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According to analysts, Bitcoin has begun its journey towards a new all-time high, and the sideways movement of altcoins indicates that traders are shifting funds into BTC.
On October 11, Bitcoin (BTC) resumed its rally, climbing close to $58,000. This represents a nearly 100 percent recovery from the May low and demonstrates that any regulatory action taken by China has only a short-term impact.
The recent strong rally in Bitcoin has boosted sentiment, and analysts are resuming their six-figure projections. Geoffrey Kendrick, Standard Chartered’s head of emerging market currency research, believes Bitcoin will reach $100,000 by early next year.
David Gokhshtein, founder of Gokhshtein Media and PAC Global, is even more optimistic, predicting that Bitcoin will reach $100,000 by the end of the year. Rekt Capital, an analyst and trader, believes that Bitcoin will rise much higher than $100,000 in the current cycle.
Will Bitcoin be able to break through the stiff overhead resistance and challenge the all-time high, or will altcoins have to play catch-up? To find out, let’s look at the charts of the top ten cryptocurrencies.
Bitcoin’s long wick on the Oct. 10 candlestick shows that bears sold at higher levels but their failure to pull the price below the breakout level at $52,920 seems to have energized the bulls.
Aggressive buying on Oct. 11 has pushed the price above the Oct. 10 intraday high at $56,561.31, clearing the path for a possible rally to $60,000. The rising 20-day exponential moving average (EMA) ($50,196) and the relative strength index (RSI) in the overbought zone indicate that bulls are in control.
If bulls thrust the price above $60,000, the BTC/USDT pair could challenge the all-time high at $64,854. The bullish momentum could pick up further if buyers clear this barrier.
The first sign of weakness will be a break and close below the breakout level at $52,920. This will suggest that traders are booking profits at higher levels. The bears will then sense an opportunity and try to pull the price below the 50-day simple moving average (SMA) ($47,727).
Ether’s (ETH) turned down sharply on Oct. 10 but the bulls aggressively purchased the drop to the 20-day EMA ($3,369) on Oct. 11. This is a positive sign as it shows that the sentiment remains bullish and traders are buying on dips.
If bulls push and close the price above the neckline, the inverse head and shoulders (H&S) pattern will complete. This reversal setup has a pattern target at $4,657 but the bears are likely to have other plans as they will try to mount a strong resistance at $4,027.88 and then at the all-time high at $4,372.72.
This bullish view will be negated if the price turns down from the overhead resistance and plummets below the 50-day SMA ($3,351). The ETH/USDT pair could then drop to psychological support at $3,000.
Binance Coin (BNB) broke and closed below the 50-day SMA ($425) on Oct. 8. The bulls tried to push the price back above the 50-day SMA on Oct. 9 but failed, inviting selling by short-term traders.
The BNB/USDT pair plunged below the 20-day EMA ($409) on Oct. 10 but the bears could not take advantage of this opportunity. Strong buying at lower levels has pushed the price back above the 20-day EMA on Oct. 11.
If bulls propel the price above the 50-day SMA, the pair could rise to the neckline. A break and close above this level will complete the inverse H&S pattern. The pair may then rally to $518.90 and if this level is crossed, the rally may extend to the pattern target at $554.
Conversely, if the price turns down from the 50-day SMA or the neckline and plunges below the 100-day SMA ($383), the next stop could be $320.
Cardano (ADA) is trading inside a symmetrical triangle, which generally acts as a continuation pattern. If bears sink and sustain the price below the support line of the triangle, the correction could resume.
The flattish 20-day EMA ($2.24) and the RSI just below the midpoint, do not give a clear advantage either to the bulls or the bears. The bulls will try to arrest the decline at $1.94 but if they fail to do so, the selling could accelerate and the ADA/USDT pair could drop to $1.60.
Alternatively, if the price rebounds off the support line of the triangle and rises above the 20-day EMA, the bulls will try to push the pair above the resistance line of the triangle. If they succeed, the pair could rise to $2.47 and then rally to $2.80.
