Bitcoin Price Strength Extends to AVAX, SUI, TAO, AAVE. Are Altcoins Back?

Bitcoin (BTC) fell below $63,000 on September 22, suggesting a potential profit-taking opportunity for short-term traders. Some analysts believe that Bitcoin could enter a minor consolidation before striking the critical overhead resistance of $65,000.

While there is some short-term uncertainty, analysts are bullish on the long term. Geoff Kendrick, global head of digital asset research at Standard Chartered, expects Bitcoin to hit $200,000 by the end of 2025. Kendrick sees positive inflows into Bitcoin exchange-traded funds (ETFs), a modest increase in inflation, and the repeal of Staff Accounting Bulletin-121, a rule that effectively prevented banks from holding digital assets for their clients, as key factors behind the Bitcoin rally.

Bitcoin’s recovery has prompted buying of certain altcoins, each of which has broken through their respective overhead resistance levels. If Bitcoin consolidates around current levels, traders may shift their focus to altcoins.

Can Bitcoin bulls prevent a plunge below the $61,200 support? Will altcoins begin a rally in the coming days? Let’s take a look at the top five cryptocurrencies showing strength on the charts.

Bitcoin Price Analysis

Bitcoin’s recovery is facing profit-taking near $64,000, which shows that bulls are nervous about continuing to buy near the $65,000 resistance level.

The BTC/USDT pair may correct to the 20-day exponential moving average ($60,232), which is a crucial level to watch. If the price bounces off the 20-day EMA, the prospects for a rally above $65,000 will improve. The pair could then surge to the strong overhead resistance of $70,000.

Conversely, if the price continues to decline and falls below the moving average, it is a signal that the market has rejected the higher levels. Then, the pair may plunge to the support level.

The pair has pulled back to the 20-EMA on the 4-hour chart. If this support is broken, the pair could crash to the 50-SMA. Buyers are expected to aggressively buy the dip to $61,200. If the price bounces from this level, it will signal that the bulls have turned the $61,200 level into a support. The pair will then attempt to break the $65,000 resistance again.

If the bears want to stop the upside, they need to pull the price down and keep it below the 50-SMA. This could lead the pair to $59,000 and then $57,500.

Avalanche Price Analysis

Avalanche (AVAX) broke out of a descending channel pattern and closed above it on September 19, indicating a potential trend change.

The bears are trying to stop the recovery at the $29 level. If the price declines from current levels 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 gain momentum above $29 and jump to $33.

On the other hand, if the price declines and breaks below the moving average, the pair is likely to remain range bound between $19.50 and $29 for some time.

The pair has fallen from overhead resistance at $29 and reached the 20-EMA, which is a crucial level for bulls to defend if they want to maintain positive momentum. A solid bounce from the 20-EMA could lead to a retest of overhead resistance.

Or if the price stays below the 20-EMA, it suggests that the bulls are losing strength. Then the pair may fall to the 50-SMA. Buyers are expected to defend the moving averages strongly.

Sui price analysis

On September 20, bulls pushed SUI above the resistance level of $1.44, but selling is taking place above that level.

The SUI/USDT pair is witnessing a fierce competition near the $1.44 level. If the price rises from the current level and goes above $1.58, it will be a signal that the bulls have turned the $1.44 level into a support line. This will improve the prospects for a rally to $1.72.

Conversely, if the price declines and holds below $1.44, a correction may reach the 50% Fibonacci correction level of $1.29. A drop below this level could send the pair crashing to the 20-day EMA ($1.15).

The 4-hour chart shows that bulls are trying to push the price above the $1.58 resistance level. If successful, it will signal a resumption of the uptrend towards the next target of $1.72.

Contrary to this assumption, if the bears were to push the price below the 20-EMA, it would signal the start of a deeper correction towards $1.30. This is an important support level to watch out for, as a drop below it could lead to a drop to $1.18.

relevant: Is Bitcoin Expected to Rise 400% Against Gold? Veteran Analyst Gives His Opinion

Bittensor Price Analysis

Vitensor (TAO) closed above the $361 overhead resistance level on September 19, completing a triple bottom pattern. This setup has a target of $517.

The rally could face a sell-off near $490 and again at $530, but if the bulls don’t give up much ground, the TAO/USDT pair could continue its uptrend. If the $530 level extends, the pair could surge to $640.

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

The pair is facing a selloff near $480. The bears will try to push the price down to the 20-EMA. If the price bounces off the 20-EMA, the bulls will try to push the pair down again to $490 and then to $530.

Conversely, if the price declines and breaks below the 20-EMA, it suggests that the bulls are taking profits. This could open the door for a drop to $361, the breakout level where bulls are expected to intervene.

Aave Price Analysis

Aave (AAVE) closed above the $154 resistance level on September 21, but bulls are struggling to maintain higher levels.

The bears will try to push the price below the breakout level of $154. If they do, the AAVE/USDT pair could fall to the 20-day EMA ($142). A strong bounce from the 20-day EMA would indicate that sentiment is still positive. Then the bulls will try again to push the pair above the overhead hurdles and to $180 and then $200.

This bullish outlook will be invalidated in the short term if the price breaks the 20-day EMA and remains below it. In that case, the pair could fall to the 50-day SMA ($125).

The uptrend is facing a selloff near $160 on the 4-hour chart, but the pullback is expected to find support at the 20-EMA. If the price bounces strongly from the 20-EMA, the uptrend is likely to continue. Then, the pair can move to $180.

Instead, if the price declines and breaks below the 20-EMA, it suggests a deeper correction to the 50-SMA. This is a crucial level for the bulls to defend, as a drop below it could see the pair fall to $134.