Bitcoin (BTC) experienced a decline of about 11% in the third quarter of 2023, following a significant rise of approximately 80% in the first two quarters. However, there is some positive news for Bitcoin bulls as the month of September closed on a positive note, marking the first positive monthly close since 2016. This could potentially indicate a shift in momentum in favor of the buyers.
Looking ahead, October has historically been a bullish month for Bitcoin. According to data from CoinGlass, only two years, 2014 and 2018, have seen negative monthly returns for Bitcoin in October since 2013. While past performance does not guarantee future results, this historical data can provide traders with valuable insights and help them formulate strategies.
The recent strength in Bitcoin has also had a positive impact on altcoins. Some select altcoins are attempting to break above their respective resistance levels, signaling the start of a potential recovery. This bullish momentum may further strengthen if Bitcoin extends its relief rally to $28,000.
However, not all altcoins are expected to experience significant gains. The cryptocurrencies that are showing strength are the ones that are likely to lead the recovery. Let’s take a closer look at the top 5 cryptocurrencies that could potentially outperform in the near term.
Bitcoin’s price analysis indicates a positive trend as it has been trading above the moving averages since September 28. The bulls have managed to hold ground despite minor dips, increasing the chances of a break above $27,500. If this level is surpassed, the next major resistance lies at $28,143. On the other hand, a sharp downturn below the solid support at $26,000 would negate the bullish view in the short term.
Aave (AAVE), Maker (MKR), THORChain (RUNE), and Injective (INJ) are some altcoins that are showing potential for a positive trend. Maker has broken above $1,370, indicating the start of a new uptrend. Aave is attempting to break above a long-term downtrend line, suggesting a potential trend change. THORChain has reached the overhead resistance at $2 multiple times, weakening it each time and potentially setting the stage for an upward rally. Injective has been trading within a large range between $5.40 and $10, providing trading opportunities within this range.
It is important to note that this analysis does not provide investment advice or recommendations. Investing in cryptocurrencies carries risks, and readers should always conduct their own research before making any investment decisions.