After weeks of market uncertainty, are we finally seeing a shift in the crypto winds? Bitcoin (BTC) is showing early signs of a potential bullish reversal, sparking hope across the digital asset landscape. For three consecutive weeks, Bitcoin’s weekly chart displayed Doji candlestick patterns, signaling indecision. But now, it seems the bulls might be gaining the upper hand, aiming for a positive weekly close. Could this be the signal we’ve been waiting for?
While this recovery is in its initial phase, all eyes are on the upcoming Federal Open Market Committee (FOMC) meeting on September 20th. Market expectations lean towards the Federal Reserve maintaining current interest rates. However, as Fed Chair Jerome Powell addresses the press post-decision, volatility could surge. Will there be surprises that shake up the crypto market?
Bitcoin’s bounce back from the robust support level near $24,800 has injected fresh enthusiasm into the altcoin market, creating exciting trading prospects. But here’s the key: for this altcoin momentum to persist, Bitcoin needs to hold firm above $26,500.
So, will Bitcoin’s relief rally gain steam and trigger a broader altcoin surge? Let’s dive into the charts of five leading cryptocurrencies that are currently exhibiting promising near-term potential.
Bitcoin (BTC) Price Analysis: Is $28,000 Back in Sight?
Bitcoin’s climb above the 20-day Exponential Moving Average (EMA) at $26,303 on September 14th is a significant indicator. It suggests that the intense selling pressure we’ve seen might be waning. Since this breakthrough, bulls have successfully defended against bear attempts to push the price back below the 20-day EMA, showcasing renewed buying interest.
Now, buyers are aiming to capitalize on this momentum and propel the BTC/USDT pair towards the 50-day Simple Moving Average (SMA) at $27,295. This level might present a minor obstacle, but if overcome, the next target becomes $28,143. Expect the bears to mount a strong defense at this higher level.
However, bears aren’t out of the game yet. To regain control, they need to drive the price decisively below the 20-day EMA. This could potentially trap aggressive bulls and pave the way for a retest of the critical support zone at $24,800.
Looking at the 4-hour chart, the price consistently trading above the 20-EMA reinforces the bullish narrative. It indicates buyers are actively buying on price dips, signaling confidence in the ongoing recovery. If bulls can conquer the $26,900 hurdle, we could see a push towards $27,600 and ultimately $28,143.
Conversely, for bears to stage a comeback, they must sink and maintain the price below the 20-EMA on the 4-hour chart. Such a move would clear the path for a deeper correction towards the 50-SMA and then potentially to the robust support zone between $25,600 and $25,300.
Maker (MKR) Price Analysis: Targeting $1,750 or Rangebound?
Maker (MKR) is showing strong bullish intent! On September 15th, buyers successfully pushed MKR’s price above the 50-day SMA ($1,162), signaling a clear attempt by the bulls to seize control of the market momentum.
The MKR/USDT pair is now setting its sights on the $1,370 level. This is anticipated to be a zone of intense conflict between buyers and sellers. The bulls’ ability to defend this level will be crucial. If they can hold their ground, the probability of a breakout above $1,370 significantly increases. Should this happen, MKR could gain substantial momentum, potentially surging towards $1,759.
On the downside, the 20-day EMA ($1,162) is the critical support level to monitor. A break below this level would suggest a potential shift back into a rangebound scenario, with MKR fluctuating between $980 and $1,370 for a period.
The 4-hour chart confirms bullish dominance in the short term. However, the Relative Strength Index (RSI) approaching overbought territory suggests we might see a minor pullback or consolidation soon. Again, the 20-EMA is the key level to watch. A break and close below it could signal a deeper correction towards the 50-SMA.
Conversely, if the price bounces off the 20-EMA on the 4-hour chart, it would be a strong signal that bulls are actively buying on dips. This scenario could trigger a fresh rally towards the overhead resistance at $1,370.
Aave (AAVE) Price Analysis: Will Bulls Conquer $70 Resistance?
