Bitcoin (BTC), which has been holding above $54,000 for the last few days, has not caused euphoria among investors. Google Trends data indicates that Bitcoin search interest is at its lowest level in one year and has not increased in recent days. Analysts believe this to be a sign that only strong hands are accumulating.
CoinShares recently reported that institutional investors invested more than $226 mil in Bitcoin products during the week ended Oct. 8. According to the analysis firm, the total assets under management for institutional crypto products has risen to $66.7 billion. This is just 5% less than the May record.
Everyday cryptocurrency market performance. Source: Coin360
Glassnode data also shows that long-term holders have a total of 13.3 million Bitcoin in their wallets, which accounts for 70% of all Bitcoin supply. Long-term holders have not sold any of their Bitcoin holdings, and have added more than 2.37million Bitcoin to their wallets in the last seven months. The report also stated that Bitcoin purchases by long-term whales exceeds new coins by 12.7x.
Is Bitcoin on the verge of a major up-move? Or is it time to consolidate for a few more days? Let’s look at the charts for the top 10 cryptocurrency coins to see what happens.
Bitcoin fell from $57,680 Oct. 12, but the candlestick’s long tail suggests that buyers should buy on dips. The bears tried again to lower the price below $52,920, but the candlestick’s long tail indicates that bulls aren’t giving up.
Daily chart of BTC/USDT Source: TradingView
Buyers have an advantage due to the rising exponential moving average (20-day) (EMA) (51,338) and relative strength index (RSI), both in the positive zone. The BTC/USDT pair could rise to $60,000. If bulls push the price higher than $57,839.04.
Although this level can be a strong resistance, bulls could push the price higher than it to retest the all time high of $64,854. Bulls can overcome this obstacle and the bullish momentum could pick up.
On the downside, the breakout level at $52,920 is the support that should be watched. Breaking below this level or the 20-day EMA is a sign that bulls are losing their grip.
The 20-day EMA ($3,390), which Ether (ETH has seen rebound from, indicates that bulls are accumulating in dips. Bulls will attempt to push the price towards the neckline for the inverse head-and shoulders (H&S).
Daily chart of ETH/USDT Source: TradingView
The bullish setup will be complete if the neckline is broken and the breakout occurs. This has a target price of $4,657. A modest advantage for bulls can be seen in the slowly rising 20-day EMA, and the RSI above 56.
The rally could not be linear, however, as the ETH/USDT pairing could face stiff resistance at $4.027.88, and later at $4.372.72.
Contrary to this assumption the ETH/USDT pairs could fall to $3,160 if the price falls below the neckline or current level and then to psychological support at $3,000.
Binance Coin (BNB), which broke below the 20-day EMA ($417) Oct. 10, but the bears couldn’t capitalize on this advantage, Bulls defended $400 psychological support and pushed the price higher than the 20-day EMA Oct. 11.
Daily chart BNB/USDT TradingView
The bears managed to pull the price below $400 on October 12, but it appears that this was a trap. The BNB/USDT exchange pair quickly recovered and bounced back to the neckline. On Oct. 13, the buyers drove the price higher than the neckline.
If the pair closes above its neckline, the bullish inverse H&S formation will be complete. This setup could lead to a move up to $519.90, where there is likely to be heavy opposition.
The pair could reach the target price of $554 if it breaks and closes above this level. To gain the upper hand, the bears must pull the price down below $392.20.
Cardano (ADA), broke below the support line for the symmetrical triangle’s Oct. 12 and closed below it. This indicates that the bears have won the last few days of uncertainty.
Daily chart ADA/USDT Source: TradingView
Bulls will attempt to push the price above the 20-day EMA ($2.21) but if unsuccessful, the ADA/USDT pairing could fall to $1.87. This is an important level to watch because if it fails, the decline could extend to $1.63.
The 20-day EMA is starting to decline and the RSI has fallen below 44, indicating a favorable position for bears. If bulls push the pair higher than the resistance line, this negative outlook will be invalidated.
