Last week, the U.S. equities markets saw strong gains after a three-week decline, with the S&P 500 rising by 3.65% and the Nasdaq Composite surging by 4.14%. Following this trend, Bitcoin (BTC) also experienced a notable comeback with gains of over 7% by the end of the week.
The recent rally in both stock and crypto markets indicates a potential bottoming formation, although it might be premature to anticipate a bullish trend. The equities markets are awaiting crucial events such as the U.S. inflation data release on Sept. 13 and the Federal Reserve meeting on Sept. 20-21, which could impact market sentiment.
In addition to the equities markets, the crypto space has its own significant events to watch for, including Ethereum’s Merge and Cardano’s (ADA) Vasil hard fork in the coming days, which might lead to increased volatility in various cryptocurrencies.
Despite the volatile markets creating risks, they also present short-term trading opportunities for agile traders. Let’s analyze the charts of five cryptocurrencies showing potential in the near future.
BTC/USDT
Bitcoin broke above the 20-day exponential moving average ($20,662) on Sept. 9, signaling a potential decrease in selling pressure. Although encountering resistance at the 50-day simple moving average ($21,946), the bulls have not relinquished much ground, with the 20-day EMA sloping upwards and the relative strength index (RSI) in positive territory, indicating a bullish bias. A move above the 50-day SMA could propel the BTC/USDT pair towards the strong resistance at $25,211. On the downside, a breach below the 20-day EMA may lead to a drop to $18,626.
ATOM/USDT
Cosmos (ATOM) breached the overhead resistance at $13.45 on Sept. 8, suggesting demand at higher levels. While facing resistance at $20.30, a pullback below $13.45 could indicate a potential bear trap. A bounce from current levels or the $13.45 support would indicate bullish strength, with a move above $17.20 possibly leading to a rally towards $20.30.
APE/USDT
ApeCoin (APE) showed strong buying interest near the $4.17 support, signaling a potential end to the corrective phase. Breaking above the 20-day EMA, the APE/USDT pair formed an inside-day Doji candlestick pattern before rallying to the 50-day SMA ($5.85). A rebound off the 20-day EMA could see a move towards $7.80, while a drop below the EMA might lead to a decline to $4.17.
CHZ/USDT
Chiliz (CHZ) breached the 20-day EMA ($0.20) on Sept. 9, indicating a possible end to the correction phase. Facing resistance near $0.23 and support at $0.20, a move above the resistance could lead to a rally towards $0.26. Alternatively, a drop below $0.20 may pull the price towards the 50-day SMA ($0.18).
QNT/USDT
Quant (QNT) held strong support at $87.60, hinting at positive sentiment and buying interest. Breaking above the 20-day EMA ($100), the pair faced resistance at the 50-day SMA ($105) before surging above it on Sept. 11. Sustaining higher levels could propel the pair towards $117 and potentially to $124 and $130. A drop below the 20-day EMA may push the price back to the strong support at $87.60.
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