Trader sentiment has turned bearish following Bitcoin’s (BTC) 11% slump this week. Although Bitcoin is taking support near $25,000, several analysts are factoring in another leg down toward the crucial $20,000 level.
The weakness is not limited to the cryptocurrency markets alone. United States equities markets also witnessed a losing week. The S&P 500 Index fell 2.1%, and the Nasdaq Composite dropped about 2.6%, with both indexes recording a three-week losing streak. This suggests that traders are in a risk-off mode in the near term.
Crypto market data daily view. Source: Coin360
The fall in Bitcoin dragged several altcoins lower, indicating a broad-based sell-off. However, among the sea of red, there are a few altcoins that have stood out either by bouncing off strong support levels or by continuing their up-move.
Let’s study the charts of the top-five cryptocurrencies that may buck the negative trend and stay positive over the next few days.
Bitcoin price analysis
Bitcoin has been range-bound between $24,800 and $31,000 for the past several days. After failing to sustain above the resistance, the price has dipped near the support of the range.
BTC/USDT daily chart. Source: TradingView
The fall of the past few days has pulled the relative strength index (RSI) into the oversold territory, indicating that a recovery may be around the corner. If the price rises from the current level, it could reach the 20-day exponential moving average ($28,309). The bears are likely to sell the rallies to this level.
If the price turns down from the 20-day EMA, the BTC/USDT pair may again drop to the crucial support at $24,800. If this support gives way, the pair may start a descent to $20,000.
On the upside, a break and close above the 20-day EMA will indicate that the pair may extend its stay inside the range for a few more days. The bulls will have to push and sustain the price above $31,000 to start a new up-move, but that looks a little far-fetched at the moment.
BTC/USDT 4-hour chart. Source: TradingView
Both moving averages are sloping down and the RSI is in the oversold territory on the four-hour chart, indicating that bears…