Bitcoin (BTC), rose today by just $63,000 in a matter of minutes, marking the first time that it has risen since April 18. The recent price surge may be due to various documents that pointed towards the approval of a futures-based BTC ETF (US Securities and Exchange Commission). These documents suggest that the regulator is close to approving the application to list Valkyrie’s Bitcoin Strategy exchange traded fund ETF on Nasdaq.
Analysts noted that gold’s prices had risen dramatically since the 2004 launch of the first U.S. gold ETF. The rally continued, and gold’s value rose by more than 300% after the ETF was approved. It then reached a major peak. It is evident that Bitcoin and gold are both stores of value, which has prompted a lot of excitement about the launch of a Bitcoin ETF.
Everyday cryptocurrency market performance. Source: Coin360
Before the announcement of a Bitcoin Exchange Tradeable Fund, traders seem to have accumulated Bitcoin aggressively. On Oct. 14, the Bitcoin futures open interest on the Chicago Mercantile Exchange reached a new record high, surpassing the April 14th high of $3.02 trillion.
Can Bitcoin surpass the all-time high? Will it continue its northward march? And will altcoins join the party as well? Let’s look at the charts of the top 10 cryptocurrencies to see if we can find out.
On Oct. 14, Bitcoin formed a Doji candlestick structure, indicating uncertainty among bulls and bears above $58,000. Today, this uncertainty was resolved to the upside and the rally has resumed.
Daily chart of BTC/USDT Source: TradingView
The 20-day exponential moving mean ($52,868) is increasing and the relative strength indicator (RSI), is in the overbought area, which suggests that bulls have control. The $64,854 all-time high may prove difficult to overcome.
The 20-day EMA is the first support you should watch for if the BTC/USDT price pair falls below this resistance. If this support is strong, it will indicate that sentiment remains positive and traders continue to buy the dips.
This will increase the likelihood of the resumption or continuation of the uptrend, with the target of $75,000. A break below the 20-day EMA will signal weakness. This could lead to a fall to the simple moving average of $50,514.
Ether (ETH), bounced off the 20 day EMA ($3,479) Oct. 13, and broke above the neckline for the inverse head-and shoulders (H&S), pattern Oct. 14. This completes the bullish setup with a target goal at $4,657.
Daily chart of ETH/USDT Source: TradingView
Both moving averages are increasing and the RSI is above the downtrend line. This suggests that bulls have regained control. The ETH/USDT currency pair could rally to $4.027.88, then test the record at $4.372.72.
Contrary to popular belief, if the price falls below the overhead resistance or current level and then breaks below the neckline it will indicate that bears are continuing to sell rallies. The price could drop to the moving averages. Bulls could lose their grip if the pair breaks below $3,257.
Binance Coin (BNB), broke above the neckline and closed above it on October 13, complete an inverse H&S-type. The pattern target for this bullish setup is $554
Daily chart BNB/USDT TradingView
Although the bears tried to push the price below the breakout level, the candlestick’s long tail indicates that buyers were buying at lower levels. Bullish crossover occurred on the moving averages and the RSI is now in the positive zone. This indicates that bulls are winning.
The resumption or continuation of the uptrend will be signaled if the price moves above the current level. To weaken bullish momentum, the bears will need to pull the BNB/USDT price pair below its moving averages.
Cardano (ADA), a bull, is trying to force Cardano (ADA), back into the symmetrical triangular pattern. But the bears will not be stopped. With vigor, they are defending the support and 20-day EMA ($2.21) with great force.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT pair may drop to $2 if the price drops below the current level. If the price falls below this level, the pair could drop to $1.63 as the pattern target.
Alternatively, if bulls push the price higher than the 20-day EMA, it could reach the resistance line of triangle. If the triangle is broken, the pair could rally to $2.47 and then move to $2.80.
XRP has held above the 20-day EMA ($1.08) over the past few trading days, but the bulls are not able to push it to the overhead resistance of $1.24. This indicates a lack of demand at higher levels.
Daily chart of XRP/USDT Source: TradingView
The XRP/USDT exchange rate could fall to $1 if the price falls below the 20-day EMA. This level could attract buyers again, but if the price falls below $1.24 the bearish momentum could increase and the slide could become deeper to $0.85.
If the price moves above $1.24 and rises from its current level, it could indicate that selling pressure is decreasing. If bulls break this barrier, then the pair could rise to $1.41. The next stop could be at $1.66.
The bulls have been accumulating by not sinking Solana (SOL), below the 50-day SMA ($147) over the past few days. The bulls are trying to hold the price above its downtrend line.
Daily chart of SOL/USDT Source: TradingView
The SOL/USDT pair may rise to $177.80 Fibonacci Retracement Level 61.8% if they succeed. Although this level can be a strong resistance, bulls may overcome it and the pair could rally to $200 before retesting the all-time high of $216.
A break below the 50-day SMA will signal weakness. This could bring the price down to $116. This level is important to monitor as a break below could increase the selling.
Polkadot (DOT), soared and closed above $38.77 overhead resistance Oct. 13, suggesting that consolidation has resolved in favour of the bulls.
Daily chart of DOT/USDT Source: TradingView
On Oct. 14, and today, the bears attempted to bring it back below $38.77 but failed. This is a sign that buyers are actively defending the breakout price. The DOT/USDT pair could reach $49.78 if bulls push the price higher than $43.22.
The pair could fall to the 20-day EMA (34.84) if the price falls below the current level. This support will be strong and traders will buy on dips if it bounces off.
The pair could also drop to $25.50 if bears lower the price below the moving Averages. This would indicate that the breakout above $38.77 could have been a bullish trap.
Related: CFTC fines Tether, Bitfinex a total of $42.5 million
Dogecoin (DOGE), which is currently trading at $0.0.23, is not being sustained by bulls. This suggests that buyers are drying up at higher levels. The bulls have not allowed price to drop below $0.22, which is a minor plus.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is flattened and the RSI just above the middlepoint. This suggests a balance between demand and supply. If the $0.21 support breaks, this equilibrium could tilt in favor for the bears. This could lead to a drop to $0.19.
The bulls will attempt to push the price downtrend line if the price moves up from its current level. If the price breaks above this level, it could signal that the decline is over. The DOGE/USDT currency pair could rise to $0.32, then $0.35.
Terra protocol’s LUNA token has been finding support at the 50 day SMA ($36.24), for the last three days, but the bulls are not able to push the price higher than the 20-day EMA ($38.86). This indicates that demand is drying up at higher levels.
Daily chart of LUNA/USDT Source: TradingView
The 20-day EMA is sloping slightly and the RSI just below the midpoint. This indicates a slight advantage for bears. If the 50-day SMA is broken, the price could fall to $32.50. If this support fails, the correction could reach $25.
If bulls push the price above the 20 day EMA, the LUNA/USDT pairing could gain momentum and reach $45.01, where bears might again attempt to mount a strong resistance. If bulls overcome this obstacle, a retest at the all-time high of $49.54 will be possible.
Uniswap, (UNI), rose above the moving averages Oct. 13, and reached the neckline for the inverse H&S patterns Oct. 14. The bears are trying to stop the recovery at the neckline.
Daily chart of UNI/USDT Source: TradingView
Bullish crossover is possible with the moving averages. The RSI has risen into positive territory, indicating that bulls hold the upper hand. The bulls will attempt to push the UNI/USDT price above the neckline if the price bounces off the moving averages.
They will succeed if they succeed. This setup will initiate a rally to $31.41 then to the pattern target of $36.98. If the price falls below $22, this bullish view will be invalidated. If the price falls below $22, the pair may fall to $18.
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.