Bitcoin (BTC), which continues to see strong selling, as bulls try to turn the psychological level of $60,000 into support. Analysts believe that Bitcoin may experience a correction after traders make profits from the launch of last week’s Bitcoin exchange-traded funds.
The launch of Bitcoin Futures by Chicago Mercantile Exchange, Dec. 18, 2017, marked the end of a bull run and the beginning of a multi-year bear. After the Coinbase IPO on April 4, 2021, a similar crash but of a smaller magnitude was observed. This suggests that the old saying “buy the rumor and sell the news” may be at risk once more.
Daily view of crypto market data. Source:Coin360
However, many analysts don’t seem to be bothered by the pullback. Decentrader, a crypto market intelligence firm, stated that there are no instances where Bitcoin has broken significant all-time highs. They expect the bull run to continue with a target of $72,000 and then $88,000.
However, not all metrics are bullish at the moment. Bybt data shows that Bitcoin reserves have risen to 400,000 Bitcoin via Binance, which suggests that traders might be considering closing their positions.
Could Bitcoin make a strong comeback to boost sentiment in the crypto sector. Let’s look at the charts of top 5 cryptocurrencies that may be in focus over the next few days.
Bitcoin has been subject to strong rejection from the $64,854-$67,000 area. The 20-day exponential moving mean ($58,315) could be reached. This is an important level to monitor. This level will be reaffirmed if the price rises with strength. It will indicate that traders are still buying dips and that sentiment is positive.
Daily chart of BTC/USDT Source: TradingView
The bulls will attempt to push the price higher than the overhead zone. The BTC/USDT exchange pair could resume its uptrend if they succeed. The pair could then rally towards its $84,533 target.
Buyers have an advantage because of the upwardly moving averages and relative strength index (RSI), in the positive zone.
Contrary to the assumption, if the price falls below the 20-day EMA and then goes back up, it could indicate that the $64,854 high may have been a bear trap. The pair could continue to slide towards the 50-day simple move average ($50,927).
Chart for BTC/USDT 4 hours TradingView
The pair is correcting within a downward channel. The pair is currently at $58,739.17 support and, if it breaks, could fall to the support line. The bulls must defend this level as a break below could lead to selling.
The 20-EMA has declined and the RSI is in the negative territory. This indicates that bears hold the upper hand. If the price moves above the channel or the moving averages, this negative view will be invalidated. This will increase the chance of a retesting of the overhead zone.
Solana’s Oct. 22 candlestick (SOL), has a long wick, which suggests that bears are actively defending $216 overhead resistance. Altcoin formed an inside day candlestick pattern on October 23, which indicated indecision between the bulls, and the bears.
Daily chart of SOL/USDT Source: TradingView
Today’s uncertainty ended to the downside and the price could fall to $177.79, the breakout level. This will indicate that traders are buying dips and sentiment is bullish if the price bounces off of this level.
The bulls will attempt to push the price higher than $216. The SOL/USDT pair may rise to $239.83 if they succeed. Buyers will benefit from the marginally rising 20-day EMA ($168), and the RSI in positive territory.
If the price falls below the 20-day EMA, this positive outlook will be negated. This could cause the price to fall below the trendline of triangle.
4-hour chart of SOL/USDT TradingView
On the 4-hour chart, the bears have pulled down the price below 20-EMA. It will indicate that bullish momentum is weakening if sellers keep the price below 20EMA. This could lead to the pair sliding to $177.79, where buying might emerge.
A break above the downtrend line will signal strength. This will indicate that traders are buying dips. This could push the price up to $205.78, and if the resistance is broken, the pair might rally to its highest point.
Avalanche (AVAX), broke above the descending channel and closed above it on Oct. 21. This suggests that the correction might be over. The bulls will attempt to reestablish the uptrend.
Daily chart of AVAX/USDT Source: TradingView
The Oct. 22/23 candlestick’s long wick suggests that demand is drying up at higher levels. The AVAX/USDT exchange could fall to the moving averages.
If the support is strong, traders will continue to buy dips. The bulls will attempt to reestablish the up-move and push the price higher than $69.18. The pair could rally to $73.41 if they succeed and then test the all-time high of $79.80.
Contrary to popular belief, if the price falls below the moving averages, it could cause the pair to drop to $51.04. The support line could become the next stop if this level is not reached.
Chart for AVAX/USDT 4 hours Source: TradingView
Bulls drove the price higher than the downtrend line in the descending triangle, which invalidated the bearish setup. The recovery was brief-lived, as the bears pulled the price below the 20-EMA. This means that sellers should sell at higher levels.
The 50-SMA could see the pair drop. The bears will attempt to push the price back into triangle if this support is broken. If this happens, it will indicate that the breakout above triangle was a bull trap.
Contrarily, if the price goes up from its current level, or bounces off the downtrend line it will be a sign that bulls are buying dips. The buyers will attempt to push the price higher than $69.18. Bulls will win if the price breaks and closes above this resistance. The pair could then begin its climb towards the all-time highest.
Related: Shiba inu jumps to 45% in just two days, reaching an all-time high
Algorand (ALGO), has been trading within a symmetrical triangle over the past few days. Today’s price movement has been a downward move from the resistance line, which indicates that bulls are not willing to give way.
Daily chart for ALGO/USDT TradingView
The ALGO/USDT price pair could fall to the support line of a triangle if the price falls below the moving averages. This is an important level that the bulls must defend as if it falls, the bears could pull the price down to $1.51 or $1.20.
If the price rises above the support line or current level and then breaks through the triangle, it could indicate that bulls are in charge. The price could rally to $2.22, and then retest the record at $2.55.
Chart for ALGO/USDT 4 hours Source: TradingView
The price is being squeezed within the triangle, which could indicate that the pair may be getting ready to make a strong directional move. The crisscrossing moving Averages and the RSI at the midpoint don’t project a clear advantage for either the bulls nor the bears.
Breaking above the triangle could indicate that the bulls have taken in the selling of the bears, and that the pair is ready to resume the up-move. A break below the triangle could indicate that there is more supply than demand, which could lead to a deeper correction.
Axie infinity (AXS), which has formed a symmetrical triangular pattern, indicates indecision between the bulls and bears. Although it is hard to predict the direction of the breakout, the triangle usually acts as a continuation pattern.
Daily chart of AXS/USDT Source: TradingView
The bulls will attempt to push AXS/USDT above the triangle if the price bounces off the support line. It will be a sign of a resumption in the uptrend if they succeed. The pair could then test the record at $155.27.
If buyers can clear this hurdle, the bullish momentum may pick up. The pair could then rally towards the $1865 pattern target.
A break and close below the triangle is the first sign that the market is in deeper correction. The pair could drop to $103.22, then fall to $94.67 at the breakout level.
Chart for AXS/USDT 4 hours Source: TradingView
On the 4-hour chart, the moving averages have remained flattened and the RSI oscillated between 40 and 62. This indicates a state where traders are selling at $140 and buying dips up to $115.
An upward break or close below $115 could indicate that uncertainty is over. This could cause the price to drop below the $90 pattern target. A break above $140 would indicate that bulls are back in play. The pair could rally to $155.27, then to $165 as the pattern target.
You should research all aspects of trading and investment before making any decision.
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.