Bitcoin (BTC) is struggling to stay above $ 50,500, but that hasn’t stopped altcoins from following in Ether (ETH) ‘s footsteps after the senior altcoin hit $ 4,000 on September 3. This has driven Ether’s market dominance to over 20%, while Bitcoin’s dominance has shrunk to 41.1%.
Bitcoin’s hesitation in recent days, however, hasn’t changed the outlook for senior commodities strategist Mike McGlone at Bloomberg, who has maintained a target of $ 100,000 for bitcoin and $ 5,000 for ether.
Daily view of crypto market data. Source: Coin360
Aside from the top two cryptocurrencies, the non-fungible token (NFT) sector has been attracting investor attention since July. Cointelegraph official Jordan Finneseth recently suggested that the recent drop in transaction volume and a few other reasons could signal a capital rotation from NFTs into the decentralized financial sector.
Let’s look at the charts of the top 5 cryptocurrencies that can outperform each other in the short term.
BTC / USDT
Bitcoin broke the $ 50,500 resistance to hit $ 51,000 on September 3, but the long wick on the daily candle suggests a lack of buying at higher levels. This was followed by a doji candlestick pattern on September 4th, indicating indecision between bulls and bears.
BTC / USDT daily chart. Source: TradingView
The negative divergence in the relative strength index (RSI) suggests that bullish momentum may be wearing off, but the rising moving averages suggest that the path of least resistance is up.
If buyers push the price above $ 51,000, the BTC / USDT pair could continue its uptrend. The first stop could be at $ 55,000, but if that resistance is crossed, the upward move could hit $ 60,000.
Conversely, if the price drops from the resistance zone from $ 50,500 to $ 51,000, the pair may fall to the 20-day exponential moving average ($ 47,998).
This is important support for the bulls as if it cracks the pair could stay in a range between $ 46,200 and $ 50,500 for a few days. A break and close below $ 46,200 could bring the pair down to the 50-day simple moving average ($ 43,291).
BTC / USDT 4-hour chart. Source: TradingView
The price was trading between the 20-EMA and the overhead zone. This narrowing of the range is likely to lead to a major breakout soon. If buyers push the price above $ 51,000, bullish momentum could pick up and signal the resumption of the uptrend.
Alternatively, if the price falls below the moving averages, it suggests that the bears are aggressively defending the overhead resistance zone. That could push the price down to $ 46,200. A rebound from this support could keep the pair in the range for some time, but a break below that will suggest the bulls may lose their hold.
LTC / USDT
The bulls are trying to push and hold Litecoin (LTC) above the overhead resistance at USD 225.30. When they are successful, they complete a rounded bottom pattern that could start a new uptrend.
LTC / USDT daily chart. Source: TradingView
The long wick of the Sept. 4 candle showed sales near overhead resistance, but the positive sign is that the bulls haven’t given in much. You try again to overcome the overhead hurdle.
If they can hold the price above $ 225.30, the LTC / USDT pair could start an upward move to $ 300 and later to the pattern target at $ 347.30. The rising 20-day EMA ($ 184) and the RSI in the overbought territory suggest that the path of least resistance is on the upside.
This bullish view will be invalidated if the price drops from current levels and falls below the 20-day EMA.
LTC / USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bears tried to stop the bullish move on the overhead resistance at USD 225.30, but the bulls did not give up much ground. This suggests that with every slight drop, buyers will continue to pile up.
Both moving averages are sloping up and the RSI is in the overbought territory, suggesting that the bulls are in charge. A break and close above $ 225.30 could open the doors to a rally to $ 250.40. Conversely, a break and a close below the 20 EMA will be the first sign of weakness.
FIL / USDT
Filecoin’s FIL token exceeded the overhead resistance at $ 98 today. This completes a rounded bottom pattern, indicating the beginning of a new uptrend. The bottoming has a model target at $ 156.
FIL / USDT daily chart. Source: TradingView
The 20-day EMA ($ 79) has risen and the RSI has risen above 81, indicating a possible turnaround. Typically, breaking out of a large pattern will retest the breakout level. In this case, the price can drop to $ 98.
