Bitcoin (Bitcoin) Is working hard to stay above $50,500, but this has not stopped altcoins from following Ethereum (Ethereum) The footsteps after the top-ranked altcoin reached $4,000 on September 3. This pushed Ethereum’s market dominance to more than 20%, while Bitcoin’s dominance has shrunk to 41.1%.
However, Bitcoin’s hesitation in the past few days has been Did not change the outlook Mike McGlone, senior commodity strategist at Bloomberg, has a goal of $100,000 in Bitcoin and $5,000 in Ethereum.
In addition to the top two cryptocurrencies, the non-fungible token (NFT) industry has been attracting investors’ attention since July. Cointelegraph contributor Jordan Finneseth recently stated that the recent decline in transaction volume and other reasons may indicate Capital rotation From NFT to decentralized financial sector.
Let’s study the charts of the top 5 cryptocurrencies that may outperform the market in the short term.
Bitcoin broke through the resistance level of $50,500 to reach $51,000 on September 3, but the long wick on the candlestick that day indicated a lack of higher-level buying. This is followed by the Doji candlestick pattern on September 4, which shows the indecision between bulls and bears.
The negative divergence of the relative strength index (RSI) indicates that the bullish momentum may be weakening, but the upward sloping moving average indicates that the path of least resistance is to the upside.
If buyers push the price above 51,000 USD, the BTC/USDT pair may resume its upward trend. The first stop may be $55,000, but if the resistance is broken, the rise may reach $60,000.
Conversely, if the price drops from USD 50,500 to the resistance zone of USD 51,000, the currency pair may fall to the 20-day exponential moving average (USD 47,998).
This is an important support for the bulls, because if it breaks, the currency pair may remain within a range of 46,200 to 50,500 US dollars within a few days. A break and close below US$46,200 may cause the currency pair to fall to the 50-day simple moving average (US$43,291).
The price has been trading between the 20-EMA and the upper zone. The tightening of the range is likely to lead to a strong breakout soon. If buyers push the price above $51,000, the bullish momentum may pick up, indicating a resumption of the uptrend.
Or, if the price falls below the moving average, it indicates that the bears are actively defending the upper resistance zone. This may reduce the price to $46,200. A rebound from this support level may keep the currency pair in range for a period of time, but a break below this support level will indicate that the bulls may lose control.
The bulls are trying to promote and sustain Litecoin (LTC) Is higher than the upper resistance at 225.30 USD. If they succeed, it will complete a round bottom pattern and may start a new uptrend.
The long wick on the candlestick on September 4 showed selling near the upper resistance, but the positive sign is that the bulls did not give in too much. They tried again to overcome the elevated obstacles.
If they can maintain the price above 225.30 USD, then the LTC/USDT pair may start to rise to 300 USD and then to the model target of 347.30 USD. The rising 20-day moving average ($184) and the RSI in the overbought zone indicate that the path of least resistance is to the upside.
If prices fall from current levels and break below the 20-day moving average, this bullish view will be invalidated.
The 4-hour chart shows that the bears are trying to stop the rise at the upper resistance level of $225.30, but the bulls have not given up too much. This indicates that buyers will continue to accumulate during any small declines.
Both moving averages are sloping upward, and the RSI is in the overbought zone, indicating that the bulls are in a dominant position. Breaking and closing above 225.30 US dollars may open the door for a rebound to 250.40 US dollars. On the contrary, a breakout and closing below the 20-EMA will be the first sign of weakness.
Foreign currency/U.S. dollar
Filecoin’s FIL token broke the upper resistance level of $98 today. This completes a round bottom pattern, indicating the beginning of a new uptrend. The pattern target for the bottom pattern is $156.
The 20-day moving average ($79) has rebounded, and the RSI has soared above 81, indicating that the trend may change. Usually, a breakout from the main pattern will retest the breakout level. In this case, the price may drop to $98.
If the bulls turn the $98 level into support, the FIL/USDT currency pair may resume its upward trend. Conversely, if the bears pull the price lower and maintain it below $98, it indicates that the recent breakout is a bull trap. Then the currency pair may fall to the 20-day moving average.
If the price rebounds from this support level, the bulls may try again to push the price above the upper resistance and resume the upward trend. The bears must push the price below the 20-day moving average to gain the upper hand.
The 4-hour chart shows strong momentum in favor of buyers. This has pushed the RSI into the overbought zone, indicating that there may be a slight correction or consolidation in the short term.
If the bulls do not give up too much, this will indicate that the trader has no predetermined profit because they expect another leg higher. This will increase the likelihood of resuming the upward trend.
However, the bears may have other plans. They will try to bring the price back below $98 and trap the aggressive bulls.
FTT / USDT
The FTX token (FTT) broke the previous all-time high of $63.13 on September 1st, and then hit a new all-time high of $70.72 on September 2nd. The bulls failed to maintain the price above the breakout level of $63.13.
This shows that the bears have not given up yet and are trying to stop the rise. The negative divergence of RSI indicates that the bullish momentum may be slowing down.
If the shorts pull the price below 57.93 USD, the FTT/USDT currency pair may fall to the 20-day moving average (53 USD). A strong rebound from this level will indicate that the bulls are accumulating on dips. Then the buyer will try again to push the price above the resistance zone of $63.13 to $70.72. If they manage to do this, the currency pair may rise to $84.
If the price falls below the 20-day moving average, this positive view will be invalidated. Such a move would indicate that the recent breakthrough of $63.13 is a bull trap.
The 4-hour chart shows the formation of a descending triangle pattern that will complete on the breakout and close below $59. The pattern target for this bearish setting is $47.50. The flat 20-EMA and the RSI just above the midpoint do not give bulls or bears a clear advantage.
If the buyer pushes and maintains the price above the downtrend line, the bearish pattern will be invalid. The price may then rise to 65 USD and then 70.72 USD. Breaking and closing above this level may start the next segment of the uptrend.
Internet of Things (Since when) It rose sharply from US$0.96 on September 1 to US$2.08 on September 4. This increase pushed the RSI above 82, indicating that the gains have been excessive in the short term.
The MIOTA/USDT currency pair is currently profitable and may fall to the first support level of the 38.2% Fibonacci retracement level at $1.64. A strong rebound from this level will indicate that traders are buying on small dips.
Then the bulls will try again to push the price above $2.08. If they succeed, the currency pair may gain momentum and rebound to $2.40, then $2.67.
Or, if the bears pull the price lower and stay below $1.64, the next stop may be in the area between the 50% retracement of $1.51 and the 61.8% retracement of $1.38. A deeper correction may delay the start of the next segment of the uptrend.
The long wick above the $2 psychological barrier on the 4-hour chart indicates that the bears are trying to defend this level. Profitable bookings may pull the price down to the 20-EMA, which may become a strong support.
If the price rebounds strongly from the 20-EMA, it indicates that the market sentiment is still positive and the bulls are accumulating on dips. The buyer will then try to resume the upward trend by pushing the price above $2.08.
A breakout and closing below the 20-EMA will be the first sign of weakness. This may open the door for a further drop to $1.50.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, and you should conduct your own research when making a decision.