Bitcoin (BTC) is struggling to maintain above $50,500 however that has not stopped the altcoins from following in Ether’s (ETH) footsteps after the top-ranked altcoin hit $4,000 on Sept. 3. This has pushed Ether’s market dominance above 20% whereas Bitcoin’s dominance has shrunk to 41.1%.
Nevertheless, Bitcoin’s hesitation previously few days has not altered the outlook of Bloomberg senior commodity strategist Mike McGlone who has retained a $100,000 goal on Bitcoin and $5,000 on Ether.
Aside from the highest two cryptocurrencies, the nonfungible token (NFT) sector had been attracting investor’s consideration since July. Cointelegraph contributor Jordan Finneseth not too long ago recommended that the latest drop in transaction volumes and some different causes may very well be signaling a rotation of capital from NFTs to the decentralized finance sector.
Let’s examine the charts of the top-5 cryptocurrencies which will outperform within the brief time period.
Bitcoin broke above the $50,500 resistance on Sep. 3 to hit $51,000 however the lengthy wick on the day’s candlestick suggests an absence of shopping for at greater ranges. That was adopted by a Doji candlestick sample on Sep. 4, indicating indecision among the many bulls and the bears.
The adverse divergence on the relative energy index (RSI) means that the bullish momentum could also be weakening however the upsloping transferring averages point out that the trail of least resistance is to the upside.
If consumers drive the worth above $51,000, the BTC/USDT pair might resume its uptrend. The primary cease may very well be $55,000 but when this resistance is crossed, the up-move might attain $60,000.
Conversely, if the worth turns down from the $50,500 to $51,000 resistance zone, the pair could drop to the 20-day exponential transferring common ($47,998).
This is a vital assist for the bulls as a result of if it cracks, the pair could stay range-bound between $46,200 and $50,500 for just a few days. A break and shut beneath $46,200 might sink the pair to the 50-day easy transferring common ($43,291).
The value has been buying and selling between the 20-EMA and the overhead zone. This tightening of the vary is more likely to end in a powerful breakout quickly. If consumers push the worth above $51,000, the bullish momentum might choose, signaling the resumption of the uptrend.
Alternatively, if the worth slides beneath the transferring averages, it’ll recommend that bears are aggressively defending the overhead resistance zone. That might pull the worth right down to $46,200. A bounce off this assist might maintain the pair range-bound for some extra time however a break beneath it’ll point out that bulls could also be dropping their grip.
The bulls are trying to push and maintain Litecoin (LTC) above the overhead resistance at $225.30. In the event that they succeed, it’ll full a rounding backside sample which will begin a brand new uptrend.
The lengthy wick on the Sep. 4 candlestick confirmed promoting close to the overhead resistance however the optimistic signal is that bulls didn’t cede a lot floor. They’re once more making an attempt to beat the overhead hurdle.
If they’ll maintain the worth above $225.30, the LTC/USDT pair might begin an up-move to $300 and later to the sample goal at $347.30. The rising 20-day EMA ($184) and the RSI within the overbought zone point out the trail of least resistance is to the upside.
This bullish view will invalidate if the worth turns down from the present stage and breaks beneath the 20-day EMA.
The 4-hour chart exhibits the bears tried to stall the up-move on the overhead resistance at $225.30 however the bulls didn’t hand over a lot floor. This implies that consumers proceed to build up on any minor dip.
Each transferring averages are sloping up and the RSI is within the overbought zone, indicating that bulls are in command. A break and shut above $225.30 might open the doorways for a rally to $250.40. Conversely, a break and shut beneath the 20-EMA would be the first signal of weak point.
Filecoin’s FIL token has damaged above the overhead resistance at $98 in the present day. This completes a rounding backside sample, suggesting the beginning of a brand new uptrend. The bottoming formation has a sample goal at $156.
The 20-day EMA ($79) has turned up and the RSI has soared above 81, indicating a attainable development change. Often, the breakout from a significant sample retests the breakout stage. On this case, the worth could drop to $98.
If bulls flip the $98 stage into assist, the FIL/USDT pair might resume its uptrend. Quite the opposite, if bears pull and maintain the worth beneath $98, it’ll recommend that the latest breakout was a bull entice. The pair could then drop to the 20-day EMA.
If the worth rebounds off this assist, the bulls could as soon as once more attempt to propel the worth above the overhead resistance and resume the uptrend. The bears should sink the worth beneath the 20-day EMA to realize the higher hand.
The 4-hour chart exhibits a powerful momentum in favor of consumers. That has pushed the RSI deep into the overbought territory, indicating the potential for a minor correction or consolidation within the brief time period.
If bulls don’t hand over a lot floor, it’ll recommend that merchants should not reserving income as they anticipate one other leg greater. That can improve the chance of the resumption of the uptrend.
Nevertheless, the bears are more likely to produce other plans. They are going to attempt to pull the worth again beneath $98 and entice the aggressive bulls.
FTX Token (FTT) broke above the earlier all-time excessive at $63.13 on Sep. 1 and adopted it up with a brand new all-time excessive at $70.72 on Sep. 2. A brand new all-time excessive is an indication of energy however the bulls haven’t been in a position to maintain the worth above the breakout stage at $63.13.
This implies that bears haven’t but given up and are trying to stall the up-move. The adverse divergence on the RSI means that the bullish momentum could also be slowing down.
If bears pull the worth beneath $57.93, the FTT/USDT pair might drop to the 20-day EMA ($53). A robust bounce off this stage will recommend that bulls are accumulating on dips. The consumers will then once more try and push the worth above the $63.13 to $70.72 resistance zone. In the event that they handle to do this, the pair might rally to $84.
This optimistic view will invalidate if the worth breaks beneath the 20-day EMA. Such a transfer will recommend that the latest breakout above $63.13 was a bull entice.
The 4-hour chart exhibits the formation of a descending triangle sample, which is able to full on a break and shut beneath $59. This bearish setup has a sample goal at $47.50. The flat 20-EMA and the RSI simply above the midpoint don’t give a transparent benefit both to the bulls or the bears.
If consumers drive and maintain the worth above the downtrend line, it’ll invalidate the bearish sample. The value could then rally to $65 and later to $70.72. A breakout and shut above this stage might begin the following leg of the uptrend.
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IOTA (MIOTA) rallied sharply from $0.96 on Sep. 1 to $2.08 on Sep. 4. This up-move pushed the RSI above 82, suggesting that the rally was overextended within the brief time period.
The MIOTA/USDT pair is at present witnessing profit-booking and it might drop to the primary assist on the 38.2% Fibonacci retracement stage at $1.64. A robust rebound off this stage will recommend that merchants are shopping for on minor dips.
The bulls will then make another try and push the worth above $2.08. In the event that they succeed, the pair might choose up momentum and rally towards $2.40 after which $2.67.
Alternatively, if bears pull and maintain the worth beneath $1.64, the following cease may very well be within the zone between the 50% retracement stage at $1.51 and the 61.8% retracement stage at $1.38. A deeper correction might delay the beginning of the following leg of the uptrend.
The lengthy wick on the 4-hour chart above the psychological barrier at $2 exhibits that bears are trying to defend this stage. Revenue-booking could pull the worth right down to the 20-EMA, which is more likely to act as a powerful assist.
If the worth rebounds off the 20-EMA with energy, it’ll recommend that the sentiment stays optimistic and bulls are accumulating on dips. The consumers will then attempt to resume the uptrend by thrusting the worth above $2.08.
A break and shut beneath the 20-EMA would be the first signal of weak point. That will open the doorways for an additional decline to $1.50.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer entails threat, it is best to conduct your personal analysis when making a choice.