Bitcoin (BTC), which has risen above $1 trillion in market capitalization, today brought the total crypto market capitalization to $2.3 trillion. This represents a complete recovery of 100% from the June 22 lows, when total crypto market capitalization plummeted to $1.15 trillion.
Chainalysis reports that crypto transactions have increased by 706% in the Central and Southern Asia region and Oceania between July 2020-2021. The global transaction value was 14% at $572.5 billion.
Everyday cryptocurrency market performance. Source: Coin360
BofA Securities, a Bank of America Corporation (BoA), published an Oct. 4 report that predicted a bullish long term picture for cryptocurrency. According to the report, 221 million people had traded or used a cryptocurrency application by June 2021. This is a huge increase over the 66 million users who were using a blockchain app in May 2020.
BofA reported that the crypto industry was too large to ignore and contained “so many more” than Bitcoin.
Could Bitcoin gain momentum and challenge the all time high? This could increase interest in altcoins. Let’s look at the charts for the top 10 cryptocurrencies to see how they compare.
Bitcoin closed at $48,843.20, breaking the previous correction. This could have led to short-covering by bears that resulted in a rally today and Oct. 5.
Daily chart of BTC/USDT Source: TradingView
The bulls have pushed the price to $52,920 which is invalidating the head and shoulders pattern (H&S). The relative strength index (RSI), which is very close to the overbought area, has moved up on the 20-day exponential moving Average ($46,947), indicating that the bulls are in control.
The BTC/USDT pairing could gain momentum if bulls keep the price above $52,920. This would allow the pair to rally to $60,000. Although this level could act as resistance, if it is crossed, the pair may challenge the all-time high of $64,854.
Contrary to the assumption, if the price does not sustain above $52,920 it will indicate that demand is drying up at higher levels. This could lead to the pair reversing to $48,843.20.
Ether (ETH), bounced off Oct. 4’s simple moving average ($3,317) and bulls extended their recovery Oct. 5. The bears attempted to stop the rally today, and they pulled the price down to the 50-day SMA.
Daily chart of ETH/USDT Source: TradingView
The candlestick’s long tail shows that aggressive buying is taking place near the 50-day SMA. Bulls are in control, as evidenced by the rising 20-day EMA ($3,262.50), and the RSI in positive territory.
The ETH/USDT pair could rise to $4,027.88 if buyers push the price higher than $3,676.28. To open the doors for a decline to $3,000, the bears must pull the price below the 20 day EMA and then the 100-day SMA ($2,871).
Binance Coin (BNB), broke above the overhead resistance at $433, but the bulls are not able to capitalize on this strength. Today’s price fell below $433 by the bears, but it is a positive sign that bulls bought the dip aggressively as shown in the candlestick’s long tail.
Daily chart BNB/USDT TradingView
The 20-day EMA ($404), is trending upward and the RSI remains in the positive territory. This indicates that buyers are the ones who have the upper hand. The BNB/USDT pair could rise to $518.90 if bulls continue pushing the price higher than $444.
Although this level could act as a strong resistance, bulls may be able to overcome it and the momentum will pick up. Contrary to the assumption, if the price falls below the 20-day EMA and then breaks below it, the next stop could come at the 100-day SMA ($377).
In the last few days, the bulls have not been able clear the overhead hurdle at $20 EMA ($2.25). This suggests that they are selling at higher levels. Today’s candlestick shows a long tail, suggesting that bulls are accumulating Cardano at lower levels.
Daily chart ADA/USDT Source: TradingView
The 20-day EMA has been flattening and the RSI is at the midpoint. This suggests a balance between supply/demand. The ADA/USDT pair could rise to $2.47 if bulls push the price higher than the 20-day EMA.
The bears could try to sink the pair as the price falls below the 20-day EMA. Breaking below this support may open the way for a further fall to $1.60.
For the past few days, XRP has been between the 20-day EMA ($1.02) & the 50-day SMA ($1.10). This indicates that bulls are buying close to the 20-day EMA, while bears are defending 50-day SMA.
