Bitcoin remains strong above its recent breakout level, but several major altcoins are still under pressu
Bitcoin remains strong above its recent breakout level, but several major altcoins are still under pressure until BTC reveals its next move.
Bitcoin (BTC) has been sustaining above $54,000 for the past few days but that has not resulted in euphoria among investors. Google Trends data shows that Bitcoin search interest has not picked up in recent days and is nearing one-year lows. Some analysts believe that this is a sign that only stronger hands are accumulating.
A recent report from CoinShares also showed that institutional investors pumped more than $226 million into Bitcoin products in the week ending Oct. 8. The analysis firm estimates that the total assets under management of institutional crypto products have ballooned to $66.7 billion, just 5% below the record hit in May.
Data from Glassnode also shows that the Bitcoin wallets of long-term holders contain 13.3 million Bitcoin, accounting for 70% of the entire Bitcoin supply. The long-term holders have not sold their holdings and have also added more than 2.37 million Bitcoin to their wallets over the past seven months. Bitcoin purchasing by long-term whales outstrips newly mined coins by 12.7 times, the report added.
Could Bitcoin continue its up-move or is it time for a few days of consolidation? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down from $57,680 on Oct. 12 but the long tail on the day’s candlestick suggests buying on dips. The bears again tried to pull the price below the breakout level at $52,920 but the long tail on the day’s candlestick indicates that bulls are not relenting.
The rising 20-day exponential moving average ($51,338) and the relative strength index (RSI) in the positive zone indicate an advantage to buyers. If bulls drive the price above $57,839.04, the BTC/USDT pair could rally to $60,000.
This level may act as a tough resistance but if bulls push the price above it, the pair could retest the all-time high at $64,854. The bullish momentum may pick up if bulls overcome this obstacle.
The breakout level at $52,920 remains the key support to watch on the downside. A break below this level and the 20-day EMA will be the first sign that bulls may be losing their grip.
ETH/USDT
Ether (ETH) has rebounded off the 20-day EMA ($3,390) for the past three days indicating that bulls are accumulating on dips. The bulls will now try to push the price to the neckline of the inverse head and shoulders (H&S) pattern.
A breakout and close above the neckline will complete the bullish setup which has a target objective at $4,657. The gradually rising 20-day EMA and the RSI above 55 indicate a modest advantage to the bulls.
However, the rally may not be linear as the ETH/USDT pair could face stiff resistance at $4,027.88 and later at $4,372.72.
Contrary to this assumption, if the price turns down from the current level or the neckline and breaks below the moving averages, the ETH/USDT pair could drop to $3,160 and later to the psychological support at $3,000.
BNB/USDT
Binance Coin (BNB) broke and closed below the 20-day EMA ($417) on Oct. 10 but the bears could not build on this advantage. The bulls defended the psychological support at $400 and pushed the price back above the 20-day EMA on Oct. 11.
Although bears pulled the price below $400 on Oct. 12, the move appears to have been a bear trap because the BNB/USDT pair recovered quickly and rebounded to the neckline. The buyers have pushed the price above the neckline today.
The bullish inverse H&S pattern will complete if the pair closes above the neckline. This setup could start an up-move to $519.90 where heavy opposition is expected.
A break and close above this level could propel the pair to the pattern target at $554. The bears will have to pull the price below $392.20 to gain the upper hand.
ADA/USDT
Cardano (ADA) broke and closed below the support line of the symmetrical triangle on Oct. 12. This suggests that the uncertainty of the past few days has resolved in favor of the bears.
The bulls will try to push the price back above the 20-day EMA ($2.21) but if they fail, the ADA/USDT pair could drop to $1.87. This is a critical level to monitor because if it breaks down, the decline may extend to $1.63.
The 20-day EMA has started to turn down and the RSI has dropped below 44, indicating advantage to bears. This negative perspective will be invalidated if bulls push and sustain the pair above the resistance line of the triangle.
XRP/USDT
XRP bounced off the 20-day EMA ($1.06) on Oct. 12 but the bulls are finding it difficult to sustain the price above the 50-day simple moving average ($1.08). This suggests a lack of buyers at higher levels.
cointelegraph.com