The sentiment in the cryptocurrency markets can change rapidly, as evidenced by the Crypto Fear and Greed indicator, which climbed from extreme fear on September 30 to neutral today. The feeling could be even better if Bitcoin (BTC) breaks out of the crisis and continues to rise above the psychologically critical level of 50,000 dollars.
An important event that can increase short-term sentiment is the decision of the US Securities and Exchange Commission (SEC) on applications for bitcoin exchange traded funds (ETFs). Although the Securities and Exchange Commission (SEC) has extended the deadline for four Bitcoin ETF registrations by 45 days to October 1, Eric Balchunas, chief ETF analyst at Bloomberg, hopes that the futures-backed Bitcoin ETF will receive a green signal. in mid-October.
See daily market data for cryptocurrencies. Source: Coin360
Balchunas said that the futures-based Bitcoin ETF implementation, which has found support from US Securities and Exchange Commission President Harry Gensler, “is very active and will probably go according to plan (we think there is a 75% chance of approval in October). “.
If the bulls, depending on the latest strength of bitcoin, break the $ 50,000 barrier, many altcoins could gain traction. Let’s examine the charts of the 5 best cryptocurrencies that can outperform in the short term.
BTC / USDT
Bitcoin has broken above the 50-day single-moving average ($ 46,633) on October 1, but the Bears are trying to stop recovery near the $ 48,843.20 resistance. In a positive sign, however, the bulls allowed the price not to fall below the 50-day simple moving average.
BTC / USDT daily chart. Source: TradingView
A 20-day exponential moving average is emerging ($ 45,141), and the relative strength index (RSI) is in positive territory, indicating that bulls are ahead. If buyers increase the price above $ 48,843.20, the BTC / USDT pair could rise to $ 52,920.
This level can in turn act as a serious resistance, but if the bulls break out, the head and shoulders lose the pattern. This could lead to a recovery in momentum, and the pair could rise to $ 60,000.
Contrary to this assumption, if the price falls below the current level and falls below the moving average, it will indicate that higher levels attract strong sales bears. The pair can then drop to $ 40,000.
4-hour BTC / USDT chart. Source: TradingView
The moving averages for both the 4-hour chart and the RSI slope up near overbought territory, indicating that the path of least resistance is on the rise. For a while, the price has consolidated in a narrow range from $ 47,000 to $ 48,495.
If the bulls pushed the price above $ 48,843, the pair could rise to the psychological level of $ 50,000 and then challenge the extreme resistance to $ 52,920.
Conversely, if the price falls and falls below the 20-EMA, this will indicate that short-term traders are making a profit. The pair can then fall to $ 45,000 and then to 50-SMA.
Moon / USDT
In October, the Terra LUNA token broke over the downtrend line, and the bulls followed and broke above the all-time high of $ 45.01 today. However, the long wake of daylight indicates that the bears are aggressively trying to defend the $ 45.01 level.
LUNA / USDT daily chart. Source: TradingView
If the price falls below the current level, but bounces off the downtrend line, this will indicate that the mood is still positive and traders are buying on downturns.
The bulls will then make another attempt to push the price above the resistance range of $ 45.01 and $ 46.17 and begin the next phase of the uptrend. The psychological level of $ 50 can act as resistance, but if it is exceeded, LUNA / USDT can rise to $ 65.
Conversely, if the price falls and falls below the 20-day moving average ($ 36.30), the next stop may be the 50-day simple moving average ($ 32.97). A break during this support will signal that the bulls are losing control.
LUNA / USDT 4-hour chart. Source: TradingView
Although the bulls pushed the price above $ 45.01, the long wick of light shows that it is selling at higher levels. The Bears are currently trying to get the corner the aggressive bulls that may have bought them over $ 45.01.
The first support on the back is 20-EMA. A strong setback from this support will indicate that the mood is still positive. The bulls then try to push the price above $ 46.17.