BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA, UNI Price Movement Analysis for 7th October, 2021

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Bitcoin has broken through the overhead resistance, which has pushed several altcoins higher.

On Oct. 6, Bitcoin (BTC) surpassed the $1 trillion market capitalisation, bringing the total crypto market capitalisation close to $2.3 trillion. This represents a complete 100 percent recovery from the June 22 lows, when total crypto market capitalisation was around $1.15 trillion.

According to Chainalysis, the Central and Southern Asia and Oceania region experienced a 706 percent increase in cryptocurrency transactions between July 2020 and June 2021. The total transaction value was $572.5 billion, accounting for 14% of global transaction value.

Daily cryptocurrency market performance. Source: Coin360

On October 4, BofA Securities, a subsidiary of Bank of America Corporation (BoA), published a report that projected a bullish long-term picture for cryptocurrencies. According to the report, by June 2021, approximately 221 million users will have traded cryptocurrencies or used a blockchain application, representing a massive increase from 66 million users in May 2020.

According to the BofA report, the crypto sector is “too large to ignore” and consists of “so much more” than Bitcoin.

Can Bitcoin gain traction and challenge the all-time high? Will this increase interest in cryptocurrencies? To find out, let’s look at the charts of the top ten cryptocurrencies.

 

BTC/USDT

Bitcoin broke and closed above $48,843.20 on Oct. 4, which was the first sign that the correction might be over. This may have attracted short-covering by the bears, resulting in a rally on Oct. 5 and 6.

BTC/USDT daily chart. Source: TradingView

The bulls have thrust the price above $52,920, which invalidates the head and shoulders (H&S) pattern. The 20-day exponential moving average (EMA) ($46,947) has turned up and the relative strength index (RSI) is close to the overbought zone, indicating that bulls are in command.

If bulls sustain a price above $52,920, the BTC/USDT pair could pick up momentum and rally to $60,000. This level may act as a resistance but if crossed, the pair could challenge the all-time high at $64,854.

Contrary to this assumption, if the price fails to sustain above $52,920, it will suggest that demand dries up at higher levels. The pair may then correct to $48,843.20.

ETH/USDT

Ether (ETH) bounced off the 50-day simple moving average (SMA) ($3,317) on Oct. 4 and the bulls extended the recovery on Oct. 5. However, the bears tried to stall the rally on Oct. 6 and they pulled the price to the 50-day SMA.

ETH/USDT daily chart. Source: TradingView

The long tail on the day’s candlestick shows aggressive buying near the 50-day SMA. The rising 20-day EMA ($3,262.50) and the RSI in the positive zone indicate that bulls are in control.

If buyers propel the price above $3,676.28, the ETH/USDT pair could rally to $4,027.88. The bears will have to pull and sustain the price below the 20-day EMA to open the gates for a possible decline to $3,000 and then to the 100-day SMA ($2,871).

See also  Chainlink, Synthetix, BAT Price Moment Analysis for 5th February 2021

BNB/USDT

Binance Coin (BNB) broke and closed above the overhead resistance at $433 but the bulls have not been able to build on this strength. The bears pulled the price back below $433 on Oct. 6 but the positive sign is that bulls aggressively bought the dip as seen from the long tail on the day’s candlestick.

BNB/USDT daily chart. Source: TradingView

The 20-day EMA ($404) is sloping up and the RSI is in the positive territory, indicating that buyers have the upper hand. If bulls push and sustain the price above $444, the BNB/USDT pair could rally to $518.90.

This level may again act as a stiff resistance but if bulls can overcome the hurdle, the momentum could pick up. Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, the next stop could be the 100-day SMA ($377).

ADA/USDT

The bulls have not been able to clear the overhead hurdle at the 20-day EMA ($2.25) in the past few days, indicating selling at higher levels. The long tail on today’s candlestick suggests that bulls are accumulating Cardano (ADA) at lower levels.

ADA/USDT daily chart. Source: TradingView

The 20-day EMA is flattening out and the RSI is just below the midpoint, suggesting a balance between supply and demand. If bulls drive the price above the 20-day EMA, the ADA/USDT pair could rally to $2.47.

Alternatively, if the price once again turns down from the 20-day EMA, the bears will try to sink the pair to $1.94. A break and close below this support could clear the path for a further decline to $1.60.

XRP/USDT

Ripple (XRP) has been stuck between the 20-day EMA ($1.02) and the 50-day SMA ($1.10) for the past few days. This shows that bulls are buying near the 20-day EMA while bears are defending the 50-day SMA.

