This indicates that sentiment is still negative and that traders are not interested in risking their portfolios.
US stock markets fell sharply on October 7 after the release of non-farm payrolls data for September, but managed to post minor gains during the week. Last week, the S&P 500 rose 1.5% and the Nasdaq Composite rose 0.7%. Meanwhile, Bitcoin is gearing up for the end of the week with marginal gains of around 2%.
Daily view of cryptocurrency market data. Source: Coin360
Bitcoin has managed to avoid a crash in recent days, even as US stock markets have come under pressure. This is the first sign that selling pressure may be easing and traders may be reluctant to give up holdings at lower levels.
But for a sustainable recovery, Bitcoin will need some support in the form of a return to risk appetite. Until then, the range-bound is likely to continue to fluctuate with some altcoins presenting trading opportunities. Let’s take a look at the charts of five cryptocurrencies that look interesting in the short term.
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Bitcoin / US Dollar
Bitcoin is struggling to stay above the 50-day simple moving average ($19,961), which indicates that the bears have not yet given up. The sellers pulled the price below the 20-day exponential moving average ($19,628) on October 7, but failed to continue lower to support the price at $18,626. This indicates that the bulls are buying the dips and trying to form a higher bottom in the short term.
BTC/USDT daily chart. Source: Trading View
The flat 20-day EMA and the Relative Strength Index (RSI) just below the mid-point indicate an equilibrium between supply and demand. Buyers must push the price and hold above the downtrend line to gain the upper hand. The BTC/USDT pair could then rise to $22,800 as the bears can once again put up a solid defense.
On the other hand, it may be difficult for the bears to push the price below the $18.626-$17,622 area since the bulls are expected to defend the area with all their might. However, if the area is breached, the pair may start the next phase of the downtrend. The pair could then drop to $15,000.
BTC/USDT on the 4-hour chart. Source: Trading View
The pair’s failure to break above the $20,475 resistance may have prompted short-term traders to take profits, sending the price below the moving average. What is less positive, however, is that the bulls are buying declines towards the uptrend line.
If the price breaks above the moving averages, the pair could rise again to $20,475. Bulls need to push the price and hold above this resistance to complete the ascending triangle pattern. If this happens, the pair may rise to the target level at $22,825.
This bullish pattern will reverse upon a breakout and a close below the uptrend line. If this happens, selling could rise and the pair could drop to the strong support level at $18125.
XRP / USDT
XRP
knock
$0.52
It took back the 20-day moving average ($0.47) on Oct. 3, indicating that lower levels are attracting buyers. The 20-day moving average and the RSI near the overbought territory indicate that the bulls have the upper hand.
XRP/USDT daily chart. Source: Trading View
If the price rises and breaks the upper resistance at $0.56, XRP/USDT could rise to $0.66. This level may become a major problem again, but if the bulls break it, the upside may move to $0.80.
Alternatively, if the price drops from $0.56, the bears will pull the pair towards the 20-day moving average again. If this support breaks, the pair may decline to the breakout level of $0.41. A strong pullback from this level might keep the price range between $0.41 and $0.56 for a while.
XRP/USDT, 4-hour chart. Source: Trading View
The pair gradually rose to the upper resistance level at $0.56. Both moving averages are gradually sloped down and the RSI is in the positive territory, indicating that the buyers have the upper hand.
The pair deviated from $0.53, but the bulls defended the 20-day moving average. If buyers push the price above the $0.53-$0.56 resistance area, the rally could accelerate.
