Bitcoin has surged above the overhead resistance and that has pulled several altcoins higher.
Bitcoin has surged above the overhead resistance and that has pulled several altcoins higher.
Bitcoin (BTC) skyrocketed above the $1 trillion market capitalization today, pulling the total crypto market capitalization close to $2.3 trillion. This marks a complete 100% recovery from the June 22 lows when the total crypto market capitalization had plunged to about $1.15 trillion.
According to Chainalysis, the Central and Southern Asia and Oceania region has seen a massive increase of 706% in crypto transactions between July 2020 and June 2021. The total transaction value was $572.5 billion, accounting for 14% of the global transaction value.
The Bank of America Corporation (BoA) subsidiary, BofA Securities published a report on Oct. 4 that projected a bullish long-term picture for cryptocurrencies. The report estimated that by June 2021, about 221 million users had either traded cryptocurrencies or used a blockchain application, a massive increase from 66 million users in May 2020.
The BofA report said that the crypto sector was “too large to ignore” and it comprised “so much more” than just Bitcoin.
Could Bitcoin pick up momentum and challenge the all-time high? Will this boost interest in altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke and closed above $48,843.20 on Oct. 4, which was the first sign that the correction may be over. This may have attracted short-covering by the bears, resulting in a rally on Oct. 5 and today.
The bulls have thrust the price above $52,920, which invalidates the head and shoulders (H&S) pattern. The 20-day exponential moving average ($46,947) has turned up and the relative strength index (RSI) is close to the overbought zone, indicating that bulls are in command.
If bulls sustain the price above $52,920, the BTC/USDT pair could further pick up momentum and rally to $60,000. This level may act as a resistance but if crossed, the pair could challenge the all-time high at $64,854.
Contrary to this assumption, if the price fails to sustain above $52,920, it will suggest that demand dries up at higher levels. The pair may then correct to $48,843.20.
ETH/USDT
Ether (ETH) bounced off the 50-day simple moving average ($3,317) on Oct. 4 and the bulls extended the recovery on Oct. 5. However, the bears tried to stall the rally today and they pulled the price to the 50-day SMA.
The long tail on the day’s candlestick shows aggressive buying near the 50-day SMA. The rising 20-day EMA ($3,262.50) and the RSI in the positive zone indicate that bulls are in control.
If buyers propel the price above $3,676.28, the ETH/USDT pair could rally to $4,027.88. The bears will have to pull and sustain the price below the 20-day EMA to open the gates for a possible decline to $3,000 and then to the 100-day SMA ($2,871).
BNB/USDT
Binance Coin (BNB) broke and closed above the overhead resistance at $433 but the bulls have not been able to build on this strength. The bears pulled the price back below $433 today but the positive sign is that bulls aggressively bought the dip as seen from the long tail on the day’s candlestick.
The 20-day EMA ($404) is sloping up and the RSI is in the positive territory, indicating that buyers have the upper hand. If bulls push and sustain the price above $444, the BNB/USDT pair could rally to $518.90.
This level may again act as a stiff resistance but if bulls can overcome the hurdle, the momentum could pick up. Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, the next stop could be the 100-day SMA ($377).
ADA/USDT
The bulls have not been able to clear the overhead hurdle at the 20-day EMA ($2.25) in the past few days, indicating selling at higher levels. The long tail on today’s candlestick suggests that bulls are accumulating Cardano (ADA) at lower levels.
The 20-day EMA is flattening out and the RSI is just below the midpoint, suggesting a balance between supply and demand. If bulls drive the price above the 20-day EMA, the ADA/USDT pair could rally to $2.47.
Alternatively, if the price once again turns down from the 20-day EMA, the bears will try to sink the pair to $1.94. A break and close below this support could clear the path for a further decline to $1.60.
XRP/USDT
XRP has been stuck between the 20-day EMA ($1.02) and the 50-day SMA ($1.10) for the past few days. This shows that bulls are buying near the 20-day EMA while bears are defending the 50-day SMA.
The 20-day EMA has started to turn up and the RSI has climbed into the positive territory, indicating that bulls have a slight edge. If buyers push and sustain the price above the…
cointelegraph.com