Bitcoin bulls have set their sights on $50,000 and this renewed push is also boosting large and small-cap
Bitcoin bulls have set their sights on $50,000 and this renewed push is also boosting large and small-cap altcoin prices.
Bitcoin (BTC) is facing rejection near $50,000, indicating that bears are not ready to give up without a fight. Many analysts expect Bitcoin to soar in the last quarter of the year and stock-to-flow model creator PlanB says the “worst-case scenario” for Bitcoin in October is $63,000 and $98,000 by November.
PlanB is not alone in his bullish projection. Using Bitcoin’s relative strength index (RSI) indicator during the four-year cycle, Twitter commentator TechDev suggests that the second leg of the 2021 bull run may just be getting started. The trader expects Bitcoin’s cycle top to be around $200,000.
While historical projections may be pointing for a rally in the last quarter, the rise may not be linear. The US equity market’s volatility in October is 36% higher than the average for the remaining 11 months, according to CFRA chief investment strategist Sam Stovall. Due to Bitcoin’s high correlation with the S&P 500, traders may be in for a roller coaster ride in October.
Could Bitcoin follow its historical precedence and rally to the upside and will altcoins join in on the party? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bulls pushed Bitcoin above the overhead resistance at $48,843.20 on Oct. 3 but the long wick on the day’s candlestick indicates that bears are defending the level aggressively. The price has been trading between the 50-day simple moving average ($46,667) and $48,843.20 for the past two days.
If bulls drive and sustain the price above the overhead resistance, the BTC/USDT pair could pick up momentum and rally to $50,000 and later to $52,920.
The 20-day exponential moving average ($45,478) has turned up and the RSI is in the positive territory, indicating the path of least resistance is to the upside.
Contrary to this assumption if bears pull the price below the 50-day SMA, the pair could drop to the 20-day EMA. A bounce off this support will be a positive sign and the bulls will make one more attempt to clear the overhead hurdle.
The advantage will tilt in favor of the bears if the price breaks and sustains below the 20-day EMA. The pair could then drop to the 100-day SMA ($41,935).
ETH/USDT
The bulls pushed Ether (ETH) above the downtrend line and the moving averages on Oct. 1 but the bears have not thrown in the towel yet. The sellers are attempting to stall the up-move near $3,500 and pull the price back below the 50-day SMA ($3,297).
If they manage to do that, the ETH/USDT pair could drop to the 20-day EMA ($3,194). This is an important support for the bulls to defend because a break below it could attract further selling. The pair may then drop to the psychological level at $3,000 and later to the 100-day SMA ($2,841).
Alternatively, if the price rebounds off the moving averages, the bulls may make one more attempt to propel the price above $3,500. If the price sustains above this resistance, the pair could rise to $3,676.28 and then to $4,000.
BNB/USDT
Binance Coin (BNB) has been facing strong resistance at the overhead resistance at $433 but the positive sign is that bulls have not given up much ground. This indicates that buyers are holding on to their positions as they anticipate a move higher.
The 20-day EMA ($395) has turned up and the RSI is in the positive territory, indicating a slight advantage to the bulls. If buyers drive and sustain the price above $433, the BNB/USDT pair could pick up momentum and rally to $518.90.
Contrary to this assumption, if the price turns down from the current level, the pair may drop to the 20-day EMA. If the price rebounds off this level, the bulls will again try to push the pair above $433. A break and close below the 20-day EMA could keep the pair range-bound for a few days.
ADA/USDT
The bulls pushed Cardano (ADA) above the 20-day EMA ($2.25) for the past two consecutive days but they could not sustain the higher levels. This suggests that the sentiment remains negative and traders are defending the 20-day EMA.
The price has turned down from the 20-day EMA today and the bears will now try to sink the ADA/USDT pair to the critical support at $1.94. If this level gives way, the pair could witness aggressive selling and plummet to $1.60.
This negative view will invalidate if the price turns up from the current level or rebounds off the $1.94 support and rises above the 20-day EMA. The pair could then rally to the 50-day SMA ($2.46) where bears may again mount a stiff resistance. A break above this level could clear the path for an up-move to $2.97.
SOL/USDT
Solana’s (SOL) recovery reached the 61.8% Fibonacci…
cointelegraph.com