Bitcoin price strength extends to AVAX, SUI, TAO and AAVE — Are altcoins back?

Bitcoin (BTC) dipped below $63,000 on Sept. 22, indicating possible profit booking by short-term traders. Some analysts believe that Bitcoin could enter a minor consolidation before attacking the crucial overhead resistance at $65,000.

While short-term uncertainties remain, analysts are bullish for the long term. Standard Chartered global head of digital assets research Geoff Kendrick expects Bitcoin to reach $200,000 by the end of 2025. Kendrick anticipates the positive inflows into Bitcoin exchange-traded funds, a marginal uptick in inflation, and the likely removal of Staff Accounting Bulletin-121 — a rule effectively preventing banks from holding digital assets for clients — to be the major triggers for Bitcoin’s rally.

Bitcoin’s recovery has boosted buying in select altcoins, which have broken above their respective overhead resistance levels. If Bitcoin consolidates around the current levels, traders may shift their focus to altcoins.

Could Bitcoin bulls prevent a collapse below the $61,200 support? Will altcoins start a rally over the next few days? Let’s study the top 5 cryptocurrencies that look strong on the charts.

Bitcoin price analysis

Bitcoin’s recovery is facing profit booking near $64,000, indicating that the bulls are nervous about continuing their purchases close to the overhead resistance of $65,000.

The BTC/USDT pair could correct to the 20-day exponential moving average ($60,232), an essential level to watch out for. If the price rebounds off the 20-day EMA, it will improve the prospects of a rally above $65,000. The pair could then soar to the stiff overhead resistance of $70,000.

Conversely, if the price continues lower and breaks below the moving averages, it will signal that the markets have rejected the higher levels. The pair could then plunge to the support line.

The pair has pulled back to the 20-EMA on the 4-hour chart. If this support cracks, the pair may slump to the 50-SMA. Buyers are expected to aggressively buy the dips to $61,200. If the price rebounds off this level, it will signal that the bulls have flipped the $61,200 level into support. The pair will then again try to pierce the $65,000 resistance.

If bears want to prevent the upside, they will have to drag and retain the price below the 50-SMA. If they do that, the pair could descend to $59,000 and then to $57,500.

Avalanche price analysis

Avalanche (AVAX) broke and closed above the descending channel pattern on Sept.19, indicating a potential trend change.

The bears are trying to halt the recovery at the breakdown level of $29. If the price turns down from the current level but finds support at the 20-day EMA ($24.81), it will suggest that the bulls are trying to take control. The AVAX/USDT pair is likely to pick up momentum above $29 and jump to $33.

On the contrary, if the price turns down and breaks below the moving averages, it will suggest that the pair may remain range-bound between $19.50 and $29 for a while.

The pair turned down from the overhead resistance at $29 and reached the 20-EMA. This is a crucial level for the bulls to defend if they want to keep the positive momentum intact. A solid bounce off the 20-EMA could result in a retest of the overhead resistance.

Alternatively, if the price remains below the 20-EMA, it will suggest that the bulls are losing their grip. The pair could then decline to the 50-SMA. Buyers are expected to vigorously defend the moving averages. 

Sui price analysis

The bulls pushed Sui (SUI) above the $1.44 overhead resistance on Sept. 20, but higher levels are attracting selling.

The SUI/USDT pair is witnessing a tough battle near the $1.44 level. If the price turns up from the current level and rises above $1.58, it will signal that the bulls have flipped the $1.44 level into support. That will improve the prospects of a rally to $1.72.

Contrarily, if the price skids and maintains below $1.44, the correction could reach the 50% Fibonacci retracement level of $1.29. Below this level, the pair could plummet to the 20-day EMA ($1.15).

The 4-hour chart shows that the bulls are trying to propel the price above the $1.58 resistance. If they succeed, it will signal the resumption of the uptrend toward the next target objective of $1.72.

Contrary to this assumption, if the bears tug the price below the 20-EMA, it will signal the start of a deeper correction to $1.30. This is a crucial support to watch out for because a break below it may result in a drop to $1.18.

Related: Is Bitcoin set for 400% gains against gold? Veteran analyst weighs in

Bittensor price analysis

Bittensor (TAO) broke and closed above the $361 overhead resistance on Sept. 19, completing a triple bottom pattern. This setup has a target objective of $517.

The rally may face selling near $490 and again at $530, but if the bulls do not give up much ground, the TAO/USDT pair could continue its up move. If the $530 level is scaled, the pair may surge to $640.

The first support on the downside is the 38.2% Fibonacci retracement level of $401, and below that, the 50% retracement level of $378. A break below $378 could retest the breakout level of $361, where the bulls and the bears are expected to battle it out for supremacy.

The pair is facing selling near $480. The bears will try to pull the price down to the 20-EMA. If the price bounces off the 20-EMA, the bulls will again try to drive the pair to $490 and thereafter to $530.

Contrarily, if the price turns down and breaks below the 20-EMA, it will suggest that the bulls are booking profits. That could open the doors for a fall to the breakout level of $361, where the bulls are expected to step in.

Aave price analysis

Aave (AAVE) closed above the $154 overhead resistance on Sept. 21, but the bulls are struggling to sustain the higher levels.

The bears will try to yank the price back below the breakout level of $154. If they do that, the AAVE/USDT pair could slide to the 20-day EMA ($142). A strong bounce off the 20-day EMA will suggest that the sentiment remains positive. The bulls will then make another attempt to clear the overhead hurdle and push the pair to $180 and then to $200.

This optimistic view will be negated in the near term if the price breaks and sustains below the 20-day EMA. That could sink the pair to the 50-day SMA ($125).

The up move is facing selling near $160 on the 4-hour chart, but the pullback is expected to find support at the 20-EMA. If the price rebounds off the 20-EMA with strength, it will increase the likelihood of the continuation of the uptrend. The pair may then travel to $180.

Instead, if the price turns down and breaks below the 20-EMA, it will suggest the start of a deeper correction to the 50-SMA. This is an important level for the bulls to defend because a break below it may sink the pair to $134.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Source