Bitcoin’s recent consolidation in a tight trading range may lead to potential breakout moves in alternative cryptocurrencies like LINK, MKR, ARB, and THETA.
Despite the S&P 500 experiencing a four-day decline, Bitcoin has remained within a narrow trading range for the past three days. This resilience is a positive sign, indicating that cryptocurrency traders are not hastily exiting their positions.
A noteworthy trend is the gradual shift of Bitcoin’s supply into stronger hands. Glassnode data reveals that short-term holders (STHs) – those who have held their Bitcoin for 155 days or less – now hold the smallest share of Bitcoin supply in over a decade.
In the short term, uncertainty surrounding Bitcoin’s next price direction might be responsible for the subdued price action in various major altcoins. However, several altcoins are showing signs of potential recovery.
Bitcoin Price Analysis Bitcoin has managed to maintain its price above the 20-day exponential moving average (EMA) at $26,523, but it hasn’t shown significant upward momentum. This suggests a lack of demand at higher price levels.
The 20-day EMA and the relative strength index (RSI) near the midpoint indicate a balance between buyers and sellers. A drop below the 20-day EMA could favor the bears, potentially leading to a decline to strong support at $24,800.
Conversely, a rise above the 50-day simple moving average at $26,948 would signal a resurgence of buyer interest, with potential targets at $27,400 and $28,143.
On the 4-hour chart, Bitcoin has traded below the moving averages, but bears have failed to initiate a significant downward move, indicating reduced selling pressure. Bulls may attempt to push the price above the moving averages, targeting $27,400 and $28,143.
To regain control, bears would need to sustain Bitcoin’s price below $26,200, potentially leading to support tests at $25,750 and $24,800.
Chainlink (LINK) Price Analysis Chainlink experienced a breakout above the downtrend line on September 22, signaling a potential trend reversal in the near term.
Bullish signs include moving average crossovers and the RSI in positive territory, indicating strength among buyers. Dips to the 20-day EMA at $6.55 are likely to be bought, suggesting a change from selling on rallies to buying on corrections.
Bulls will target $8 and $8.50 as potential resistance levels, while a drop below the 20-day EMA would require bears to sustain pressure to push LINK’s price below $6.60.
Maker (MKR) Price Analysis Maker faced resistance at $1,370 on September 21, indicating bearish defense at that level.
The 20-day EMA at $1,226 serves as crucial support. A bounce from this level would suggest ongoing buyer interest, potentially pushing MKR towards $1,759. Conversely, a drop below the 20-day EMA could keep MKR ranging between $980 and $1,370.
On the 4-hour chart, moving averages have flattened, and the RSI is near the midpoint, indicating a balance between supply and demand. Breaking above $1,306 may pave the way for further gains, while a drop below $1,264 could signify increased selling pressure.
Arbitrum (ARB) Price Analysis Arbitrum remains in a downtrend, with bears selling on rallies to the 20-day EMA at $0.85. However, bulls have managed to hold their positions, with the RSI suggesting a gradual shift in momentum.
A move above the 20-day EMA could trigger a sustained recovery, targeting $0.95 and $1.04. On the downside, $0.80 and $0.78 are key support levels, with a drop below $0.74 indicating a continuation of the downtrend.
On the 4-hour chart, bears are selling rallies to the downtrend line, but they have not pushed ARB below $0.81, suggesting potential for a higher low. Breaking above the downtrend line could lead to a bullish move towards $1, while a drop below $0.81 may drive ARB lower to $0.74.
Theta Network (THETA) Price Analysis Theta Network broke above the 20-day EMA at $0.61 on September 23, indicating potential for a comeback.
Although bears pushed the price below the 50-day SMA at $0.64, bulls are likely to defend the 20-day EMA. A move above the 50-day SMA could pave the way for a retest of $0.70. A drop below the 20-day EMA could lead to a retest of $0.57.
On the 4-hour chart, bears have defended the $0.65 resistance, while buyers aim to maintain bullish momentum above $0.65, targeting $0.70. A drop below the 20-day EMA may signal a shift in sentiment and open the door for a potential retest of $0.57.
These analyses provide insights into the potential price movements of Bitcoin and selected altcoins, highlighting key support and resistance levels to watch for traders and investors.