Will Bitcoin ‘Uptober’ Bring Profits For MKR, AAVE, RUNE And INJ?

After rising nearly 80% in the first two quarters of 2023, bitcoin (BTC) fell 11% in the third quarter ended September. However, there is a silver lining for the bulls as they managed a positive monthly close in September, their first since 2016.

Buyers will try to build on this momentum in October, which has a record high. According to CoinGlass data, only 2014 and 2018 have produced negative monthly returns in October since 2013. There is no guarantee that history will repeat itself, but the data can be used as a good starting point for formulating strategies by traders.

Recent strength in Bitcoin has fueled interest in altcoins. Select altcoins are trying to break above their respective resistance levels, signaling the start of a strong recovery. Bitcoin may extend its rally to $28,000, but the momentum may increase further.

Not all altcoins are expected to explode higher. Cryptocurrencies that are showing strength could boost the recovery. Let's study the charts of top-5 cryptocurrencies that are likely to outperform in the near future.

Bitcoin price analysis

Bitcoin has been trading above its moving average since September 28, which is a positive sign. This shows that the advantage is slowly tilting towards buyers.

The bears are trying to disrupt the rally around $27,500 but the bulls are not giving up much. This shows that every small dip is being bought. This adds up to more than $27,500 in vacation opportunities. The BTC/USDT pair could retest the critical profit resistance at $28,143. This level may again attract aggressive selling by the bears.

If the price declines significantly from $28,143, the pair could retest the 20-day exponential moving average ($26,630). A strong breakout at this level could start the price above $28,143. The pair may subsequently rise to $30,000.

This bearish view will be rejected in the near term if the price declines and dips below the strong support at $26,000.

The 4-hour chart shows that the pair is taking support at the 20-EMA. This indicates that the bulls are trying to take charge. However, the bears will not give up easily and will try to stop the recovery in the zone between 27,300 and 27,500 dollars. The sellers need to break below the 20-EMA to maintain control.

Conversely, if the bulls pierce the overhead resistance at $27,500, it will pave the way for a rally to $28,143. This phase may witness a fierce battle between buyers and sellers.

Producer price analysis

Maker (MKR) broke above $1,370 to close on September 26, signaling the start of a new uptrend. Traders buy on dips when the asset is at highs.

The bears tried to stop the move that started at $1,600 but the bulls bought a dip of $1,432. This shows that the sentiment remains positive and lower levels are being bought. If bulls enter the price above $1,600, the MKR/USDT pair may rally to $1,760 and then run to $1,909.

Contrary to this assumption, if the price declines significantly and slips below $1,432, it may give room to retest the breakout level at $1,370. The bears need to break below this support to signal a possible upside.

The 4-hour chart shows that the bears are actively waiting for an overshoot resistance at $1,600. If bulls want to keep their chances alive, dips should be bought towards the 20-EMA.

If the price pulls back from the 20-EMA, buyers will again try to overcome the barrier at $1,600 and start the next leg of the uptrend. Alternatively, if the pair breaks below the 20-EMA, it could start a decline towards $1,432 and then towards the 50-simple moving average.

Aave price analysis

Aave (AAVE) is attempting to break above a long-term downtrend line, indicating a potential trend reversal. A retracement of the 20-day EMA ($62.42) on September 28 signals a shift from selling on rallies to buying on dips.

The bears will try to stop the recovery on the lower line, but if the bulls do not allow the price to return below the 20-day EMA, it will increase the break above it. The AAVE/USDT pair may then start moving higher towards $88.

The 20-day EMA is the necessary support to watch on the downside. If this level breaks, it suggests bears remain highly active. That could bring the price down to the 50-day SMA ($58.82).

Both the upward 20-EMA and the relative strength index (RSI) near the overbought zone indicate that the bulls are on orders. The rally may face selling at the lower line, but the bulls will try to hold the decline at the 20-EMA.

A strong rebound from the 20-EMA opens the door to a possible rally above the lower line. The pair can initially go up to $75 and then $80. To break the tempo, the bears need to sink and hold the price below the 20-EMA.

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THORChain price analysis

THORChain (RUNE) has reached the above resistance at $2 for the third time in the last few days. A resistance level makes the repeated attempt weaker.

If the bulls don't give much ground from the current level, it will improve the rally above $2. If that happens, the RUNE/USDT pair may rise first to $2.28 and then to $2.78.

If the price declines and falls below the moving average, this bullish view is worthless in the near term. Such a move will discourage the bulls and the pair may drop to $1.37.

The 4-hour chart shows that the bears are selling near the upper resistance of $2, but a positive sign is that the bulls did not allow the price to slide and stay below the 20-EMA. This shows that low standards are attracting buyers.

If bulls push the price above $2 and hold it, this will signal the start of a new uptrend. The pair could rise to $2.35. On the contrary, if the price declines and breaks below the 20-EMA, it indicates the beginning of a deep correction to the 50-SMA.

Injection cost analysis

Needle (INJ) has been swinging in a large range between $5.40 and $10 for the past several days. Price action within a region can be arbitrary and volatile, but trading opportunities can arise when boundaries are pushed apart.

The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls are dominant. The INJ/USDT pair may initially rise to $8.28 where the bears may form strong resistance. If the bulls overcome this barrier, the pair could accelerate to $10.

If the bears want to prevent the upside, they will prevent excessive resistance and quickly pull the price below the moving average. The pair can immediately retest support at $6.36.

Both moving averages are trending higher on the 4-hour chart and the RSI is in overbought territory, suggesting the bulls have a slight edge. The rally could reach $8.28 which could act as a strong barrier.

On the downside, the first support is at the 20-EMA. A breakout from this level indicates that the trend remains intact. Conversely, a break below the 20-EMA indicates that the bulls will take profits. That could push the price down to the 50-SMA.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.