Rocky road awaits us, but here are 5 altcoins that still look bullish

Bitcoin price looks set to drop further, but this could present trading opportunities in MATIC, ATOM, XMR, and CHZ.

Price analysis

US stock markets plunged on August 26 following Federal Reserve Chairman Jerome Powell's speech in which he reiterated the central bank's hawkish stance. Continuing its correlation with the equity market, Bitcoin (BTC) and cryptocurrency markets also saw a strong sell-off on August 26.

Bitcoin is down around 14% this month, making it the worst August performance since 2015, when the price fell 18.67%. This may be bad news for investors, as September has a dubious record of an average loss of 6% since 2013, according to data from CoinGlass.

Daily View Crypto Market Data . Source: Coin360

While buying in a bear market is not a good strategy, traders can keep a close eye on cryptocurrencies that are outperforming the markets because, in case of any reversal, these will probably be the first to come out of the block. In a bearish market, traders should be patient as they will most likely find plenty of buying opportunities after the market stabilizes.

What are the critical levels to watch out for in Bitcoin? If it stages a reversal, which cryptocurrencies could outperform in the short term? Let's study 5 cryptocurrencies that look strong on the charts.

BTC/USDT

A weak bounce off strong support indicates that the bulls are reluctant to buy aggressively at the level. The bulls successfully defended the support line for several days but were unable to push the price above the 20-day exponential moving average ($21,806). This shows a lack of demand at higher levels.