Bitcoin (BTC) has gone silent over the weekend. CryptoQuant CEO Ki Young Ju said, in a recent post on X (formerly Twitter), that Bitcoin’s velocity has declined to a three-year low. He said this could either be considered positive, as whales were holding on to their positions, or negative because the transfer to new investors was not happening.
The range-bound action continues to perplex investors with regard to the next possible trending move. In that respect, there was positive commentary from JPMorgan analysts who said that Bitcoin’s downtrend could be ending. They believe that the declining open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange suggests that the long liquidation is over.
As Bitcoin decides its next move, select altcoins are showing signs of strength. These altcoins could turn negative if Bitcoin’s range resolves to the downside, but if Bitcoin turns up or stays in a range, then they may offer a short-term trading opportunity.
Let’s study the charts of the top-five cryptocurrencies that may move up in the near term and identify the levels that need to be crossed for the bulls to take charge.
Bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on Aug. 26, indicating indecision between the bulls and the bears about the next directional move.
The downsloping 20-day exponential moving average ($27,222) and the relative strength index (RSI) in the oversold zone indicate that bears are in command. However, the bulls are unlikely to give up without a fight. They will try to defend the $24,800 level with all their might.
The BTC/USDT pair may start a stronger recovery if buyers thrust the price above the 20-day EMA. That could open the doors for a possible rally to the 50-day simple moving average ($28,888).
If bears want to strengthen their position, they will have to pull the price below $24,800. If they do that, the pair could start a downtrend to $20,000.
The 20-day EMA is flattening out, and the RSI is near the midpoint on the four-hour chart. This suggests a balance between supply and demand. If the price crumbles below $25,700, the pair could fall to $25,166 and then to $24,800.
On the contrary, if the pair sustains above the moving averages, it will signal that the bulls have absorbed the selling. There is a minor resistance at $26,314, but if this crossed, the pair could climb to $26,610 and, later, to $26,833.
Toncoin price analysis
Toncoin (TON) is forming an inverse head and shoulders pattern, which will complete on a break and close above $1.53.
The gradually upsloping 20-day EMA ($1.38) and the RSI in the positive zone indicate that the path of least resistance is to the upside. If buyers drive the price above $1.53, the TON/USDT pair could start a new uptrend toward the pattern target of $1.91.
The bears are likely to have other plans. They will try to guard the $1.53 level and tug the price below the moving averages. If they manage to do that, the pair could decline to $1.25 and, eventually, to $1.15.
The four-hour chart shows that the $1.53 level may prove to be a stiff barrier for the buyers to cross. If the price turns down from this level but rebounds off the 20-day EMA, it will suggest that the bulls are buying on minor dips. That could improve the odds of a break above $1.53. The pair may then rally to $1.70.
Instead, if the price turns down and breaks below the 20-day EMA, it will signal that traders are booking profits near $1.53. The pair may then drop to the 50-day SMA and, subsequently, to $1.33.
Monero price analysis
Monero’s (XMR) sharp rebound off the uptrend line for the second time in the past few days shows that the bulls are fiercely defending the level.
The XMR/USDT pair could reach the 20-day EMA ($148), which is likely to act as a formidable hurdle. If bulls do not give up much ground from this level, the prospects of a rally above the 20-day EMA increase. The pair may then climb to the 50-day SMA ($157), which could attract selling by the bears.
If the price turns down sharply from the 20-day EMA, it will suggest that bears continue to sell on rallies. The pair could then retest the uptrend line. The repeated retest of a support level tends to weaken it. If this level gives in, the pair may collapse to $125 and then to $115.
The bulls pushed the price above the moving averages on the four-hour chart, indicating that the bears may be losing their grip. There is a strong resistance at $150, but if this level is scaled, the pair may reach…
Read More: Bitcoin price stability creates lucrative setups in TON, XMR, MNT and QNT