Bitcoin (BTC) has been stuck in a tight trading range over the past few days, even as the S&P 500 has experienced a downward trend. This stability is seen as a positive sign, indicating that cryptocurrency traders are not panicking and selling off their holdings. In fact, data from Glassnode shows that short-term Bitcoin holders have the least amount of supply in over a decade. This suggests that Bitcoin’s supply is gradually shifting to stronger hands.
The uncertainty surrounding Bitcoin’s next move may have kept traders cautious, leading to subdued price action in several large altcoins. However, there are several altcoins that are showing signs of a recovery in the near term.
Bitcoin’s price has managed to stay above the 20-day exponential moving average, but there is a lack of demand at higher levels. If the price falls below the 20-day EMA, the advantage will shift in favor of the bears, potentially pulling the price down to $24,800. On the other hand, if the price rises above the 50-day simple moving average, it will signal a return of buyers and a possible rally to $28,143.
Chainlink (LINK) has seen a potential trend change as it surged above the downtrend line. The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that buyers are in control. The bulls are likely to buy any dips to the 20-day EMA, with an upside target of $8 and eventually $8.50. However, a break below the 20-day EMA could signal profit-booking and a retest of the breakout level.
Maker (MKR) turned down from resistance at $1,370, indicating that bears are defending this level. The 20-day EMA is an important support to watch, and a rebound from this level could suggest continued buying interest. A break above the resistance could accelerate the price towards $1,759. Conversely, a break below the 20-day EMA could keep the price range-bound between $980 and $1,370.
Arbitrum (ARB) is in a downtrend, but bulls are trying to hold on to their positions. If the price rises above the 20-day EMA, it could signal a sustained recovery towards $1.04. On the downside, the support is at $0.80, and a break below this zone could indicate a resumption of the downtrend.
Theta Network (THETA) has absorbed the supply and is attempting a comeback. Bulls are expected to defend the 20-day EMA, and if the price climbs above the 50-day SMA, it could retest $0.70. However, a move below the 20-day EMA could retest $0.57.
While Bitcoin’s price has remained stable, there are signs of potential recovery in several altcoins. The charts of the top-five cryptocurrencies suggest that a bullish move in Bitcoin could act as a catalyst for an altcoin rally. However, as with any investment or trading decision, it is important to conduct thorough research and consider the risks involved.
