Analysts say Bitcoin has started its journey toward a new all-time high and the sideways action from altc
Analysts say Bitcoin has started its journey toward a new all-time high and the sideways action from altcoins suggests traders are shifting funds into BTC.
Bitcoin (BTC) resumed its rally today and has climbed close to $58,000. This marks an almost 100% recovery from the May plunge and shows that any regulatory action by China is only having a temporary effect.
The strong rally in Bitcoin in the past few days has boosted sentiment and analysts are back with their six-figure projections. Geoffrey Kendrick, head of emerging market currency research at Standard Chartered, anticipates Bitcoin to rally to $100,000 by early next year.
David Gokhshtein, the founder of Gokhshtein Media and PAC Global, was even more bullish as he expects Bitcoin to reach $100,000 before the end of the year. Analyst and trader Rekt Capital believes that Bitcoin will rise much higher than $100,000 in the current cycle.
Could Bitcoin break above the stiff overhead resistance and challenge the all-time high and will altcoins play catch up? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s long wick on the Oct. 10 candlestick shows that bears sold at higher levels but their failure to pull the price below the breakout level at $52,920 seems to have energized the bulls.
Aggressive buying today has pushed the price above the Oct. 10 intraday high at $56,561.31, clearing the path for a possible rally to $60,000. The rising 20-day exponential moving average ($50,196) and the relative strength index (RSI) in the overbought zone indicate that bulls are in control.
If bulls thrust the price above $60,000, the BTC/USDT pair could challenge the all-time high at $64,854. The bullish momentum could pick up further if buyers clear this barrier.
The first sign of weakness will be a break and close below the breakout level at $52,920. This will suggest that traders are booking profits at higher levels. The bears will then sense an opportunity and try to pull the price below the 50-day simple moving average ($47,727).
ETH/USDT
Ether’s (ETH) turned down sharply on Oct. 10 but the bulls aggressively purchased the drop to the 20-day EMA ($3,369) today. This is a positive sign as it shows that the sentiment remains bullish and traders are buying on dips.
If bulls push and close the price above the neckline, the inverse head and shoulders (H&S) pattern will complete. This reversal setup has a pattern target at $4,657 but the bears are likely to have other plans as they will try to mount a strong resistance at $4,027.88 and then at the all-time high at $4,372.72.
This bullish view will be negated if the price turns down from the overhead resistance and plummets below the 50-day SMA ($3,351). The ETH/USDT pair could then drop to psychological support at $3,000.
BNB/USDT
Binance Coin (BNB) broke and closed below the 50-day SMA ($425) on Oct. 8. The bulls tried to push the price back above the 50-day SMA on Oct. 9 but failed, inviting selling by short-term traders.
The BNB/USDT pair plunged below the 20-day EMA ($409) on Oct. 10 but the bears could not take advantage of this opportunity. Strong buying at lower levels has pushed the price back above the 20-day EMA today.
If bulls propel the price above the 50-day SMA, the pair could rise to the neckline. A break and close above this level will complete the inverse H&S pattern. The pair may then rally to $518.90 and if this level is crossed, the rally may extend to the pattern target at $554.
Conversely, if the price turns down from the 50-day SMA or the neckline and plunges below the 100-day SMA ($383), the next stop could be $320.
ADA/USDT
Cardano (ADA) is trading inside a symmetrical triangle, which generally acts as a continuation pattern. If bears sink and sustain the price below the support line of the triangle, the correction could resume.
The flattish 20-day EMA ($2.24) and the RSI just below the midpoint, do not give a clear advantage either to the bulls or the bears. The bulls will try to arrest the decline at $1.94 but if they fail to do so, the selling could accelerate and the ADA/USDT pair could drop to $1.60.
Alternatively, if the price rebounds off the support line of the triangle and rises above the 20-day EMA, the bulls will try to push the pair above the resistance line of the triangle. If they succeed, the pair could rise to $2.47 and then rally to $2.80.
XRP/USDT
The tight range trading in XRP resolved to the upside on Oct. 9 with a break and close above the 50-day SMA ($1.08). However, the long wick on the Oct. 10 candlestick shows that bears are defending the minor resistance at $1.24.
If bulls do not give up much ground from the current level, the…
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