Ripple (XRP), which bounced off of the 20-day EMA ($1.06) Oct. 12, but the bulls are having difficulty maintaining the price above the simple moving average ($1.08) 50 days. This indicates that there are not many buyers at higher levels.
Daily chart of XRP/USDT Source: TradingView
If bears continue to sink below the 20-day EMA and the price falls, the XRP/USDT currency pair could fall to $1. A close and break below this level could increase selling and bring the pair down to $0.85.
If the price rises above its current level, bulls will attempt to push it higher than the overhead resistance of $1.24. The pair could rally to $1.41 if they succeed.
Solana (SOL), broke below the 50 day SMA ($144) Oct. 12, but bears couldn’t capitalize on this weakness. Bulls purchased the dip aggressively and pushed it back to the 20 day EMA ($151).
Daily chart of SOL/USDT Source: TradingView
Although the SOL/USDT price pair rose slightly above the 20-day EMA, bears have been selling hard and the price has fallen back to the 50 day SMA. The decline could reach $116 if bears continue to sink below the 50 day SMA.
If the price rises above the downtrend line, this negative view will be invalidated. The price could then rise to $177.80, the 61.8% Fibonacci level of retracement. A close below this level may allow for a rally that could lead to $200.
Dogecoin (DOGE), which broke below the 20 day EMA ($0.23) Oct. 10, was not able to regain the level from the bulls. This indicates that the bears are defending the 20-day EMA well.
Daily chart of DOGE/USDT Source: TradingView
The DOGE/USDT currency pair could fall to $0.21, and if that support breaks, $0.19 could become the next stop. This level has been a strong support in the past two instances; bulls could again defend it vigorously.
Contrary to popular belief, if the price rises from its current level and crosses the 20-day EMA, it could move to the downtrend line. The possible end of the down trend will be indicated by a break or close above this resistance.
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The 20-day EMA ($33.02), which Polkadot (DOT ) passed on Oct. 12, indicated that traders are still buying dips and the sentiment is positive. Bulls will now attempt to push the price higher than the overhead resistance of $38.77, where bears are expected stiff resistance.
Daily chart of DOT/USDT Source: TradingView
The DOT/USDT pairing could drop back to the moving averages if the price drops below $38.77. This support is crucial for bulls to protect as a break below 50-day SMA (31.37) could lead to a fall to $25.50.
The uptrend may resume if the price rises above $38.77 from its current level. The pattern target is at $52.04 and the all-time high of $49.78 are the first targets.
The Terra protocol’s LUNA token fell to the 50-day SMA ($35.87 on Oct. 12, but the bulls purchased this dip as seen in the long tail of the day’s candlestick. On Oct. 13, the buyers attempted to push the price above the 20-day EMA (39.15), but failed.
Daily chart of LUNA/USDT Source: TradingView
The 20-day EMA is starting to fall and the RSI has fallen below the midpoint. This suggests that bulls might be losing their grip. The LUNA/USDT exchange could fall to $32.50 if bears pull the price down below the 50-day SMA.
This level could be a strong support, but if it breaks, the selling could intensify and lead to a plunge to $25. The bulls could push the pair up to $45.01 if the price rises above the 20 day EMA.
Uniswap, (UNI), bounced from the $22 support on Oct. 12, and bulls pushed it above the moving averages Oct. 13. The candlestick’s long wick indicates that the price is selling at higher levels.
Daily chart of UNI/USDT Source: TradingView
The 20-day EMA ($24.29), is flat, and the RSI just below the midpoint. This indicates a balance between supply/demand. Bears could win if there is a break or close below $22. The UNI/USDT pairing could drop to $18.
The bullish momentum could pick-up if the price moves above the neckline for the inverted H&S patterns and rises from its current level. The pair could rally to $31.41 before moving toward the $36.98 pattern target.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.