If the bulls turn the $ 98 level into support, the FIL / USDT pair could continue its bullish trend. On the contrary, if bears pull and keep the price below $ 98, it suggests that the recent breakout was a bull trap. The pair can then fall to the 20-day EMA.
If price bounces off this support, the bulls could try again to push price above the overhead resistance and continue the uptrend. The bears will have to move below the 20-day EMA to gain the upper hand.
FIL / USDT 4-hour chart. Source: TradingView
The 4 hour chart is showing strong momentum in favor of buyers. This has pushed the RSI deep into the overbought territory, indicating the possibility of a minor correction or consolidation in the short term.
Unless the bulls give way much, it suggests that traders are not posting profits as they expect another surge. This increases the likelihood of the uptrend resuming.
However, the bears are likely to have other plans. They will try to push the price back below $ 98 and trap the aggressive bulls.
FTT / USDT
FTX Token (FTT) broke the previous all-time high of $ 63.13 on September 1st and followed a new all-time high of $ 70.72 on September 2nd. A new all-time high is a sign of strength, but the bulls were unable to keep the price above the breakout level of $ 63.13.
FTT / USDT daily chart. Source: TradingView
This suggests that the bears have not given up and are trying to stop the upward move. The negative divergence in the RSI suggests that bullish momentum may slow.
If bears pull the price below $ 57.93, the FTT / USDT pair could hit the 20-day EMA ($ 53). A strong rebound from this level suggests that the bulls pile up on dips. Buyers will then try again to push the price above the $ 63.13 to $ 70.72 resistance zone. If they do that, the pair could climb to $ 84.
This positive view will be invalidated if the price falls below the 20-day EMA. Such a move suggests that the recent breakout above $ 63.13 was a bull trap.
FTT / USDT 4 hour chart. Source: TradingView
The 4 hour chart shows the formation of a descending triangle pattern that completes on a break and closes below $ 59. This bearish setup has a model target at $ 47.50. The flat 20 EMA and the RSI just above midpoint don’t give the bulls or bears a clear advantage.
If buyers drive and hold the price above the downtrend line, the bearish pattern becomes invalid. The price can then rise to $ 65 and later to $ 70.72. A breakout and a close above this level could mark the next stage of the uptrend.
Related: Nigeria plans to introduce CBDC, Salvadoran pensioners protest against the Bitcoin law, Twitter adds BTC and ETH tip function: Hodler’s Digest, August 29-Sept. 4th
IOTA / USD
IOTA (MIOTA) rebounded sharply from $ 0.96 on September 1st to $ 2.08 on September 4th. This upward move dragged the RSI above 82, suggesting that the rally was overdrawn for the short term.
MIOTA / USDT daily chart. Source: TradingView
The MIOTA / USDT pair is currently experiencing profit booking and could fall to initial support at the 38.2% Fibonacci retracement level at $ 1.64. A strong rebound from this level will suggest traders buy on smaller dips.
The bulls will then make one more attempt to push the price above $ 2.08. If successful, the pair could gain momentum and rebound towards $ 2.40 then $ 2.67.
Alternatively, if bears pull and hold the price below $ 1.64, the next stop could be in the zone between the 50% retracement level at $ 1.51 and the 61.8% retracement level at $ 1.38. A deeper correction could delay the start of the next leg of the uptrend.
MIOTA / USDT 4 hour chart. Source: TradingView
The long wick on the 4-hour chart above the psychological barrier at $ 2 shows that the bears are trying to defend this level. Profit booking can bring the price down to the 20-EMA, which is likely to act as a strong support.
If price rallies with strength from the 20-EMA, it will indicate that sentiment remains positive and bulls pile up on dips. Buyers will then attempt to continue the uptrend by pushing the price above $ 2.08.
A break and close below the 20 EMA will be the first sign of weakness. That could open the doors for further decline to $ 1.50.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, so you should do your own research when making a decision.