Cryptocurrency investors continue to watch the reaction of the Bitcoin price from the 20-day MA. Besides, large-volume altcoin projects SOL AVAX, ALGO and AXS are preparing for higher levels. We are starting with developments from the general market, 4 altcoins to watch this week will be our next stops.
What happened in the cryptocurrency market?
Bitcoin continues to face strong selling as it tries to defend the psychological $60,000 support. Some analysts have pointed out that after the successful launch of funds traded on the Bitcoin exchange last week, a correction could occur as traders continue to take profits. Experienced in the crypto market:
- The launch of the Bitcoin Futures product by the Chicago Mercantile Exchange on December 18, 2017, ended a strong bull run and marked the beginning of a multi-year bear market.
- A similar collapse of lesser magnitude followed the Coinbase IPO (COIN) on April 4, 2021.
According to analysts, if “buy on rumor, sell on news” is repeated once again, it may put the markets at risk.
However, some analysts say the pullback will not change the overall picture. “There are zero instances where Bitcoin has broken previous ATH levels and failed to continue higher,” Decentrader analysts said. Analysts also expect the Bitcoin bull run to continue with a possible target of $72,000 followed by $88,000. Data from Bybt shows that Bitcoin reserves have risen to 400,000 Bitcoins on Binance, suggesting that traders may consider closing their positions. Can Bitcoin make a strong comeback that raises sentiment in the crypto market? We take a look at analyst Rakesh Upadhyay’s technical analysis to answer…
Bitcoin (BTC) technical analysis
Bitcoin price faced a strong bear hurdle in the $64,854 to $67,000 region. An important level to watch out for is $58,315. If the price bounces off this level strongly, it will indicate that the sentiment remains positive and traders are buying on the dips. The bulls will then make an attempt to push the price above the general zone. If they can achieve this, the Bitcoin price could resume its uptrend. Later, it could rise to the formation target of $84,533.12.
On the technical side, the ascending MAs and the RSI in the positive zone indicate that the buyers prevail. Contrary to this assumption, if the price declines and dips below the 20-day EMA, a break above $64,854 would suggest a bull trap. BTC could then continue to the 50-day SMA ($50,927). Also, Bitcoin is correcting inside a descending channel. The strongest support is at $58,739.17 and if this level is broken, it could drop to the support line of the channel. This is an important level for the bulls to defend because a break below it could intensify the sale.
The 20-day EMA has bounced back and the RSI has dived into negative territory, suggesting that the bears have prevailed. This negative view will be invalidated if the price rises above the channel and MAs. Such a move will increase the likelihood of a retest of the resistance zone.
Altcoin Solana (SOL) price approaches ATH test
SOL’s long-wick candles on October 22 show that the bears are aggressively defending the overhead resistance at $216. The altcoin formed an intraday candlestick pattern on October 23, showing the indecision between the bulls and bears. This uncertainty was resolved to the downside today and the price could decline to the breakout level at $177.79. If the price bounces back from this level, it will show that sentiment continues to rise and traders are buying on the dips. The bulls will then try to push the price back above the ATH level of $216. If they are successful, SOL price could rally to $239.83. On the technical side, the rising 20-day EMA ($168) and the RSI in the positive zone are showing the advantage for buyers. This positive view will be rejected if the price continues to decline and dips below the 20-day EMA. According to the analyst, the SOL price can then be drawn to the trendline of the triangle.
Altcoin SOL bears pulled the price below the 20-EMA on the 4-hour chart. If the sellers pull the price below the 20-day EMA, it will indicate that the bullish momentum is weakening. The SOL could then slide to $177.79 where buying could occur. The first sign of strength will be a break and close above the downtrend line. Such a move suggests that traders are buying on the dips. This could push the price towards $205.78 and if this resistance is surpassed, it could reach the ATH level.
Avalanche (AVAX) technical analysis
AVAX price broke and closed above the descending channel on October 21, suggesting that the correction may be over. The bulls will now try to continue the uptrend. The long wick candles of October 22 and 23 show demand drying up at higher levels. AVAX price MAs may drop to averages. A strong rebound from this support will indicate that traders continue to buy on the dips. The bulls will then make an attempt to continue the upward move by pushing the price above $69.18. If they are successful, AVAX price could rise to $73.41 and then test the ATH level at $79.80. Contrary to this assumption, if the price dips below the MAs, AVAX could drop to strong support at $51.04. If this level also gives way, the next stop may be the support line of the channel.
The bulls pushed the price above the downtrend line of the descending triangle, invalidating the bearish setup. However, the recovery was short-lived as the bears pulled the price below the 20-day EMA. This suggests selling at higher levels. In this direction, AVAX price could drop to the 50-day SMA. If this support is broken, the bears will try to push the price back into the triangle. If they are successful, the break above the triangle would suggest a bull trap. On the contrary, if the price rises from the current level or bounces off the downtrend line, it will show bulls piling up on the dips. Buyers will then try to push the price above $69.18. A break and close above this resistance will indicate that the bulls have the upper hand. According to the analyst, AVAX price could then start its journey towards the ATH level.
Altcoin Algorand (ALGO) price prepares for $2.55 test
cryptocoin.com ALGO, which we share the analysis of, has been trading within a symmetrical triangle for the last few days. The price has dropped from the resistance line of the triangle today, suggesting that the bears do not want to let the bulls get in the way. If ALGO price breaks below the MAs, it could decline to the support line of the triangle. This is an important level for the bulls to defend because if it breaks, the bears will try to push the price down to $1.51 and then $1.20. Alternatively, if the price rises from the current level or support line and rises above the triangle, it indicates that the bulls are in control. ALGO could later rise to $2.22 and then retest the ATH level of $2.55.
Altcoin ALGO price is also stuck inside the triangle, suggesting it may be ready for a strong directional move. The diagonal MAs and the RSI near the midpoint offer neither the bulls nor the bears a clear advantage. A break above the triangle will indicate that the bulls are absorbing the sell-off by the bears and this could set the pair up for a resumption of the upward move. Conversely, a break below the triangle indicates that supply exceeds demand and this could initiate a deeper correction.
Axie Infinity (AXS) technical analysis
AXS price formed a symmetrical triangle pattern showing indecision between bulls and bears. It is very difficult to determine the direction from this level, according to the analyst, only a triangular continuation pattern can be followed. If the price breaks out of the support line, AXS bulls will make another attempt to push out of the triangle. If they are successful, it can be said that the uptrend has started again. AXS price could retest the ATH level of $155.27 later. The bullish momentum could increase if buyers clear this overall hurdle. AXS could then rise to its formation target at $186.05. Conversely, a breakout and closing below the triangle would be the first sign of a deeper correction. According to the analyst, AXS could decline to the $103.22 break and then the $94.67 breakout level.
On the 4-hour chart, the MAs have flattened and the RSI is fluctuating between 40 and 62. This indicates an equilibrium situation where traders are buying low at $115 and selling near $140. A break and close below $115 could signal a resolution to the downside. This could push the price towards the $90 formation target. Conversely, a break above $140 will signal the bulls are back in the game. AXS could then rally to $155.27 followed by the $165 pattern target.
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