Traders shift their focus to XRP, UNI, QNT and EGLD while Bitcoin continues to consolidate around the $20,000 level.
It has been difficult for Bitcoin (BTC) and the cryptocurrency markets to start a strong sustained recovery while the United States dollar is near its multi-year high and the U.S. equities markets are near their June lows. This shows that the sentiment remains negative and traders are not interested in taking on risk in their portfolios.
The U.S. equities markets fell sharply on Oct. 7 following the release of September’s nonfarm payroll data, but they did manage marginal gains for the week. The S&P 500 rose 1.5% and the Nasdaq Composite climbed 0.7% last week. Meanwhile, Bitcoin is on track to finish the week with marginal gains of about 2%.
In the past few days, Bitcoin has managed to avoid a collapse even when the U.S. equities markets were being clobbered. This is the first indication that the selling pressure may be reducing and traders may not be willing to part with their holdings at lower levels.
However, for a sustained recovery, Bitcoin will need some support from the return of the risk-on sentiment. Until then, volatile range-bound action is likely to continue, with certain altcoins offering trading opportunities. Let’s examine the charts of five cryptocurrencies that look interesting in the near term.
Bitcoin is struggling to stay above the 50-day simple moving average ($19,961), indicating that the bears have not yet given up. The sellers pulled the price below the 20-day exponential moving average ($19,628) on Oct. 7, but they could not extend the decline to the support at $18,626. This suggests that bulls are buying on dips and are trying to form a higher low in the short term.
The flattish 20-day EMA and the relative strength index (RSI) just below the midpoint suggest a balance between supply and demand. Buyers will have to push and sustain the price above the downtrend line to gain the upper hand. The BTC/USDT pair could then rally to $22,800, where the bears may again mount a strong defense.
On the downside, the bears may find it difficult to sink the price below the zone between $18,626 and $17,622 considering the bulls are expected to defend the zone with all their might. Still, if the zone cracks, the pair could start the next leg of the downtrend. The pair could then
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