The tight range trading in Ripple (XRP) resolved to the upside on Oct. 9 with a break and close above the 50-day SMA ($1.08). However, the long wick on the Oct. 10 candlestick shows that bears are defending the minor resistance at $1.24.
If bulls do not give up much ground from where they are now, the chances of a break above $1.24 increase. The 20-day EMA ($1.06) is sloping up slightly, and the RSI is above 60, indicating a buyer’s advantage.
If the XRP/USDT pair breaks and closes above $1.24, it could move to $1.41. This could be a difficult hurdle to overcome, but if it is, the pair could rally to $1.66. This bullish outlook will be rendered null and void if the price falls and breaks below the 20-day EMA. This could push the price down to $1 and then to the 100-day simple moving average ($0.93).
Solana’s (SOL) weak bounce off the 20-day EMA ($151) on Oct. 8 and 9 suggests a lack of aggressive buying by the bulls. Supply exceeded demand on Oct. 10 and the price slipped below the 20-day EMA.
The bulls will now try to defend the 50-day SMA ($141). They will have to push and sustain the price above the downtrend line to signal that the selling pressure is easing. The bullish momentum could pick up on a breakout and close above the 61.8% Fibonacci retracement level at $177.80.
Conversely, if the price turns down and breaks below the 50-day SMA, the SOL/USDT pair could drop to the strong support at $116. This is an important level for the bulls to defend because if it cracks, the pair could plummet to the 100-day SMA ($90).
Although bulls defended the 100-day SMA ($0.24) on Oct. 8 and 9, they could not push Dogecoin (DOGE) above the 50-day SMA ($0.24). This suggested that demand dries up at higher levels. The bears took advantage of this situation and pulled the price below the moving averages on Oct. 10.
If bulls fail to push the price back above the moving averages quickly, the DOGE/USDT pair could drop to the $0.21 to $0.19 support zone. The bears will have to break this support zone to gain the upper hand.
On the contrary, if the price turns up and breaks above the moving averages, the bulls will make another attempt to push the price above the downtrend line. If they pull it off, the pair could start an up-move $0.32 and later to $0.35.
Polkadot (DOT) has been range-bound between $25.50 and $38.77 for the past many days. The price turned down from $37.45 on Oct. 10, suggesting that bears are defending the overhead resistance.
The gradually upsloping moving averages and the RSI in the positive territory signal a modest edge to the buyers. A breakout and close above $38.77 will be the first sign of the resumption of the up-move.
The pattern target of the breakout from the rectangle pattern is $52.04. Alternatively, if bears sink the price below the moving averages, it will indicate that the DOT/USDT pair could extend its stay inside the range for a few more days.
Terra protocol’s LUNA token turned down from $48.56 on Oct. 8, indicating that bears are aggressively defending the overhead resistance at $50. The failure to break above the resistance may have prompted short-term traders to book profits.
On October 10, the LUNA/USDT pair fell and closed below the 20-day EMA ($39.64). Bullish attempts to reclaim the level were met with strong selling on Oct. 11, indicating that sentiment has shifted and traders are closing positions on every minor rally.
The 50-day SMA ($35.58) is the next level of support on the downside, and if it gives way, the decline could extend to $32.50. In contrast, if the price rises from its current level and surpasses the 20-day EMA, the bulls may attempt to push the pair above the overhead resistance once more.
Uniswap (UNI) broke and closed below the 20-day EMA ($24.45) on Oct. 10 but the bulls are trying to defend the 100-day SMA ($23.76). The buyers will now try to push the price back above the 50-day SMA ($25.05).
If they succeed, the UNI/USDT pair could rise to the neckline of the inverted H&S pattern. The bullish momentum could pick up if buyers push and sustain the price above this resistance. The pair could then begin its ascent toward the pattern target at $36.98.
Contrary to this assumption, if bears pull the price below the 100-day SMA, the pair could drop to $22. This is an important level for the bulls to defend because if it is breached, the selling could intensify and the pair may drop to $18.