Top 5 cryptocurrencies to watch this week: BTC, DOT, UNI, LINK, XMR

Bitcoin (BTC) continues to trade around $55,000. Bitcoin’s sharp rally pushed its market dominance from 40.70% on September 12 to around 45% today. This shows that the strong recovery of cryptocurrencies is mainly led by Bitcoin.

This dramatic rise in Bitcoin has pushed the fear and greed indicator into the greed zone. While this indicator suggests that the market may rise rapidly in a short period of time, it is not necessarily a confirmed short-term top signal.

As highlighted by Cointelegraph market analyst Marcel Pechman, history has shown that traders who sell Bitcoin positions based on this metric alone may miss out on larger gains that precede pullbacks.

Will Bulls Extend Rally That Pushes Price Near Bitcoin's All-Time High? If this happens, altcoins could rise. Let’s examine the charts of the top five cryptocurrencies that are likely to remain strong in the short term.

BTC/USDT

Bitcoin surged above $52,920 on Oct. 6, and bulls have since maintained the price above the breakout level. This is a positive sign as it suggests that buyers are likely to hold on to their positions in anticipation of higher levels in the near term.

The moving averages have completed a golden cross and the relative strength index (RSI) is approaching overbought territory, suggesting the path of least resistance is to the upside.

If buyers push the price above $56,100, the uptrend could resume and BTC/USDT could rise to $60,000. Above this level, a retest of the all-time high of $64,854 is possible.

Contrary to this assumption, if the bears sink the price below $52,920, BTC/USDT could drop to the 20-day exponential moving average (EMA, $49,504). This is an important support level for bulls to hold on to, as a break below it could signal a short-term change in sentiment.

Then, BTC/USDT could drop to the 50-day simple moving average (SMA, $47,578), followed by $40,000.

The bulls are facing selling in the $55,750-$56,100 zone, but a positive sign is that the buyers did not let the price break below the 20-day EMA. This shows that the bulls are expected to break out of the high zone.

If this happens, BTC/USDT could resume its uptrend. The first sign of weakness will be a break and close below the 20-day EMA. The RSI is forming a negative divergence, suggesting that momentum may be weakening.

A break and close below the 20-day EMA could pull the price towards the 50-day SMA. A break below this support could start a deeper correction.

DOT/USDT

DOT has been gradually moving higher towards the overhead resistance at $38.77. The RSI has broken the downtrend line and the 20-day EMA ($32.15) has started to turn up, suggesting that it is in favor of buyers.

If the bulls push the price above $38.77, it will invalidate the head and shoulders pattern. The failure of a bearish move is a bullish sign, as it can trap aggressive shorts who then attempt to cover their positions, leading to a short squeeze.

Then, DOT/USDT could start heading towards $49.78. Alternatively, if the price turns down from current levels or overhead resistance and breaks below the moving averages, DOT/USDT could drop to $28.60.

A move up from this support could keep DOT/USDT range-bound for a few days. The bears will have to pull the price below the neckline to show their advantage.

Both moving averages are sloping up and the RSI is in positive territory, suggesting buyers are in control. DOT/USDT could drop to the 20-day EMA, which could act as a strong support. If the price turns up from this support, the bulls will attempt to push DOT/USDT to $38.77.

This level could once again act as a stiff resistance, but if the bulls do not give up much from this level, the probability of a break above this level increases.

Conversely, if the bears pull the price below the 20-day EMA, DOT/USDT could drop to the 50-day SMA. A break and close below this support could lead to a drop to $31 and then $29.

UNI/USDT

Uniswap (UNI) has been holding above the 20-day EMA (24.55) for the past few days, which suggests that the bulls are attempting to defend this support. However, the bears are in no mood to relax as they do not allow the price to rise above the neckline.

Buyers will have to push and close the price above the neckline to complete the reverse H&S pattern. The pattern target for this bullish move is $36.98, but the upside may not be linear as the bears will attempt to defend the $31.41 level.

The 20-day EMA is gradually rising and the RSI is just above the midpoint, suggesting that the bulls have a slight advantage. This advantage will be lost if the price breaks and closes below the 20-day EMA.

In this case, UNI/USDT could drop to $22. This level may act as a support, but if the bears sink the price below $22, UNI/USDT could extend its decline to $17.73.

The 4-hour chart shows that the price has been consolidating for a while in a tight range roughly between $24 and $26. Usually, such a narrow range leads to the initiation of a directional move.

If the buyers push and sustain the price above $26, the chances of a breakout of the neckline increase. This could start towards the next resistance at $30 and then $31.

On the other hand, if the price breaks below $24, the short-term trend could turn in favor of the bears. Then UNI/USDT could drop to $22.

LINK/USDT

LINK broke above the downtrend line on Oct. 1, but the bulls were not able to capitalize on the move. LINK has been stuck in a tight range between $25.20 and $26.19 for the past few days.

Both moving averages are flat and the RSI has been trading above the midpoint, suggesting a balance between supply and demand. If the price breaks out and closes above $28.19, the balance will tilt in favor of the buyers.

LINK/USDT could then rise to $32.11 before challenging the overhead resistance at $35.33.

Alternatively, a break below $25.20 could signal an oversupply. LINK/USDT could then drop to the support zone of $22 to $20.82.

The price turned down from the overhead resistance and the bears pulled the price below the moving averages. If sellers sustain lower levels, LINK/USDT could drop to support at $25.20. A break below this level could mean that the bears are back in power.

Conversely, if the price rises from current levels and moves back above the moving averages, it will indicate that traders are buying on dips. The bulls will have to push and sustain the price above $28.19 to signal their renewed dominance. Thereafter, LINK/USDT could rise to $32.11.

XMR/USDT

Monero (XMR) rallied above the 50-day SMA ($271) on Oct. 5 and reached the downtrend line on Oct. 6. The bears are aggressively defending the downtrend line for the past few days, but a small positive is that the bulls have not allowed the price to fall back below the 50-day SMA.

The 20-day EMA ($263) is gradually sloping up and the RSI is in the positive zone, suggesting a small advantage for buyers. A break and close above the psychological $300 level could open the door for an upside move to $325 and then to $339.70.

Conversely, if the price turns lower and breaks below the 20-day EMA, it will indicate that short-term traders may have sold their positions. This could drag the price down to $250 and then to $225.

The bulls have pushed the price above the downtrend line several times, but the bears have failed to keep the price above the downtrend line. The 20-day EMA has flattened out and the RSI is close to the median, indicating a balance between supply and demand.

Short-term bulls may be eager to exit if the price breaks below the 50-day SMA. This could drag the price down to $260, followed by $250.

Conversely, if the bulls push the price above $286.8, XMR/USDT could rise to $296.8. If the bulls push the price above this resistance level, the bullish momentum could pick up.