. In fact, data from Glassnode suggests that Bitcoin’s short-term holders (STHs) hold the least amount of Bitcoin supply in over a decade. This suggests that Bitcoin’s supply is gradually shifting to stronger hands.
The uncertainty surrounding Bitcoin’s next move may have contributed to the subdued price action in several large altcoins. However, there are also signs of a recovery in some altcoins, indicating that not all is negative in the market.
Now, let’s take a look at the charts of the top five cryptocurrencies that could lead a bullish rally.
Bitcoin has managed to sustain its price above the 20-day exponential moving average (EMA), but there hasn’t been a strong rebound. This suggests a lack of demand at higher levels. If the price falls below the 20-day EMA, it could descend to the support at $24,800. On the other hand, if the price rises above the 50-day simple moving average (SMA), it could signal a bullish move with a target resistance at $28,143.
Chainlink (LINK) has surged above the downtrend line, indicating a potential trend change. The moving averages have completed a bullish crossover, and the RSI is in positive territory, suggesting that buyers have the upper hand. If the price rebounds off the 20-day EMA, it could extend the up-move to $8 and eventually to $8.50. However, if the price breaks below the 20-day EMA, it could retest the breakout level and potentially decline further.
Maker (MKR) turned down from the overhead resistance at $1,370, indicating bearish pressure. The 20-day EMA is the support to watch, and a rebound from this level would suggest that buyers are still interested. The bulls would then attempt to drive the price above the resistance, with a potential target of $1,759. Conversely, if the price falls below the 20-day EMA, it may remain range-bound between $980 and $1,370 for some time.
Arbitrum (ARB) is in a downtrend, but the bulls are trying to hold on to their positions. If the price rises above the 20-day EMA, it could start a sustained recovery with targets at the 50-day SMA and $1.04. However, if the bears succeed in pushing the price below the support levels at $0.80 and $0.78, the downtrend may resume.
Theta Network (THETA) has shown positive signs, with the price soaring above the 20-day EMA. If the price climbs above the 50-day SMA, it could retest the important resistance level at $0.70. However, if the price falls below the 20-day EMA, it could potentially retest support at $0.57.
It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.
Overall, Bitcoin’s stability and the potential recovery in some altcoins suggest that the market may not be in a panic state. It remains to be seen whether Bitcoin will initiate a bullish rally and act as a catalyst for altcoins, but the charts of these top cryptocurrencies indicate the possibility of positive movement in the near future.