Stock markets in the United States rose sharply last week, ending a three-week loss streak.The S&P 500 rose 3.65% last week, while the Nasdaq Composite rose 4.14%.Bitcoin (BTC) continued its close correlation with US stock markets, also making a strong comeback, trying to close out the week with gains of over 7%.
The sharp rally in the stock and cryptocurrency markets is showing signs of a bottoming formation, but it may be too early to predict the start of another bull move.Equity markets may remain on the brink ahead of the release of US inflation data on September 13 and the Federal Reserve meeting on September 20-21.Daily display of crypto market data.Source: Coin360
In addition to taking cues from the stock markets, the cryptocurrency space has its own significant events to look forward to.Both the Ethereum’s Merge and Cardano’s (ADA) Vasil hard fork planned in the coming days could increase volatility in several cryptocurrencies.
While choppy markets increase risk, they can provide short-term trading opportunities to nimble traders.
Let’s study the charts of five cryptocurrencies that look interesting in the short term.BTC/USDT
Bitcoin surged above the 20-day exponential moving average ($20,662) on Sept.9, providing the first indication that selling pressures could ease.The bears are trying to slow the recovery on the 50-day moving average ($21,946), but a positive sign is that the bulls have not given up much ground.BTC/USDT daily chart.Source: TradingView
The 20-day EMA is starting to rise gradually and the Relative Strength Index (RSI) is in the positive region, indicating that the path of least resistance is upward.If bulls push the price above the 50-day SMA, the BTC/USDT pair could rise towards the stiff overhead resistance of $25,211.
The bears are expected to defend this level with vigor.
Another possibility is that the price will fall from the 50-day SMA.
If that happens, the pair could fall to the 20-day EMA.This is an important level to watch as a break and close below it could open the doors for a drop to $18,626.Alternatively, if the price bounces off the 20-day EMA, it increases the likelihood of a break above the 50-day SMA.
BTC/USDT 4-hour chart.Source: TradingView
The pair gained momentum after it broke above the $19,520 breakout level.The sharp rally pushed the RSI into overbought territory, suggesting a minor consolidation or correction.
Buyers face a tough challenge near $22,000, but they haven’t ceded ground to the bears.This suggests that every little dip is bought.
If bulls push the price above $22,000, the pair could quickly rise to $23,500, where bears could try again to stop the upward move.
Contrary to this assumption, if the price drops and moves below the 20 EMA, the pair could fall as low as $20,576.A breach below this level suggests the pair could consolidate for some time in a wide range between $22,000 and $18,626.ATOM/USDT
Cosmos (ATOM) broke above the $13.45 overhead resistance on Sept.
8, indicating higher demand.The next solid resistance is at $20.30, leaving room for a rally.ATOM/USDT daily chart.Source: TradingView
Before then, however, the bears will try to push the price below the $13.45 breakout level.This is an important level to watch as a break and close below it indicates that the recent breakout may have been a bulltrap.
On the other hand, if the price rises from its current level or bounces back from $13.45, it suggests that bulls are in control and are buying at every dip.
If bulls propel the price above $17.20, the upward move could pick up momentum and reach $20.30.ATOM/USDT 4-hour chart.Source: TradingView
The 4-hour chart shows the ATOM/USDT pair rising after breaking above overhead resistance at $13.45.That pushed the RSI deep into overbought territory and started a correction, but a positive sign is that the bulls haven’t given up much ground.
If the price bounces back from the current level, the probability of a break above $17.20 increases.If that happens, the upward move could continue and the pair could move towards USD 20.30.
This positive picture could be negated in the near term if the price remains lower and dips below the 20-EMA.
If that happens, the pair could fall towards the 50% Fibonacci retracement level of $14.36.
