Top 5 cryptocurrencies to watch this week: BTC, ADA, UNI, LINK, CHZ

cointelegraph.com:

The S&P 500 rose for the fourth successive week as investors cheered on signs that inflation may have peaked. Bitcoin (BTC) and select altcoins also extended their recovery, suggesting that investors are increasing their exposure to risk assets.

A similar trend has played out in the cryptocurrency markets. Altcoins, led by Ether (ETH), have outperformed Bitcoin after clarity on Ethereum’s Merge, according to analysts at Glassnode.

However, trading firm QCP Capital is cautious about the momentum in the altcoin market. They highlighted that the open interest on Ether options had surged to $8 billion, exceeding Bitcoin option OI which was at $5 billion. Glassnode suggested that traders have been booking profits on the spread between their spot long Ether versus the quarterly short Ether futures positions.

Could Bitcoin and the altcoins extend their recovery in the next few days? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

Bitcoin rose above the overhead resistance of $24,668 on Aug. 13 and Aug. 14 but the bulls could not sustain the higher levels. This indicates that bears are selling on rallies but repeated breach of an overhead resistance tends to weaken it.

The gradually upsloping 20-day exponential moving average of $23,414 and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside. If bulls sustain the price above $25,000, the momentum could pick up further and the BTC/Tether (USDT) pair could rally to $28,000.

This level may act as a stiff resistance but if bulls clear this hurdle, the rally could extend to $32,000. The critical level to watch on the downside is the 20-day EMA. A bounce off it will indicate that