Bitcoin (BTC) has not rallied after breaking above $65,000, but a positive sign is that bulls have not given up much ground. This shows that buyers are holding their ground as they expect the rally to continue.
US spot Bitcoin ETFs saw $1.1 billion inflows last week, the largest weekly inflow since July 15-19, indicating a positive sentiment shift. The rally pushed the crypto fear and greed index to a greed level of 63 on September 29.
Another sign that retail traders are getting into the crypto market is the increase in downloads of Coinbaseâs official app on the Apple AppStore. On September 28, the app was the 385th most downloaded app, well above the 500th spot and a corresponding driver of the bull market.
Can buyers sustain the momentum, pushing Bitcoin and select altcoins higher? Letâs take a look at the top 5 cryptocurrencies that look strong on the charts.
BTC Technical Analysis
Bitcoin has held above the breakout level of $65,000, suggesting that bulls are in no hurry to close their positions.
The 20-day exponential moving average ($62,650) has turned up and the relative strength index (RSI) is in the positive zone, suggesting that bulls are in command. If the price rises from current levels, the possibility of a rally to $70,000 increases. Sellers are expected to defend the zone between $70,000 and $73,777 strongly.
On the downside, the bears will have to pull the price below the 20-day EMA to indicate weakening bullish momentum. After that, the BTC/USDT pair could drop to the 50-day simple moving average ($60,206).
Both moving averages are sloping up on the 4-hour chart and the RSI is in the positive zone, indicating that the path of least resistance is to the upside. If the price rises above $66,500, the pair could surge to $70,000.
Conversely, a break below the 20 EMA would indicate that traders are booking profits. The next support on the downside is at the 50 SMA. A break below this support could drag the price down to the breakout level of $61,200.
XRP Technical Analysis
XRP (XRP) has formed an ascending triangle pattern, which will complete on a close above $0.64.
If that happens, the XRP/USDT pair could start a rally towards $0.74. This level has proven to be a formidable barrier for months; hence, the bears will try to defend it once again. However, if the bulls prevail, the pair could surge towards the pattern target of $0.90.
Conversely, if the price turns down sharply from the current level and breaks below $0.64, it will suggest that the breakout could be a bull trap. The pair could then drop to the 20-day EMA ($0.58).
The 4-hour chart shows that the bulls have broken through the $0.64 resistance, indicating solid buying at higher levels. If the price sustains above $0.64, the pair could start a move towards $0.74.
Meanwhile, the bears may have other plans. They will try to pull the price below $0.64 and trap the aggressive bulls. After that, the pair could drop to the 20-EMA. Buyers will have to defend this level if they want to maintain the bullish momentum.
TAO Technical Analysis
Bittensor (TAO) rallied and closed above the $530 resistance on September 23, but the bulls could not extend the recovery beyond $600.
A positive sign in favor of the bulls is that they did not allow the price to close below the strong support at $530. If the price continues to move higher and breaks above $600, this will signal the continuation of the uptrend. The TAO/USDT pair could advance to $640 and then $720.
On the other hand, if the price breaks below $530, the next support level is at $489. Buyers are expected to defend this zone strongly. Bears will come back into the game if they push the pair below the 20-day EMA.
The bulls are defending the $489 to $535 zone strongly, indicating buying on dips. If the price stays above $563, the pair could retest $600. This is a key resistance level that the bears need to defend as a break above this level could start the next leg up.
Conversely, if the price declines and breaks below $489, this will indicate the start of a deeper correction. The pair could fall to $450 and then $400. The deeper the decline, the longer it will take for the uptrend to continue.
RUNE Technical Analysis
THORChain (RUNE) rose and closed above the overhead resistance at $5 on September 26, indicating the start of a new rally.
The upward sloping moving averages and the RSI near the overbought zone indicate that buyers are in control. A slight decline to the breakout level of $5 cannot be ruled out. If the price rebounds from $5 with strength, the bullish outlook above $6 will improve. After that, the RUNE/USDT pair may rise to $7.
If the bears want to stall the gains, they will have to pull the price below the 20-day EMA ($4.66). Such a move would suggest that the breakout might be a bull trap. The pair could then slide to the 50-day SMA ($4.11).
The pair has fallen back to the 20-day EMA on the 4-hour chart. If this support level is broken, the correction could reach the breakout level of $5. Buyers are expected to defend the $5 support level strongly.
On the other hand, if the price declines and breaks below $5, it would indicate that the bulls are quickly booking profits. That could start a deep correction towards the next important support level at $4.40.
SEI Technical Analysis
Sei (SEI) rose above the overhead resistance at $0.43 on September 24, suggesting that the bulls are attempting a comeback.
The 20-day EMA ($0.38) has started to turn up and the RSI is in the overbought zone, suggesting an advantage to the buyers. If the rebound from $0.43 sustains, it will signal that the bulls have flipped this level into support. That will increase the possibility of a continuation of the upward momentum. The SEI/USDT pair could surge to $0.60 and then $0.70.
Conversely, if the $0.43 support breaks, the pair could drop to the 20-day EMA. The bears will have to drop and sustain the price below the 20-day EMA to regain control.
The pair bounced off the $0.43 support, indicating that sentiment has turned positive and traders are buying on dips. If the price sustains above $0.46, the bulls will attempt to retest the overhead resistance at $0.50. A breakout and close above this level will indicate a continuation of the uptrend.
This bullish view will be invalidated in the near term if the price turns down and breaks below the 50 SMA. The pair could then drop to $0.36 where buyers are expected to step in.
