Bitcoin (BTC) experienced a significant drop of around 11% in the third quarter of 2023 following a strong rise in the first two quarters. However, there is some positive news for Bitcoin bulls as September marked the first positive monthly close since 2016. This could potentially set the stage for a further bullish movement in October, which has historically been a good month for Bitcoin.
Altcoins have also seen a boost in interest due to the recent strength in Bitcoin. Some altcoins are attempting to break through their resistance levels, indicating the start of a strong recovery. The momentum could continue to pick up if Bitcoin extends its relief rally to $28,000.
While not all altcoins are expected to experience a strong rally, there are some cryptocurrencies that are showing strength and could potentially lead the recovery higher. Let’s take a look at the top 5 cryptocurrencies to watch in the near term.
Bitcoin:
Bitcoin has been trading above the moving averages since September 28, indicating a positive sign for buyers. While the rally may face resistance near $27,500, the bulls have not given up much ground, suggesting that every minor dip is being bought. If Bitcoin manages to break above $27,500, it could retest the crucial overhead resistance at $28,143. A strong bounce off the 20-day exponential moving average could push the price above $28,143, potentially leading to a climb to $30,000.
Maker (MKR):
Maker broke and closed above $1,370, signaling the start of a new uptrend. If the price surpasses $1,600, the MKR/USDT pair could rally to $1,760 and then to $1,909. However, if the price turns down sharply and drops below $1,432, it could indicate a retest of the breakout level at $1,370. A drop below this support level could suggest that the uptrend is over.
Aave (AAVE):
Aave is attempting to break above a long-term downtrend line, which could indicate a potential trend change. The rebound off the 20-day EMA on September 28 suggests a change in sentiment from selling on rallies to buying on dips. If the price remains above the 20-day EMA, it increases the likelihood of a break above the downtrend line and a move towards $88. On the downside, the 20-day EMA is an important support level to watch.
THORChain (RUNE):
THORChain has reached the overhead resistance at $2 multiple times, which could weaken the resistance level. If bulls maintain their ground, the RUNE/USDT pair could rise to $2.28 and then to $2.78. However, a drop below the moving averages could suggest that the bulls have given up and the pair may drop to $1.37.
Injective (INJ):
Injective has been trading within a large range between $5.40 and $10. While the price action within a range can be unpredictable, there are trading opportunities when the boundaries are far apart. The moving averages and the RSI suggest that the bulls have the upper hand, and if they can overcome the resistance at $8.28, the pair could rally towards $10.
These analyses are not investment advice, and readers should conduct their own research before making any investment decisions.
