Bitcoin (BTC) continued to trade near the $ 55,000 level. Bitcoin’s sharp rally has seen its market dominance rise from 40.70% on September 12 to around 45% today. This shows that Bitcoin has contributed significantly to the strong recovery in cryptocurrency.
This sharp rise in Bitcoin has pushed the Fear and Greed Index into greedy territory. While this indicator indicates that the markets may rise rapidly in the short term, it does not necessarily indicate a specific peak in the short term.
See daily cryptocurrency market data. Source: Coin360
History suggests that traders who sold their bitcoin positions only on this scale could lose substantial profits before the correction begins, Cointelegraph analyst Marcel Marcel Bechmann explained.
Can bulls prolong the upward movement and constantly push the price towards the high point of Bitcoin? If this happens, all selected coins can go up. Let’s take a look at the charts of the five major cryptocurrencies that may remain strong in the short term.
BTC / USDT
Bitcoin rallied above the tough $ 52,920 resistance level on October 6, and the bulls have been holding the price above the eruption level ever since. This is a positive sign as it indicates that buyers can maintain their positions and expect higher levels in the short term.
BTC / USDT daily chart. Source: TradingView
The moving averages have completed the bullish cross and the Relative Strength Index (RSI) is close to the overbought zone, indicating that the path of least resistance is heading up.
If buyers push the price above $ 56,100, the trend could continue and BTC / USDT will rise to $ 60,000. Above this level, the all-time high of $ 64,854 could be retested.
Contrary to this assumption, if the bears drove the price below $ 52,920, the pair could fall to the 20-day exponential moving average ($ 49,504). This is important support to protect the bulls as a break below it could signal a change in emotion in the short term.
The pair may then drop to the 50-day moving average ($ 47,578) and approach $ 40K.
4-hour BTC / USDT chart. Source: TradingView
The bulls are facing sells in the $ 55,750-56,100 range, but in a positive sign, buyers have prevented the price from falling below the 20-EMA. This indicates that the bulls are expecting a flash above the upper zone.
If this happens, the pair may continue the uptrend. The breakout and close during the 20 EMA will be the first signs of weakness. The RSI is forming a negative divergence, which indicates a possible weakening of the momentum.
A break and close below the 20-EMA could bring the price back to the 50-SMA. A pause during this support can cause a deeper correction.
DOT / USDT
Polkadot (DOT) is moving up to the upper resistance level of $ 38.77. The RSI has broken through the downtrend line and the 20-day moving average ($ 32.15) begins to rise, indicating an advantage for buyers.
DOT / USDT daily chart. Source: TradingView
If the bulls push the price above $ 38.77 it will invalidate the head and shoulders pattern. Failure in a bearish setup is a bullish signal, as aggressive bears who then try to close their positions can be caught and hug shortly.
Then the DOT / USDT pair could start the journey from $ 49.78. Alternatively, if the price breaks the current level or upper resistance and breaks below the moving averages, the pair could drop to $ 28.60.
Withdrawal of this support could constrain the pair’s territory for several days. Bears must pull the prize by the neck to show their superiority.
DOT / USDT 4-hour chart. Source: TradingView
Both the moving average and the RSI slope into positive territory, indicating that buyers are in control of the market. The pair may fall to the 20-EMA, which is likely to serve as strong support. If the price rises from this support, the bulls will try to push the pair towards $ 38.77.
This level, in turn, can act as strong resistance, but if the bulls do not give up the ground, the likelihood of a break through it increases.
Conversely, if the bears pull the price below the 20-EMA, the pair could drop to the 50-SMA. A break and stop during this support could drop to $ 31 and then $ 29.
UNI / USDT
Uniswap (UNI) has remained above the 20-day moving average (24.55) in recent days, indicating that the bulls are trying to protect this support. However, the bears are in no mood to leave as they did not allow the price to rise above the neck.