Analysts say that Bitcoin (BTC) has started its ATH journey and altcoin prices are moving sideways, so investors are shifting their funds to BTC. Before technical analysis, we will briefly touch on the developments in the market. 6-digit price predictions for the end of the year are confirmed by more than one analyst…
What happened in the Bitcoin (BTC) and altcoin market?
Bitcoin price started a new rally on October 11 and the rise reached levels close to $58,000. This marks an almost 100% recovery since the May crash, showing that China’s restrictive decisions have only had a temporary effect. Bitcoin has also increased its strong rally mood over the past few days, with analysts returning their year-end forecasts to 6-digit prices. Geoffrey Kendrick, head of research at Standard Chartered, expects Bitcoin to hit $100,000 early next year.
Also, David Gokhshtein, founder of Gokhshtein Media and PAC Global, said that Bitcoin could reach $100,000 by the end of the year. At Twitter analyst and trader Rekt Capital, he thinks the Bitcoin price will exceed $100,000 in the current cycle. Now, can Bitcoin price break the overhead resistance levels and challenge the ATH level? If this happens, how might altcoin prices react? To answer, we take a look at analyst Rakesh Upadhyay’s technical analysis…
Bitcoin (BTC) technical analysis
Bitcoin’s (BTC) long-wick candles from October 10 show that the bears are selling higher, but they have not been able to push the price below the $52,920 breakout level. Aggressive buying on October 11 pushed BTC price above the October 10 high of $56,561.31 and paved the way for a $60,000 rally. On the technical side, the ascending 20-day EMA ($50,196) and the RSI in the overbought zone suggest that the bulls are in control. If the bulls push the price above $60,000, BTC price could struggle with its ATH level of $64,854. If the buyers break this hurdle, the bullish momentum could increase further. The first sign of weakness for BTC bulls will be a close below the breakout level at $52,920. This will show that traders are booking profits at higher levels. BTC bears will then try to push the price below the 50-day SMA ($47,727) for an opportunity.
Ethereum (ETH) technical analysis
Ethereum price dropped sharply on Oct. 10, but bulls took aggressive buying on Oct. 11 to the 20-day EMA ($3,369) and kept ETH price from bottoming out. If the bulls can close the price above the neckline, an inverse head and shoulders pattern will be completed on the ETH chart. This reversal pattern has a target of $4,657. However, the bears are likely to form a strong resistance at $4,027.88 and $4,372.72. This will negate the bullish view if the price breaks down from the overhead resistance and dips below $3,351. According to the analyst, ETH price may later decline to psychological support at $3,000.
Binance Coin (BNB) technical analysis
BNB price broke below the 50-day SMA ($425) on October 8 and closed. The bulls tried to pull the price back above the 50-day SMA on October 9 but failed. This led to the selling of short-term traders. Later, the BNB price dropped below the 20-day EMA ($409) on October 10, but the bears failed to seize the opportunity. Strong buying at the lows pushed the price above the 20-day EMA on Oct. If the bulls can push the price above the 50-day SMA, BNB price could rise to the neckline of the pattern. A close above this sink will complete an inverted head-and-shoulders pattern. BNB price could then rally to $518.90 and then reach the $554 formation target. Conversely, if the price breaks from the 50-day SMA or the neckline and breaks below $383, the next stop could be at $320.
ADA bulls struggle intensely with two critical supports
ADA price often follows a symmetrical triangle that acts as a continuation pattern. If the bears sink and hold the price below the support line of the triangle, the correction may continue. On the technical side, the 20-day EMA ($2.24) and the RSI just below the midpoint indicate the indecision of the bulls and bears. If the bulls fail to cover the $1.93 drop, ADA price could slide back to $1.60. Alternatively, if the price bounces back from 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 are successful, the ADA price could rise to $2.47 and then reach $2.80.
XRP gains upward momentum in BTC rally
Ripple (XRP) is trading in a tight range, while closing above the 50-day SMA on October 9 caused the price to unravel to the upside. However, the long wick on the October 10 candlestick indicates that the bears are holding the minor resistance at $1.24. If the bulls don’t give up too much from the current level, the probability of a break above $1.24 could increase. On the technical side, the 20-day EMA ($1.06) is rising marginally and the RSI is above 60, giving it an edge for buyers. A break and close above $1.24 could push XRP price towards $1.41. This could be a tough hurdle to overcome but if it is cleared, the bulls are aiming for $1.66. This bullish view will be invalidated if the price drops and dips below the 20-day EMA. This could push the price to $1 and then to the 100-day SMA ($0.93).
Solana (SOL) technical analysis
The weak bounce of Solana (SOL) price from the 20-day EMA (151 high) on October 8 and 9 indicates high demand on the buyer’s side. Also, supply exceeded demand on Oct. 10, and the price fell below the 20-day EMA. The bulls will now try to defend the 50-day SMA ($141). They will have to push and sustain the price above the downtrend line to signal that the selling pressure is easing. The bullish momentum could then start with a breakout and close above the 61.8% Fibonacci retracement level at $177.80. Conversely, if the price declines and dips below the 50-day SMA, SOL price could drop to the $116 strong support. This is an important level for the bulls to defend because if it is broken $90 awaits the SOL at the 100-day SMA.
Dogecoin bulls remain silent on BTC rally
Although Dogecoin (DOGE) bulls defended $0.24 on October 8 and 9, they were unable to push Dogecoin above this level. This indicated that demand was drying up at higher levels. The bears took advantage of this situation to push the price below the moving averages on October 10. If the bulls fail to push the price back above the MAs quickly, DOGE price could drop into the $0.21 to $0.19 support zone. The bears will have to break this support zone to gain the upper hand. On the contrary, if the price rises and breaks above the MAs, the bulls will make another attempt to push the price above the downtrend line. If they do, DOGE could start an upward move to $0.32 and later to $0.35.
Polkadot (DOT) technical analysis
Polkadot (DOT) price has been hovering between $25.50 and $38.77 in recent days. The price dropped from $37.45 on Oct. 10, which indicates that the bears are holding the overhead resistance. On the technical side, the gradually rising MAs and the RSI in the positive zone point to a modest advantage for buyers. A break and close above $38.77 will be the first sign of a resumption of the upward move. The formation target of the breakout from the rectangular pattern is 52.04 dollars. Alternatively, if the bears pull the price below the MAs, the DOT price could extend its stay in the range for a few more days.
Terra (LUNA) technical analysis
LUNA price dropped from $48.56 on Oct. 8, suggesting that the bears are aggressively guarding the overhead resistance at $50. The failure of the bulls to rise above the overhead resistance may have caused short-term traders to post profits. LUNA price then dropped below $39.64 on October 10 and closed. The bulls’ efforts to retrace the level met with strong selling on October 11, indicating that the sentiment has turned negative and traders are closing their positions on every minor rally. The next support on the downside is at $35.58 and if it breaks below this level, the drop could extend to $32.50. Conversely, if the price rises from the current level and rises above the 20-day EMA, the bulls may again try to push the LUNA above the overhead resistance.
Uniswap (UNI) technical analysis
Uniswap (UNI) price broke and closed below $24.45 on Oct. 10, but the bulls are trying to defend $23.76. Buyers’ target now could be a close above the 50-day SMA ($25.05). If they are successful, UNI price could rise to the neckline of the inverted head-and-shoulders pattern. The bullish momentum could increase if buyers push and sustain the price above this resistance. According to the analyst, INU could then start its rise towards the formation target at $36.98. Contrary to this assumption, if the bears pull the price below the 100-day SMA, the UNI bears will target $22. This is an important level for the bulls to defend because if breached, selling could intensify and drop to $18.
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