Bitcoin (BTC) Shows Positive Monthly Close in September
After experiencing an 11% drop in the third quarter of 2023, Bitcoin managed to achieve a positive monthly close in September, which is the first since 2016. This provides a silver lining for bulls who are looking to build upon this momentum in October. Historical data shows that October has a bullish track record, with only 2014 and 2018 producing negative monthly returns since 2013. While there are no guarantees that history will repeat itself, traders can use this data as a starting point to formulate strategies.
Altcoins Gain Strength as Bitcoin Rises
The recent strength in Bitcoin has also sparked interest in altcoins, as select ones attempt to break above their overhead resistance levels, signaling the start of a robust recovery. However, not all altcoins are expected to perform well. The ones showing strength are likely to lead the recovery higher. Let’s take a look at the charts of the top five cryptocurrencies that could outperform in the near term.
Bitcoin Price Analysis
Bitcoin has been trading above its moving averages since September 28, indicating a positive sign for buyers. While bears are trying to halt the rally near $27,500, bulls have not given up much ground, suggesting that every minor dip is being purchased. This increases the chances of a break above $27,500 and a potential retest of the crucial overhead resistance at $28,143. A strong bounce off the 20-day exponential moving average could push the price above $28,143 and potentially climb to $30,000. However, if the price drops below solid support at $26,000, this bullish view will be negated.
Maker Price Analysis
Maker broke and closed above $1,370 on September 26, indicating the start of a new uptrend. Bears attempted to stall the up-move at $1,600, but bulls bought the dip at $1,432, indicating positive sentiment. If bulls push the price above $1,600, Maker could rally to $1,760 and then $1,909. However, a sharp downturn below $1,432 could lead to a retest of the breakout level at $1,370. To keep the uptrend alive, bulls must buy the dips to the 20-EMA and overcome the overhead resistance at $1,600.
Aave Price Analysis
Aave is attempting to break above its long-term downtrend line, signaling a potential trend change. The rebound off the 20-day EMA on September 28 indicates a shift in sentiment from selling on rallies to buying on dips. Bulls need to prevent the price from slipping below the 20-day EMA to increase the likelihood of a break above the downtrend line and a potential move towards $88. However, a crack in the 20-day EMA would suggest continued bearish activity at higher levels. The relative strength index and upsloping 20-EMA indicate that bulls are currently in control.
THORChain Price Analysis
THORChain has repeatedly tested overhead resistance at $2 within the past few days. If bulls maintain their position and prevent significant losses, there is potential for a rally above $2 towards $2.28 and eventually $2.78. However, if bears take control and push the price below moving averages, it could indicate an end to bullish sentiment and a drop to $1.37. On the 4-hour chart, bulls have not allowed the price to sustain below the 20-EMA, suggesting that lower levels are attracting buyers.
Injective Price Analysis
Injective has been trading within a range between $5.40 and $10. The moving averages have completed a bullish crossover, indicating that bulls have the upper hand. The price could potentially rise to $8.28, where strong resistance may be encountered. If bulls overcome this barrier, the pair could soar towards $10. However, bears must defend the overhead resistance and quickly bring the price below moving averages to prevent an upside. The first support is at the 20-EMA, and a break below it would signal profit booking by bulls and a potential drop to the 50-SMA.
Hot Take: Altcoins Show Strength as Bitcoin Gains Momentum
As Bitcoin continues to gain strength and achieve positive monthly closes, altcoins are also showing signs of recovery. Select altcoins are breaking above their resistance levels, indicating a potential uptrend. However, not all altcoins will perform well, so it’s important to analyze individual charts for the top performers. Bitcoin’s performance in October has historically been bullish, providing a good starting point for traders to formulate strategies. Overall, the crypto market is showing signs of resilience and potential for further growth.
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