Top 5 cryptocurrencies to watch this week: BTC, ETH, SOL, MATIC, FTM

The news that Bitcoin (BTC), an exchange-traded fund (ETF), could begin trading as soon as next week sent Bitcoin to $62,933, but it has since slowed down.

Market participants think that traders who believed the approval of a Bitcoin ETF product was a rumor may be selling on the news. QCP Capital, a crypto trading firm, stated in an update that approval of futures-based ETFs will not provide a long-term lift for Bitcoin prices comparable to the one in the fourth quarter 2020.

High volatility is not possible in the short term. Investors should concentrate on the main trend and avoid getting caught up in minor corrections that are part the path to new all time highs.

Daily view of crypto market data. Source: Coin360

Foxbit founder Joao Cahada claims that his daughter made a 6,500% profit from the Bitcoin gift she received in 2017. She could not have traded the coin so young, but the returns prove that even though it was difficult for her to trade the coin, patient investors can make huge returns if they aren’t bothered by minor falls.

Could Bitcoin’s rally lead to an all-time high in altcoins? Let’s look at the charts of top 5 cryptocurrencies that could outperform over the next few months.

USDT/BTC

Bitcoin rose above the psychological $60,000 mark and the $58,000 resistance on October 15. Although the bears want to stop the up-move at $62,933, the positive sign is the bulls have not lost much ground. This indicates that traders aren’t closing their positions following the recent up-move, as they expect another leg up.

Daily chart of BTC/USDT Source: TradingView

Both moving averages are moving up, and the relative strength indicator (RSI), is in the overbought area. This indicates that bulls have control. The BTC/USDT pair could rally to $75,000. If the price rises from its current level and breaks through the $62,933- $64,854 resistance zone.

$58,000 is the immediate support. Breaking and closing below this level could lead short-term traders book profits, bringing the price down to $54,336, the 20-day exponential moving mean ($54,336).

The 20-day EMA will bounce back, which indicates that sentiment is positive and traders are buying dips. The bulls will attempt to reestablish the uptrend. Contrarily, a break or close below the 20 day EMA will indicate that bullish momentum has weakened.

Chart for BTC/USDT 4 hours TradingView

On the 4-hour chart, the pair has been in an upward trend. Since the break above the symmetrical triangle, the bears have been unable to lower the price or sustain it below the 50-simple average.

The possibility of a break above $62,933 if the price bounces off the 20EMA may increase. This will indicate that traders don’t wait for a deeper correction before buying. If bears fall and keep the pair below 50 SMA, this bullish assumption will be invalidated. This could lead to a drop of $54,000, and then $52,290.

USDT/ETH

The inverse head-and-shoulders pattern was completed by Ether (ETH)’s break and close above neckline on October 14. The Oct. 16 candlestick’s long wick suggests that bears are trying to stop the up-move within the $4,000 to $4.027.88 area.

Daily chart of ETH/USDT Source: TradingView

The ETH/USDT currency pair could fall to the neckline breakout level if the price falls below the current level. This level is crucial for bulls to defend. If the price falls below this level, bulls will attempt to overcome the overhead hurdle.

If the price closes above $4,027.88, it could open the way for a rally towards the record high of $4,372.72 as well as the pattern target of $4,657. A break below the moving averages could lead to a plunge to $3,257. If this support is broken, the bears will have the upper hand.

Chart for 4 hours ETH/USDT Source: TradingView

While the bears defend the psychological resistance at $4,000, the bulls try to keep the price above 20-EMA. The RSI is close to the midpoint, and the 20EMA is flattening. This suggests a potential consolidation in the near future.

A close above $4,000 may signal the start of the up-move. A break below the neckline will indicate that momentum is weakening. This could lead to a decline in the pair to $3,400.

SOL/USDT

Solana (SOL), broke out and closed above its downtrend line Oct. 15. This is the first sign that bulls may be making a comeback. The bears attempted to bring the price below the downtrend line, but failed.

Daily chart of SOL/USDT Source: TradingView

The SOL/USDT price could reach $177.80 resistance if bulls continue to push the price above its downtrend line. This is a crucial level for bears to defend as if bulls overcome this hurdle, the pair can rise to the $194.60 retracement level and then retest the all time high of $216.

Contrary to popular belief, if the price falls below the overhead resistance or current level and then breaks below the moving averages it could indicate that traders are selling their positions in pullbacks. The price could drop to $116, which is the critical support.

SOL/USDT 4-hour chart. TradingView

Since breaking out from the downtrend line, the 4-hour chart shows that the price has traded between $156.36 to $165.61. The uptrend could resume if buyers continue to propel the price above $165.61.

The overhead zone of $174.86 to $177.79 is the first target. A break and close below $156.36 may open the door to a decline down to $147.11. The pair will likely continue to consolidate within the tight range until then.

Related: Why HODL for 48 Hours? Your altcoin wallet will be grateful

MATIC/USDT

For the past few days, Polygon (MATIC), has traded in a wide range between $1.80 and $1.80. The 20-day EMA ($1.32) is starting to rise and the RSI has risen to the positive territory. This indicates that bulls are trying to win the upper hand.

Daily chart MATIC/USDT Source: TradingView

The MATIC/USDT currency pair could reach $1.80, which would be a significant obstacle. The pair could fall to the 20-day EMA if the price moves below this resistance.

This support is likely to rebound strongly, indicating that sentiment has turned more positive and traders are buying dips. This will increase the chance of a break above $1.80.

The pair could then start a new uptrend at $2.40, and then test the all-time high of $2.70. If the price falls below the moving averages and the current level, it could drop to $1.20, then to $1.

Chart for MATIC/USDT 4 hours Source: TradingView

Both moving averages are moving up, and the RSI has moved into the positive zone. This suggests that the bulls have the advantage in the short-term. Bulls drove the price higher than the overhead resistance zone of $1.45- $1.50, but selling at higher levels has brought the price back within the zone.

The bulls will attempt to resume their up-move if the price bounces off the 20EMA. If the price breaks above $1.63, it could open the way for a rally towards $1.80. If the price falls below $1.45, this positive view will be invalidated.

FTM/USDT

Fantom’s FTM token has a strong uptrend. The breakout level of $1.94 was successfully defended by the bulls, which indicates that sentiment is positive and traders continue to buy on dips.

Daily chart FTM/USDT Source: TradingView

Although the moving averages are showing buyers an advantage, the divergence on RSI may indicate that the bullish momentum is weakening. The uptrend could continue if bulls push the price higher than $2.45. The next target is $3.20.

If the price drops below $2.45, FTM/USDT may drop to $1.94, and then consolidate between these levels for a few more days. Breaking below the 20-day EMA ($1.85) could signal a deeper correction.

Chart for FTM/USDT 4 hours Source: TradingView

The bulls are trying to keep the price above the descending channel. The pair could reach $2.45 if they succeed. Although this level can be a strong resistance, bulls may overcome it and the uptrend could resume.

If the price does not sustain above the channel it could indicate that the demand has dried up at higher levels. The channel may allow the pair to trade within its channels. The pair could drop to $1.50 if it has a break or close below the channel.

You should research all aspects of trading and investment before making any decision.

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Eileen Wilson

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.

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