Aave (AAVE) made a decisive move above its moving averages on September 16th, indicating a strong bullish push. However, the long wick on that day’s candlestick suggests selling pressure emerged at higher price points.
The bulls have shown resilience by preventing a bear comeback and are now attempting to maintain the price above the 50-day SMA ($59). If they succeed in this, the AAVE/USDT pair is poised for a potential acceleration towards $70 and then $76.
In the near term, the 20-day EMA ($56) acts as crucial support. If the price falls below this level, it would signal renewed bear activity at higher prices, potentially dragging AAVE down to the strong support around $48.
The 4-hour chart reveals that buyers recently stepped in to buy the dip towards the 20-EMA, confirming a shift towards positive sentiment. Buyers will now aim to push the price above the $63 resistance. A successful breakout could propel AAVE towards $70.
Alternatively, if the price reverses and breaks below the 20-EMA on the 4-hour chart, it would indicate weakening demand at higher levels. This could lead to a slide towards the 50-SMA, which might attract buyers again.
Related: How low can the Bitcoin price go?
THORChain (RUNE) Price Analysis: $2.00 – The Decisive Battleground
THORChain (RUNE) has demonstrated a notable recovery in recent days, suggesting buyers are attempting to stage a comeback after a period of price decline.
This upward movement is approaching a significant resistance level at $2.00, which is likely to act as a major hurdle. A sharp rejection from $2.00 would indicate sellers are aggressively defending this level and could trigger a pullback towards the 20-day EMA ($1.62).
However, if RUNE/USDT manages to consolidate near the current level without significant retracement, it would suggest bulls are holding their positions, anticipating further upside. A successful break above $2.00 could initiate a new uptrend towards $2.30 and potentially $2.80.
The 4-hour chart reinforces the $2.00 level as strong resistance. A pullback to the 20-EMA is possible, which is expected to act as robust support. A strong bounce from this level would signal another attempt by bulls to overcome the $2.00 obstacle, potentially leading to a surge towards $2.30.
Conversely, the first sign of weakness would be a break and close below the 20-EMA on the 4-hour chart. This could prompt short-term traders to secure profits, potentially leading to a decline towards the 50-SMA.
Render (RNDR) Price Analysis: Bullish Crossover on the Horizon?
Render (RNDR) broke out above the 50-day SMA ($1.58) and closed above it on September 15th, indicating a potential decrease in selling pressure and a shift in market dynamics.
The moving averages are approaching a bullish crossover, and the RSI is in positive territory, giving bulls a slight advantage. If the price rebounds from the 20-day EMA ($1.50), it would confirm a change in sentiment from selling on rallies to buying on dips. This could initiate a stronger recovery towards $1.83 and then $2.20.
However, this bullish outlook could be invalidated if the price continues downwards and breaks below the moving averages. In such a scenario, RNDR/USDT could decline towards $1.38 and potentially $1.29.
The 4-hour chart shows upward-sloping moving averages and a positive RSI, further supporting the bullish momentum. The 20-EMA is the immediate support level to watch. A bounce from this level would signal continued buying interest on dips, increasing the likelihood of a rally towards $1.77.
On the other hand, if the 20-EMA fails to hold, the pair could slide to the 50-SMA. This level is critical for bulls to defend, as a break below it might trigger a deeper correction towards $1.39.
In Conclusion: Cautious Optimism in the Crypto Market
Bitcoin’s recent price action is offering a glimmer of hope to crypto enthusiasts. The potential for a bullish reversal is there, but the market remains sensitive to macroeconomic factors, especially the upcoming FOMC meeting. While Bitcoin shows promise, select altcoins like MKR, AAVE, RUNE, and RNDR are also presenting interesting trading opportunities based on their individual chart analysis.
As always, remember that the cryptocurrency market is highly volatile. This analysis is for informational purposes only and not financial advice. Always conduct your own thorough research and consider your risk tolerance before making any investment decisions. Keep a close watch on Bitcoin’s price movements, as its direction will likely dictate the broader market trend in the near term. Stay informed, trade wisely, and navigate the crypto markets with caution and optimism!
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.