Bitcoin Range Breakout Could Trigger Buys in ADA, ATOM, FIL and EOS This Week

If BTC bounces off its key underlying support, ADA, ATOM, FIL and EOS could break out.

Price analysis

Last week's decline in US equity markets extended the market-wide losing streak to three straight weeks. The Nasdaq Composite has fallen for six straight days for the first time since 2019. Markets' negative reaction to a seemingly positive August jobs report suggests traders are nervous about the Federal Reserve's next steps and its effects on the economy.

Weakness in US equity markets took Bitcoin (BTC) below $20,000 on September 2 and bears kept the price below the level over the weekend. This brought Bitcoin's market dominance to just under 39% on September 4, its lowest level since June 2018, according to data from CoinMarketCap.

Daily View Crypto Market Data . Source: Coin360

Although sentiment remains negative and it's hard to call a bottom, investors who believe in the long-term prospects for crypto -Currencies could seize the opportunity to gradually build positions at lower levels instead of trying to catch the bottom. However, investors might avoid looking for higher prices during bear market rallies and look to buy when price falls to strong support levels.

If Bitcoin stages a recovery, some altcoins could rise. Let's study the charts of the top 5 cryptocurrencies that look strong on the charts.

BTC/USDT

Bitcoin has been trading in a narrow range between $19,520 and $20,576 for the past few days, showing a balance between short-term buyers and sellers. Although the bulls were buying on the dips, they failed to overcome the selling on the higher levels.