Top 3 Cryptocurrencies To Watch This Week: BTC, DOT, UNI
Bitcoin (BTC) has remained steady at about $55,000. Bitcoin’s market domination has risen from 40.70 percent on September 12 to about 45 percent today, thanks to a strong surge. This demonstrates that Bitcoin has primarily led to a robust rebound in cryptocurrencies.
The Fear and Greed indicator has moved into the Greed zone as a result of the strong rise in Bitcoin. Although this indication shows that markets have risen rapidly in a short period of time, it does not always indicate a verified short-term peak.
Let’s look at the charts of the top-five cryptocurrencies that are likely to hold their value in the near future.
On Oct. 6, Bitcoin broke above the hard overhead barrier at $52,920, and bulls have kept the price above the breakthrough level since then. This is a good indication since it shows that purchasers are holding on to their positions in anticipation of higher prices in the near future.
The moving averages have completed a bullish crossing, and the relative strength index (RSI) is nearing overbought territory, indicating that the path of least resistance is up.
The rise may return if buyers push the price above $56,100, and the BTC/USDT pair could surge above $60,000. A retest of the all-time high of $64,854 is conceivable above this level.
The pair might drop to the 20-day exponential moving average ($49,504) if bears bring the price below $52,920, contrary to popular belief. The bulls must maintain this level of support since a breach below it might signify a shift in short-term attitude.
After that, the pair may fall to the 50-day simple moving average ($47,578) and then to $40,000.
The bulls are confronting selling in the $55,750 to $56,100 range, but buyers have not allowed the price to go below the 20-EMA, which is a favorable indication. This means the bulls are expecting a break over the overhead zone.
If this occurs, the pair may resume its upward trajectory. A break and closure below the 20-EMA will be the first indicator of weakness. The RSI is creating a negative divergence, which indicates that momentum is fading.
The price might be pulled to the 50-SMA if it breaks and closes below the 20-EMA. A breach below this level of support might signal the start of a more serious downturn.
Polkadot (DOT) has been steadily rising near the overhead resistance level of $38.77. The RSI has broken over the downtrend line, and the 20-day EMA ($32.15) has begun to turn up, signaling a buyer’s edge.
The head and shoulders pattern will be invalidated if bulls push the price over $38.77. A bearish setup failing is a bullish indication because it may catch aggressive bears who will then try to cover their holdings, resulting in a short squeeze.
After there, the DOT/USDT pair may begin its ascent to $49.78. Alternatively, if the price drops below the moving averages and breaks below the present level or above resistance, the pair may drop to $28.60.
For a few days, a bounce off this support may keep the pair range-bound. To declare their dominance, the bears will have to bring the price below the neckline.
Both moving averages are trending upwards, and the RSI is positive, suggesting the buyers are in command. The pair may drop to the 20-EMA, which will almost certainly function as solid support. Bulls will aim to push the pair to $38.77 if the price rises from this support.
This level may function as a strong barrier once again, but if bulls do not give up much ground from it, the chances of a break over it become more likely.
The pair may tumble to the 50-SMA if bears drag the price below the 20-EMA. If this support is broken and closed below, the price might fall to $31 and then $29.
For the previous several days, the UNI/USDT Uniswap (UNI) has been trading above the 20-day EMA (24.55), indicating that bulls are attempting to defend this level. The bears, on the other hand, aren’t about to give up, since the price hasn’t risen beyond the neckline.
To complete an inverted H&S pattern, buyers must push and close the price above the neckline. The pattern objective for this bullish reversal scenario is $36.98, but the rise may not be linear as bears attempt to defend the $31.41 level.
The 20-day EMA is steadily increasing, and the RSI is slightly over the midway, indicating a minor advantage for bulls. If the price breaks and closes below the 20-day EMA, the benefit would be gone.
The UNI/USDT pair might fall below $22 in this scenario. This level might serve as a support, but if bears push the price below it, the pair could fall to $17.73.
The price has been consolidating in a tight range between $24 and $26 for some time, according to the 4-hour chart. Such narrow ranges usually signal the beginnings of a directional move.
The likelihood of a break over the neckline improves if buyers drive and keep the price above $26. This may set the stage for a run to the next overhead resistance at $30, and ultimately to $31.
If the price falls below $24, on the other hand, the short-term trend may shift in favor of bears. The price of the pair may then fall to $22.