APE/USDT
ApeCoin (APE) recovered strongly from support at $4.17, pointing to aggressive buying at lower levels.This suggests that the correction phase could end, making it an interesting candidate for the near term.APE/USDT daily chart.Source: TradingView
Buyers pushed the price above the 20-day EMA ($5) on September 9, and the APE/USDT pair formed an inside-day Doji candlestick pattern on September 10.This uncertainty resolved on September 11 with a strong rally to the 50-day SMA ($5.85).The bears may try to delay the recovery at this level.
If the price falls from current levels but bounces back from the 20-day EMA, it suggests that sentiment has turned positive and traders are buying on dips.
The bulls will then try again to push the price above the 50-day SMA.If they do, the pair could rise towards the USD 7.80 overhead resistance.
This positive image could be negated in the near term if the price falls and moves below the 20-day EMA.
In that case, the pair could drop to $4.17.APE/USDT 4-hour chart.Source: TradingView
The 20-EMA on the 4-hour chart is beginning to rise and the RSI has risen in overbought territory.This indicates that bulls have the upper hand, but a short-term pullback is possible.
If the price falls from current levels but bounces back from $5.30, it suggests strong demand at lower levels.
The bulls will then make another attempt to push the price above USD 5.83 and extend the recovery to USD 6.44.
Alternatively, if the price falls and moves below the 20 EMA, the advantage may tip in favor of the bears.
Related: Terra back from the dead? LUNA price up 300% in September CHZ/USDT
Chiliz (CHZ) broke above the 20-day EMA ($0.20) on Sept.
9, providing the first indication that the corrective phase may be coming to an end.Hence, this token made it to the list.CHZ/USDT daily chart.Source: TradingView
The bears tried to push the price back below the 20-day EMA on September 10, but the bulls held out.Buyers are trying to push the price towards the USD 0.26 overhead resistance, but the upward move may face strong headwinds near USD 0.23.
If the price falls but does not fall below the 20-day EMA, it increases the likelihood of a rally to $0.26.Contrary to this assumption, if the price falls and falls below $0.20, it suggests that bears are active at higher levels.That could pull the price towards the 50-day SMA ($0.18).
CHZ/USDT 4-hour chart.Source: TradingView
The 4-hour chart shows that the bears are defending the downward trendline.If the price falls from current levels but bounces off the moving averages, it suggests that bulls are trying to make a comeback.
Buyers will then try again to move the price above the downward trendline.If they succeed, the pair could begin its march north toward $0.23 and later toward $0.26.
Alternatively, if the price falls below $0.20, it suggests that the pair may remain within the falling wedge pattern.
That could push the price down to $0.18.QNT/USDT
Quant (QNT) did not move below the strong support at $87.60 indicating that sentiment is positive and bulls are buying on dips.That is the reason for his choice.QNT/USDT daily chart.Source: TradingView
The sharp rebound from $87.60 broke above the 20-day EMA ($100) on Sept.8, providing the first indication that the corrective phase may be coming to an end.
The bears presented a strong challenge near the 50-day SMA ($105), but failed to push the price back below the 20-day EMA.
This indicated that sentiment had turned positive and bulls are buying on dips.Buyers pushed the QNT/USDT pair above the 50-day SMA on September 11.If the bulls maintain the higher levels, the pair could climb as high as $117 and then $124.A breach above this level could open the doors for a rally to $130.
This bullish opinion could become invalid if the price falls and moves below the 20-day EMA.
If that happens, the pair could fall towards the strong support at $87.60.QNT/USDT 4-hour chart.
Source: TradingView
The 4-hour chart shows the pair rebounding sharply from the support at $87.60.The bears presented a strong challenge near $108, but a positive sign is that the bulls have bought the dip towards the 20 EMA.This indicates that traders see dips as a buying opportunity.
Buyers resume the recovery by pushing the price above the overhead resistance at $108.The pair could rise to $113 and later to $117.Conversely, if the price drops and dips below the 20 EMA, the pair could fall towards the 50 SMA.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.Every investment and trading move carries risks, you should do your own research when making a decision.Related .