XRP/USDT daily chart. Source: TradingView

The 20-day EMA has started to turn up and the RSI has climbed into the positive territory, indicating that bulls have a slight edge. If buyers push and sustain the price above the 50-day SMA, the XRP/USDT pair could start its northward march toward $1.41.

On the other hand, if the price turns down from the current level and breaks below the 20-day EMA, the decline could deepen to the 100-day SMA ($0.91). A break and a close below this level could result in a drop to $0.70.

SOL/USDT

Solana (SOL) turned down from the 61.8% Fibonacci retracement level at $177.80 and dipped to the 20-day EMA ($152) on Oct. 6. The bulls are currently attempting to defend the 20-day EMA.

SOL/USDT daily chart. Source: TradingView

If the price rises from the current level, the bulls will try to push the SOL/USDT pair above $177.80. If they manage to do that, the pair could climb to $200 and then retest the all-time high at $216.

See also  Maker, Sushiswap, Tron Price Movement Analysis for 15th March, 2021

On the contrary, if bears pull the price below the 20-day EMA, the pair could drop to the 50-day SMA ($133) and then to the critical support at $116. If this level breaks down, the selling could intensify and the pair may plunge to the 100-day SMA ($84).

DOGE/USDT

Dogecoin (DOGE) soared above the 20-day EMA ($0.22) on Oct. 4, indicating that bulls are attempting a comeback. The buyers pushed the price above the 50-day SMA ($0.25) on Oct. 5 but the bears successfully defended the downtrend line.

DOGE/USDT daily chart. Source: TradingView

Another attempt by the bulls to drive the price above the downtrend line faced strong resistance on Oct. 6 but the positive sign is that bulls are not giving up much ground. The 20-day EMA has turned up gradually and the RSI is in the positive zone, indicating that the path of least resistance is to the upside.

If bulls drive and sustain the price above the downtrend line, the DOGE/USDT pair could rally to $0.32 and then to $0.35. Alternatively, if the price turns down and breaks below the 20-day EMA, the pair could plummet to the $0.21 to $0.19 support zone.

DOT/USDT

Polkadot (DOT) rebounded off the 50-day SMA ($30.21) on Oct. 4 but the bulls could not sustain the higher levels. The bears pulled the price back below the 50-day SMA today but the long tail on the day’s candlestick shows aggressive buying near $28.60.

DOT/USDT daily chart. Source: TradingView

The bulls will now try to propel the price above the overhead resistance at $33.60. If that happens, the DOT/USDT pair could rally to $38.77. This level may again act as a resistance but if the bulls can overcome the hurdle, the pair may start its journey toward $49.78.

On the contrary, if the price turns down from the current level of $33.60, the bears will again try to pull the price below the neckline. Such a move will complete the H&S pattern, which has a target objective of $12.23.

LUNA/USDT

Terra protocol’s LUNA token broke to a new all-time high on Oct. 4 but the long wick on the day’s candlestick showed profit-booking near the psychological level at $50. The token made an inside-day candlestick pattern on Oct. 5, indicating indecision among bulls and bears.

LUNA/USDT daily chart. Source: TradingView

On October 6, the LUNA/USDT pair fell to $40.38 as a result of this uncertainty. Lower levels, on the other hand, drew aggressive buying, as evidenced by the long tail on today’s candlestick.

The bulls will now attempt to push the price above $50 once more in order to resume the uptrend. The bears, on the other hand, will attempt to stall the recovery by pulling the price below the 20-day EMA ($38.57). If this occurs, the pair may fall to the critical support level of $32.50.

See also  Ethereum Price Movement Analysis for 18th July, 2021

 

UNI/USDT

The bulls are aggressively buying on dips to the 20-day EMA ($24.33) as seen from the long wick on the candlestick for the past two days. On Oct. 6, bears pulled Uniswap (UNI) below the 20-day EMA but bulls defended the 100-day SMA ($23.47).

UNI/USDT daily chart. Source: TradingView

The gradually rising 20-day EMA and the RSI in the positive territory indicate a minor advantage to buyers. If bulls push and close the price above the neckline, the inverse H&S pattern will complete. This positive setup has a target objective of $36.98.

Contrary to this assumption, if the price turns down from the current level or from the neckline and breaks below $22, it will suggest that demand dries up at higher levels. The UNI/USDT pair could then drop to $18.

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