Daily chart of XRP/USDT Source: TradingView
Bulls are showing some strength as the 20-day EMA is starting to rise and the RSI has climbed up into the positive territory. The XRP/USDT pair may begin its upward march towards $1.41 if buyers continue to push the price higher than the 50-day SMA.
However, a price decline from the current level could lead to a drop to the 100-day SMA ($0.91). A close below the level and a break could lead to a fall of $0.70.
Solana (SOL), which had fallen below the 61.8% Fibonacci retracement at $177.80, dropped to the 20-day EMA ($152), today. The bulls are trying to defend the 20 day EMA.
Daily chart of SOL/USDT Source: TradingView
The bulls will push the SOL/USDT price above $177.80 if the price increases from its current level. The pair could reach $200 if they can do so, and then test the record at $216.
However, if bears push the price below the 20 day EMA, the pair may drop to the 50-day SMA ($133), and then to critical support at $116. The selling could accelerate if this level is broken and the pair could plunge to the 100 day SMA ($84).
Dogecoin (DOGE), which soared above its 20-day EMA ($0.22) Oct. 4, indicated that bulls are trying to make a comeback. Although the buyers drove the price higher than the 50-day SMA ($0.25) Oct. 5, the bears defended the downtrend line.
Daily chart of DOGE/USDT Source: TradingView
The bulls’ attempt to push the price higher than the downtrend line is currently facing resistance. However, this is a positive sign that bulls aren’t giving up any ground. The 20-day EMA has been rising steadily and the RSI is in a positive zone. This indicates that the path of least resistance lies to the upside.
The DOGE/USDT price could rise to $0.32 if bulls continue to drive the price higher than the downtrend line. If the price falls below the 20-day EMA and the pair crashes to $0.21 to $0.19 support zones, it could fall to $0.32.
Related: Bank of America names 20 US high-profile companies that have crypto exposure
Polkadot’s (DOT) price rebounded from the 50-day SMA ($30.21 on Oct. 4, but the bulls couldn’t sustain higher levels. Today’s price fell below the 50-day SMA, but the candlestick shows that the bears were aggressively buying at $28.60.
Daily chart of DOT/USDT Source: TradingView
Bulls will attempt to push the price higher than the overhead resistance of $33.60. The DOT/USDT pairing could rally to $38.77 if that happens. The resistance level could be a barrier again, but the bulls may overcome it and the pair could begin its journey towards $49.78.
The bears will attempt to lower the price below its neckline if the price falls from $33.60. This move would complete the H&S pattern which has a target of $12.23.
Terra protocol’s LUNA token reached a new all time high on Oct. 4, but the candlestick’s long wick showed profit-booking at a psychological level of $50. On Oct. 5, the token formed an inside-day candlestick pattern, indicating indecision between bulls and bears.
Daily chart of LUNA/USDT Source: TradingView
Today, this uncertainty was resolved and the LUNA/USDT pairing plunged to $43.38. However, aggressive buying at lower levels was possible as evidenced by the candlestick’s long tail.
The bulls will attempt to push the price higher than $50 to resume the uptrend. The bears, on the other hand will attempt to halt the recovery and bring the price below its 20-day EMA (38.57). The pair could fall to $32.50 as a result.
As seen in the candlestick’s long wick for the past two day, bulls are buying aggressively on dips to 20-day EMA ($24.33). Today, bears pulled Uniswap(UNI) below the 20 day EMA, but bulls defended and defended the 100-day SMA (23.47).
Daily chart of UNI/USDT Source: TradingView
Buyers may be able to take advantage of the gradually rising 20-day EMA, and the RSI within the positive territory. The inverse H&S pattern can be completed if bulls push the price higher than the neckline. This positive setup has an objective target of $36.98.
Contrary to the assumption, if the price falls below the neckline or the current level and falls below $22, it will indicate that the demand is drying up at higher levels. The UNI/USDT exchange rate could fall to $18.
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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.