Bitcoin (BTC) has been trading in a tight range for the past three days, showing resilience even as the S&P 500 fell for four consecutive days. This suggests that cryptocurrency traders are not panicking and rushing to sell their holdings, which is a positive sign. In fact, data from Glassnode shows that short-term holders of Bitcoin, who have held their coins for 155 days or less, hold the least amount of supply in more than a decade.
The uncertainty surrounding Bitcoin’s next move may be keeping traders on the sidelines, resulting in subdued price action for several large altcoins. However, there are also signs of recovery in some altcoins, indicating that the overall sentiment in the market is not entirely negative.
Looking at the charts, Bitcoin’s price has managed to hold above the 20-day exponential moving average ($26,523), but a strong rebound has yet to materialize. The 20-day EMA is currently flat and the relative strength index (RSI) is near the midpoint, indicating a balance between buyers and sellers. A break below the 20-day EMA could tilt the advantage in favor of the bears, while a climb above the 50-day simple moving average ($26,948) would signal a return of buyers.
For Chainlink (LINK), there is potential for a trend change in the near term. The moving averages have formed a bullish crossover and the RSI is in positive territory, suggesting that buyers have the upper hand. If the price rebounds off the 20-day EMA ($6.55), it could indicate a change in sentiment from selling on rallies to buying on dips. The upside targets to watch are $8 and $8.50.
Maker (MKR) turned down from the overhead resistance at $1,370, indicating that bears are trying to defend this level. The 20-day EMA ($1,226) will serve as a support to watch for on the downside. A rebound from this level would suggest that buyers are still interested, while a break below the 20-day EMA could keep the price range-bound between $980 and $1,370.
Arbitrum (ARB) is currently in a downtrend, with the bears selling on rallies to the 20-day EMA ($0.85). However, the bulls have not ceded much ground, indicating that they are holding on to their positions in anticipation of a move higher. A break above the 20-day EMA could signal the start of a sustained recovery, with upside targets at the 50-day SMA ($0.95) and $1.04.
Theta Network (THETA) recently broke above the 20-day EMA ($0.61), suggesting a potential comeback for the bulls. The 20-day EMA will now serve as an important support level to watch for. If the price turns up from the current level and climbs above the 50-day SMA, it could lead to a retest of $0.70. However, a breakdown below the 20-day EMA would open the door for a potential retest of $0.57.
In conclusion, while Bitcoin has been trading in a tight range, showing resilience amid market volatility, several altcoins are showing signs of recovery. It remains to be seen whether Bitcoin can break out of its current range and act as a catalyst for an altcoin rally. Traders should conduct their own research and exercise caution when making investment decisions.