4 coins that could turn bullish if Bitcoin price stabilizes
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Loading... - Benson Morara
- 29 Sep 2022
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Although Bitcoin marginally declined last week, there are still concerns of further downside, as there are strong indications its price could close below $15,000, according to analysts. This is because the actions of macroeconomic policies are still weighing down on riskier assets like the cryptocurrency market. While a new multi-year weekly close is a negative sign, sellers will have to sustain the lower levels or else it may turn out to be a bear trap. The price action of the next few days is likely to witness heightened volatility as both the bulls and the bears battle it out for supremacy.
In comparison, major United States stock market indices continued their decline last week as worsening macroeconomic conditions increased concerns of a global recession. The Dow Jones Industrial Average closed at its lowest level in 2022 and major indices recorded their fifth weekly close in the past six weeks.
Several investors miss opportunities to buy during sharp corrections because they try to catch the bottom. Traders should rather focus on the projects they like and accumulate the coins in a phased manner lasting a few weeks or months. All coins do not bottom at the same time, hence it is better to focus on individual cryptocurrencies that show strength.
Let’s look at five cryptocurrencies that have a high return potential and look interesting in the near term, according to Rakesh Upadhyay, technical analysis trader and contributor on Cointelegraph.
ATOM
ATOM, the native token of the Cosmos blockchain has been trading above the breakout level of $13.46 for the past several days, indicating that the sentiment remains positive and traders are buying on dips. The 20-day EMA ($14.22) has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If the price breaks above $15.26, the short-term advantage could tilt in favor of the buyers. ATOM’s price could then rise to $17.20. This level may again act as a resistance but if buyers thrust the price above it, the pair could pick up momentum and rise to $20.34 and later to $25. Contrary to this assumption, if the price turns down and breaks below the 50-day SMA ($12.90), the advantage could tilt in favor of the bears. The pair could then decline to $10.
ATOM has been stuck between $13.45 and $17 for some time. Buyers aggressively defended the support at $13.45 and are attempting to push the price above the 50-SMA. If they do that, the likelihood of a rally to $16 and thereafter to $17 increases. Conversely, if the price turns down from the current level and breaks below the 20-EMA, it will suggest that bears continue to sell on rallies. That could pull the price to the strong support at $13.45. The sellers will have to sink the pair below $13 to clear the path for a possible drop to $11.50. Read More…
