5 altcoins that could turn bullish if Bitcoin price stabilizes

As a result of worsening macroeconomic conditions, major stock market indices in the United States continued to decline last week. This raises concerns about a global recession. The Dow Jones Industrial Average was at its lowest level since 2022, while major indices closed at their fifth weekly close over the past six weeks.

Although Bitcoin (BTC), has declined only marginally this week it could close at its lowest level since 2020. A new weekly close of Bitcoin (BTC) is a negative sign. However, sellers must maintain the lower levels to avoid it becoming a bear trap. As the bears and bulls fight for supremacy, the price action over the next few days will likely be volatile.

Daily view of crypto market data. Source:Coin360

Many investors miss buying opportunities during sharp corrections due to their desire to find the bottom. Instead of focusing on projects that they love, traders should concentrate on the projects and accumulate coins in phases over a period of weeks or months. It is best to concentrate on the cryptocurrencies that are strong and not all coins will bottom at once.

Although Bitcoin is at its lowest point in the past year, some altcoins are still holding strong. Let’s take a look at five cryptocurrencies that are likely to be interesting in the short term.

BTC/USDT

Although the Bitcoin bulls have been able to defend the $18,626-$17,622 support zone over the past few trading days, they are still facing strong selling at the exponential moving average (20,720). This indicates that bears are still selling on minor rallies.

Daily chart of BTC/USDT Source: TradingView

Although the moving averages are downsloping, the positive divergence in the relative strength index suggests that bears have the upper hand. However, the bearish momentum may be weakening.

The first sign that bears are losing their grip is a break or close above the 20 day EMA. The BTC/USDT exchange rate could rise to the 50 day simple moving average (21,043) or later to $22,799. This barrier will need to be overcome by buyers to allow for a rally towards $25,211.

If bears drop below the June low price of $17.622, selling could increase and the pair could resume its downtrend. The price of the pair could plummet to $14,000.

BTC/USDT 4-hour chart. TradingView

While the bulls are buying the drop below $18,626 the bears continue to block the recovery at the 50 SMA. The price has dropped between these two levels, but it is unlikely that this tight trading will continue.

If the price drops below $18,626, bears could pull the pair back to $17,622. This level could see a fierce battle between bulls and bears. The upside is that if bulls push the price above 50-SMA, it could increase to $20,400

TOM/USDT

Cosmos (ATOM), which has traded above $13.46 as the breakout level for several days, indicates that sentiment is positive and traders are buying dips.

Daily chart ATOM/USDT Source: TradingView

The 20-day EMA ($14.22), has flattened and the RSI is close to the midpoint. This indicates a balance between supply/demand. The buyers could gain a short-term advantage if the price falls below $15.26. The ATOM/USDT exchange rate could rise to $17.20.

Although this level could act as resistance, buyers can push the price higher than it to increase momentum and propel the pair to $20.34 and then to $25.

Contrary to the assumption, the advantage for the bears could be tilted in their favor if the price falls below the 50-day SMA ($12.90). The pair could fall to $10.

ATOM/USDT 4-hour chart. Source: TradingView

For some time, the pair has remained between $13.45 & $17. The support level at $13.45 was vigorously defended by buyers who are trying to push the price higher than the 50-SMA. The likelihood of a rally up to $16 or $17 will increase if they do this.

If the price falls below the 20-EMA and the current level, it will indicate that bears are continuing to sell rallies. This could push the price towards $13.45. To clear the way for a possible fall to $11.50, the sellers will need to lower the pair to $13.

LGO/USDT

On Sept. 23, the uncertainty surrounding the range-bound action of $0.27 to $0.38 was resolved to the upside, indicating the beginning of a new up-move. Algorand (ALGO), could still be on the first leg of its uptrend if that happens.

Daily chart for ALGO/USDT TradingView

0.38 is the key level to watch for on the downside. This level could be turned into support by bulls, which could increase the chances of a new uptrend. The ALGO/USDT currency pair could rally to $0.45, and then to $0.50.

If the price falls below $0.38, this bullish view may be invalidated. This could cause the price to fall below the 20-day EMA ($0.33). If the price reboundes from this level, bulls will attempt to clear the overhead resistance.

ALGO/USDT 4-hour chart. Source: TradingView

Although the price rose above $0.38 overhead resistance, the bulls were unable to sustain this momentum. The bears are not giving up yet and continue to sell at rallies close to $0.41.

The pair could fall to $0.36 if bears push the price below the 20EMA. This is an important level that bulls must defend as a break below could lead to a drop to the 50 SMA.

To signal the resumption or up-move, bulls must push the price higher than $0.41.

Related: What is crypto scalping? How does scalp trading work in practice?

CHZ/USDT

Chiliz (CHZ), which had fallen sharply in June, saw bulls clear the overhead resistance of $0.26 on September 22, signaling a resumption the up-move. It is worth paying attention to a coin that moves against market sentiment.

Daily chart CHZ/USDT Source: TradingView

For the past three days, the bears tried to lower the price below $0.26 but the bulls held firm. Bulls see the dips as an opportunity to buy. Buyers are in control, as evidenced by the positive territory’s RSI and rising moving averages.

The CHZ/USDT pair may rally to $0.33 if the price rises and breaks above $0.28.

If the price drops below $0.26 and the market falls, traders could be looking for exit strategies. The price could drop first to the 20-day EMA ($0.23), and then to the 50 day SMA ($0.21).

CHZ/USDT 4-hour chart. Source: TradingView

Both moving averages are increasing, which indicates buyers have an advantage. However, the negative divergence of the RSI suggests that bullish momentum is waning. The pair could fall to the 50-SMA if bears lower the price below $0.26. This is an important level for bulls to defend as if it falls, the pair may drop to $0.22.

The up-move may resume if the price recovers from $0.26 and goes above $0.28. The price could rise to $0.32.

QNT/USDT

Quant (QNT), which is trading higher than both moving averages, is showing signs of strength. Despite negative sentiment in the cryptocurrency sector, Quant (QNT) has managed to trade higher despite this.

Daily chart QNT/USDT Source: TradingView

For many days, the bears were trying to defend the $112 level. However, the bulls broke through the resistance Sept. 24, pushing the price towards the downtrend line. The candlestick’s long wick shows that bears are trying stop the upward movement at this level.

One positive note is that bulls bought the dip down to $112 on September 25, which suggests that buyers may be trying to turn this level into support. The QNT/USDT currency pair could rise again to the downtrend line. The pair could rise to $133 if this hurdle is cleared. It could also soar to $154.

Alternativly, if the price falls below $112, then the 20-day EMA ($106) could be the next stop. A break below this support might bring the pair down to $95.

QNT/USDT 4-hour chart. Source: TradingView

After breaking above $112, the pair gained momentum and reached near to the downtrend line. The RSI moved into overbought territory which may have tempted traders to book profits.

The price recovered from $112, which indicates that traders are still buying dips and the sentiment is positive. The pair could reach $121, and then the downtrend line. A break below $112 could send the pair to the 50 SMA and then to $95.

You should research all aspects of trading and investment before making any decision.

https://cointelegraph.com/news/5-altcoins-that-could-turn-bullish-if-bitcoin-price-stabilizes

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Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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