Crypto traders turn to 4 altcoins amid Bitcoin price stagnation.

The Resilience of Bitcoin in the Face of Market Volatility

Bitcoin (BTC), the world’s largest cryptocurrency, has been trading in a tight range for the past three days, while the S&P 500 has fallen for the last four days of the week. This contrasting performance is a positive sign for the cryptocurrency market, as it indicates that traders are not panicking and rushing to exit their Bitcoin positions.

Bitcoin’s supply seems to be gradually shifting to stronger hands, according to insights from analyst CryptoCon, who cited Glassnode data. Short-term holders (STHs), or investors who have held their coins for 155 days or less, currently hold the least amount of Bitcoin supply in more than a decade. This suggests that long-term and more confident holders may be accumulating Bitcoin, which bodes well for its future price stability.

In the short term, the uncertainty regarding Bitcoin’s next directional move may have contributed to the subdued price action in several large altcoins. However, it is not all negative across the board, as several altcoins are showing signs of a recovery in the near term. This raises the question: Could Bitcoin shake off its slumber and start a bullish move? And if it does, could that act as a catalyst for an altcoin rally?

Bitcoin Price Analysis

The current price action of Bitcoin indicates a lack of demand at higher levels. The price has managed to sustain above the 20-day exponential moving average ($26,523), but a strong rebound has yet to materialize. The flattish 20-day EMA and the relative strength index (RSI) near the midpoint suggest a balance between buyers and sellers. A break below the 20-day EMA could tilt the advantage in favor of the bears, potentially leading to a descent towards the formidable support at $24,800. On the other hand, if the price rises above the 50-day simple moving average ($26,948), it will signal the return of buyers’ confidence and could pave the way for a rally towards the overhead resistance at $28,143.

Looking at the 4-hour chart, bears have been unable to start a downward move despite Bitcoin trading below the moving averages. This suggests that selling pressure is drying up at lower levels, indicating the bulls’ resolve to hold their positions. If buyers manage to propel the price above the moving averages, the pair could rally towards $27,400 and subsequently $28,143. However, if bears gain control and sustain the price below $26,200, it could trigger a further decline towards $25,750 and eventually the $24,800 support.

Chainlink’s Potential Trend Change

Chainlink (LINK) has recently surged above the downtrend line, signaling a potential trend change in the near term. The moving averages have completed a bullish crossover, and the RSI is in positive territory, indicating that buyers are in control. On any correction, strong support is likely to be found at the 20-day EMA ($6.55), and a rebound from this level would suggest a shift in sentiment from selling on rallies to buying on dips. With the moving averages sloping up on the 4-hour chart and the RSI in the positive zone, the overall sentiment for Chainlink appears positive. In this case, it is crucial for bears to sink and sustain the price below the 20-day EMA to prevent the up-move and maintain control.

Maker’s Ongoing Battle with Resistance

Maker (MKR) has encountered resistance at the overhead level of $1,370, indicating the bears’ effort to defend this level. The 20-day EMA ($1,226) holds as a support level to watch for on the downside. A rebound off this level would suggest continued buying interest at lower levels, and the bulls would then make another attempt to drive the price above the overhead resistance. If successful, the MKR/USDT pair could accelerate towards $1,759. Conversely, a break below the 20-day EMA would indicate weakened bullish momentum, likely leading to a range-bound consolidation between $980 and $1,370. The 4-hour chart provides further insight into the situation, with the moving averages flattening out and the RSI near the midpoint, indicating a balance between supply and demand. Buyers’ ability to push the price above $1,306 would signal renewed bullish momentum, while a break below $1,264 could prompt further selling and potentially favor the bears.

Arbitrum’s Downtrend Battle

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 conceded much ground, which suggests their determination to hold onto their positions in anticipation of a move higher. The RSI rising above 40 indicates a gradual shift in momentum towards the bulls. If buyers manage to push the price above the 20-day EMA, it would mark the start of a sustained recovery, potentially leading to a rally towards the 50-day SMA ($0.95) and $1.04. On the downside, support is found at $0.80 and $0.78. Bears would need to drive the price below this zone to retest the support near $0.74, and a break below that level would indicate a resumption of the downtrend.

Theta Network’s Comeback Attempt

Theta Network (THETA) has made a notable comeback, soaring above the 20-day EMA ($0.61), a signal that the bulls are absorbing supply and attempting a comeback. Although the price has been pulled below the 50-day SMA ($0.64) by bears, the bulls are expected to defend the 20-day EMA. A climb above the 50-day SMA would enhance the prospects of a retest of $0.70, presenting an important level to watch for. Scaling this level could potentially propel the THETA/USDT pair towards $0.76. However, a dip below the 20-day EMA would open the door to a potential retest of $0.57.

In summary, despite the recent market volatility, Bitcoin has shown resilience by trading within a tight range. The shift in Bitcoin supply to stronger hands suggests a positive outlook for its future price stability. While Bitcoin’s short-term direction remains uncertain, several altcoins are showing signs of a potential recovery. The price actions of Chainlink, Maker, Arbitrum, and Theta Network offer valuable insights into their respective trends. As the cryptocurrency market evolves, traders and investors will closely monitor these key indicators to determine the market’s next moves.

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