After a surge of 80% in the first two quarters of 2023, Bitcoin (BTC) had a drop of 11% in the third quarter ending September. Nevertheless, bulls managed to have a positive monthly close in September, the first since 2016. Now, buyers will try to take advantage of this momentum in October, which has a bullish track record. According to CoinGlass data, only 2014 and 2018 have had negative monthly returns since 2013 in October. This data can be used as a good starting point for traders to create strategies.
The recent surge in Bitcoin has also increased the interest in altcoins. Some altcoins are trying to break above their respective overhead resistance levels, which could be the beginning of a strong recovery. The bullish trend could become even more evident if Bitcoin extends its relief rally to $28,000.
Not all altcoins are expected to fly high. The cryptocurrencies that are displaying strength are the ones that may drive the recovery higher. Let’s analyze the charts of the top-5 crypto that could outperform in the near future.
Bitcoin price analysis
Since Sep. 28, Bitcoin has been trading above the moving averages, a crypto positive sign. This indicates that the bulls are gradually gaining the upper hand.
The bears are attempting to stop the rally close to $27,500, but the bulls are not giving up much ground. This implies that buyers are buying every minor dip, increasing the likelihood of a break above $27,500. The BTC/USDT pair might then test the key resistance at $28,143. This level could be met with aggressive selling by the bears.
If the crypto price drops sharply from $28,143, the pair could touch the 20-day exponential moving average ($26,630). A powerful bounce from this level could push the crypto price above $28,143. The pair could then surge to $30,000.
This crypto positive view will be nullified in the short-term if the crypto price turns down and dives below the strong support at $26,000.
The 4-hour chart shows that the pair is taking support at the 20-EMA. This indicates that the bulls are attempting to gain control. Nevertheless, the bears are unlikely to give up easily and they will try to halt the recovery in the area between $27,300 and $27,500. The sellers will then need to drag the price below the 20-EMA to gain control.
Conversely, if the bulls break the resistance at $27,500, it could lead to a potential rally to $28,143. This level could witness a tough fight between the buyers and sellers.
Maker price analysis
MKR/USDT pair surged past $1,370 on Sep. 26, suggesting the emergence of a crypto positive trend. Traders usually buy on dips when the crypto price is on the rise.
The bears attempted to block the uptrend at $1,600 but the bulls bought the dip at $1,432. This implies that sentiment is still bullish and lower levels are being acquired. If the bulls can push the crypto price above $1,600, the MKR/USDT pair could surge to $1,760 and then skyrocket to $1,909.
Contrary to this assumption, if the crypto price suddenly drops and slips below $1,432, it may lead to a retest of the breakout level at $1,370. The bears will have to drag the crypto price below this support to show that the uptrend could be over.
The 4-hour chart shows that the bears are strongly defending the overhead resistance at $1,600. If the bulls want to keep their chances of continuing the uptrend alive, they will need to buy the dips to the 20-EMA.
If the crypto price rebounds from the 20-EMA, the buyers will try to break the barrier at $1,600 and initiate the next leg of the uptrend. On the other hand, a plunge to $1,432 and then to the 50-simple moving average may start if the pair slides below the 20-EMA.
Aave price analysis
Aave (AAVE) is attempting to break out of its long-term downtrend line, signaling a potential shift in trend. The rebound off the 20-day EMA ($62.42) on Sep. 28 suggests a change from selling on rallies to buying on dips.
Bears will try to impede the recovery at the downtrend line, however, if bulls do not let the price dip below the 20-day EMA, it will raise the likelihood of a breakout above it. The AAVE/USDT pair could then initiate an uptrend towards $88.
The 20-day EMA is the key support to watch on the downside. If this level is breached, it will suggest that bears remain active at higher levels, potentially pushing the price down to the 50-day SMA ($58.82).
The upsloping 20-EMA and the relative strength index (RSI) close to the overbought zone demonstrate that the bulls are in control. The rally may face selling pressure at the downtrend line, but the bulls will try to arrest the decline at the 20-EMA.
A strong rebound off the 20-EMA could open the door for a potential rise above the downtrend line. The pair may first surge to $75 and then to $80. Bears will need to sink and maintain the price below the 20-EMA to break the momentum.
THORChain price analysis
The overhead resistance at $2 has been tested by THORChain (RUNE) for the third time in the past few days, which weakens the resistance level. If bulls don’t give up much ground from the current level, it may lead to a rally above $2, potentially up to $2.28 and then $2.78.
The crypto price today could drop to $1.37 if the bulls give up and the price turns down, plunging below the moving averages. However, the bears are selling near the overhead resistance at $2, and the bulls have not allowed the price to stay below the 20-EMA, indicating that lower levels are attracting buyers.
If the crypto price today is pushed and maintained above $2, it will signal the start of a new uptrend, potentially rising to $2.35. On the other hand, if the crypto down today breaks below the 20-EMA, it will indicate a deeper correction to the 50-SMA.
Injective price analysis
The crypto price of Injective (INJ) has been swinging inside a wide range between $5.40 and $10 in recent days. This kind of price action can be unpredictable and volatile, but traders may be able to find opportunities when the boundaries are far apart.
The moving averages have recently formed a bullish crossover and the RSI is in the positive range, suggesting that the bulls are in control. The INJ/USDT pair could first climb to $8.28, where the bears may put up a strong resistance. If the bulls can break through this barrier, the price could pick up momentum and surge toward $10.
If the bears want to prevent the upside, they will have to defend the overhead resistance and quickly push the price below the moving averages. The pair could then retest the immediate support at $6.36.
On the 4-hour chart, both moving averages are sloping upwards and the RSI is in the overbought zone, indicating that the bulls have an advantage. The rally could reach $8.28 which is likely to act as a strong hurdle.
On the downside, the first support is at the 20-EMA. A bounce off this level will show that the uptrend is still intact. Conversely, a break below the 20-EMA will mean that the bulls are taking profits. This could pull the price down to the 50-SMA.
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