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Market Watch: Top 3 Cryptocurrencies to Watch Out For This Week

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Market Watch: Top 3 Cryptocurrencies to Watch Out For This Week

This week’s market watch sees Bitcoin (BTC) continue to trade at around $55,000 as its sharp surge has increased its market dominance from 40.70% on September 12 to around 45% today. This shows that the strong recovery in cryptocurrencies is largely being led by Bitcoin.

This sharp rise in Bitcoin has pushed the indicators of fear and greed into the greed zone. While this indicator suggests that the market may rise rapidly in a short period, it does not necessarily mean that a short-term top has been confirmed.

Can the bulls continue the uptrend and push the price closer to Bitcoin’s all-time high? Let’s look at the chart of the top three cryptocurrencies that are likely to stay strong in the short term.

Market Watch: BTC/USDT

Bitcoin rose above the resistance level above the sti of $52,920 on October 6, and the bulls have since kept the price above the breakthrough level. This is a positive sign as it suggests that buyers can hold onto their positions and expect higher levels in the short term.

The moving average has made a bullish crossover and the Relative Strength Index (RSI) is near the overbought zone, suggesting that the path of least resistance is up.

BTC/USDT Daily Chart. Source: TradingView

If buyers push the price above $56,100, the uptrend could resume and the BTC/USDT pair could rebound to $60,000. Above that level, it is possible to retest the all-time high of $64,854.

Contrary to this assumption, if the bears pull the price below $52,920, the pair may fall to the 20-day exponential moving average ($49,504). This is an important support for the bulls to defend as a break below it could indicate a change in the short-term sentiment.

The currency pair can then drop to the 50-day simple moving average ($47,578) and approach $40,000.

BTC/USDT 4-Hour Chart. Source: TradingView

The bulls are facing a sell-off in the $55,750- $56,100 range, but a positive sign is that buyers will not allow the price to drop below the 20-EMA. This suggests that the bulls are likely to break out of the upper zone.

In this case, the currency pair can continue its uptrend. The first sign of weakness will be a breakout and close below the 20 EMA. The RSI is forming a negative divergence, suggesting that momentum may be wearing off.

Breaking and closing below the 20-EMA can pull the price towards the 50-SMA. A break in this support level can initiate a deeper correction.

DOT/USDT

Polkadot (DOT) has been gradually moving towards the upper resistance level of $38.77. The RSI has broken the downtrend line and the 20-day moving average of $32.15 has started rising, suggesting buyers are at an advantage.

If the bulls push the price above $38.77, the head and shoulders pattern will fail. The failure of the bearish setup is a bullish signal as it can trap aggressive shorts and then try to cover their positions, resulting in a short squeeze.

The DOT/USDT currency pair can then move towards $49.78. Or if the price falls from the current level or above the resistance and falls below the moving average, the currency pair may drop to $28.60.

DOT/USDT 4-Hour Chart. Source: TradingView

The rebound in this support could hold the pair in range for a few days. The bears must pull the course under the neckline to show their advantage.

Both moving averages are sloping up and the RSI is in positive territory, suggesting buyers are in control. The pair could drop to the 20-EMA which could become strong support. If the price recovers from this support level, the bulls will attempt to push the price down to $38.77.

This level can act as a Sti resistance again, but unless the bulls give up too much ground, the likelihood of breaking this level increases.

Conversely, if the bears pull the price below the 20-EMA, the currency pair can fall to the 50-SMA. Breaking and closing below this level of support can drop the price of DOT to $31 and then $29.

Market Watch: LINK/USDT

This week’s market watch saw Chainlink (LINK) broke the downtrend line on October 1st, but the bulls did not take advantage of this move. For the past few days, LINK has been in a tight range between $25.20 and $26.19.

Both the moving averages are in place and the RSI is trading above the midpoint, suggesting that supply and demand are in equilibrium. If the price breaks and closes above $28.19, that balance will benefit buyers.

The LINK/USDT currency pair could then rebound to $32.11 and then challenge the $35.33 resistance level above the sti. Or a breakout and close below $25.20 could indicate an oversupply. Then the pair could fall into the $22 to $20.82 support zone.

LINK/USDT 4-Hour Chart. Source: TradingView

The price pulled back from above the resistance and the bears pulled the price below the moving average. If sellers hold the lower levels, the currency pair may drop to the support level of $25.20. A break below that level could indicate the bears are back in power.

Conversely, if the price recovers from current levels and rises above the moving average, it indicates that traders are buying the dips. The bulls will have to push the price up to and hold above $28.19 to show they are back in the driver’s seat. After that, the currency pair can rebound to $32.11.

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