Bitcoin (BTC) fell below psychological support at $ 60,000. While this seems negative in the short term, the price movement continues to reflect its movement in 2017. If the similarity continues for the rest of the year, Bitcoin bulls can join a party.
PlanB, the creator of the popular Bitcoin Stock-to-Flow (S2F) model, recently announced in a tweet that the second phase of the Bitcoin bull market has begun. If price action continues to follow the S2F pattern, the analyst believes Bitcoin could soar to between $ 100,000 and $ 135,000 by the end of the year.
While Bitcoin has caught the attention of major players, Okcoin Exchange said in a recent report that institutional investors’ appetite for non-Bitcoin crypto assets is growing. The report says that 53% of institutional purchases in September were altcoins.
Is Bitcoin’s current decline a buying opportunity or the beginning of a deeper correction? How will altcoins react? Let’s analyze the top 10 cryptocurrency charts to find out.
Bitcoin was unable to retest the resistance area between $ 64.854 and $ 67,000 on October 25, which may have spurred short-term traders to profit-taking. That dragged the price onto the strong support at the 20-day EMA (58,948).
BTC / USDT daily chart | Source: TradingView
A break and close below the 20-day EMA are the first signs that the upward momentum may weaken. If the bulls don’t get back to this level quickly, sales could intensify and the BTC / USDT pair slide to $ 52,920.
The relative strength index (RSI) has fallen to the middle and the 20-day EMA is flattening, suggesting an equilibrium between supply and demand.
That advantage will tip to the bears if the pair slips below the 50-day SMA ($ 51.556) and holds. On the other hand, a break above the new all-time high will show that the bulls are back in position.
The bulls attempted to resume the uptrend in Ether (ETH) on October 26th and 27th but were unable to keep the price above $ 4,200. This shows that the bears are active at higher levels.
ETH / USDT daily chart | Source: TradingView
The sellers pushed the price towards the 20-day EMA ($ 3,869), which is important support to watch. A strong rebound from the 20-day EMA will show sentiment remains positive and traders are buying on the downside. After that, the bulls will try again to continue the uptrend.
Conversely, a breach of the 20-day EMA signals that traders are taking profits and that supply is outstripping demand. The bears will then attempt to pull the price towards the 50-day SMA ($ 3,488).
Binance Coin (BNB) was rejected by overhead resistance and broke below the 20-day EMA ($ 462) today. This is the first sign that bullish sentiment may be easing.
BNB / USDT daily chart | Source: TradingView
The long tail of today’s bar shows that the bulls are trying to defend the section of the inverse head and shoulders pattern.
If successful, the BNB / USDT pair could attempt to rally again to resistance at $ 518.90. A breakout and close above this resistance could signal the continuation of the uptrend.
Conversely, a closing price below the neckline can push the price to the 50-day SMA (USD 423). If this support is broken, the next stop could be at $ 392.20. The flat moving averages and the RSI near the middle show an equilibrium between bulls and bears.
Cardano (ADA) trading with a narrow range between the 20-day EMA (USD 2.15) and the support line of the symmetrical triangle broke down on October 27th. This suggests that the bears have confirmed their supremacy.
Daily ADA / USDT Chart | Source: TradingView
Sellers pulled the price below $ 1.87 on October 27, but the long tail of the candlestick bar shows that the bulls are trying to defend support. The recovery attempt should meet strong resistance at the 20-day EMA.
If the price drops off the 20-day EMA, the bears will try again to break the USD 1.87 support. In this case, the ADA / USDT pair may continue the downtrend towards the target of the pattern at $ 1.58.
The bulls will need to push and hold price above the triangle’s resistance line to break this negative view.
Solana (SOL) broke the USD 216 resistance on October 25, but the bulls were unable to sustain the breakout. This could have resulted in profit-taking by short-term traders, which pushed the price down to the 20-day EMA ($ 177).
Daily SOL / USDT chart | Source: TradingView
The long tail of the October 27 candle shows that sentiment remains positive and the bulls are buying as the price falls to the 20-day EMA. Now buyers will try again to push the price above the overhead resistance.
If this succeeds, the SOL / USDT pair can continue its uptrend with the next target at $ 239.83. Contrary to this assumption, if the bears push the price below $ 171.47, the pair can extend the decline to the trendline. A break below this support signals a possible turnaround.
The bulls pushed Ripple (XRP) above the downtrendline on October 26th but failed to hold the higher levels, as evidenced by the long wick on the intraday candle. This could catch some aggressive bulls and lead to strong selling on October 27th.
XRP / USDT daily chart | Source: TradingView
A close below the $ 1 support will complete a descending triangle pattern that can pull price into the strong support area at $ 0.88-0.85. If that zone fails to stop the decline, the XRP / USDT pair can extend the decline to target the pattern at $ 0.77.
The 20-day EMA ($ 1.08) is flat, but the RSI has plunged into negative territory, showing the bears are back. This negative view will be invalidated if the bulls push and hold the price above the downtrend line. That could pave the way for a rally to $ 1.24.
Polkadot (DOT) failure to break above the USD 46.39 resistance on October 26th may have led short-term traders to sell. This dragged the price to the strong support at $ 38.77 on October 27th.
DOT / USDT daily chart | Source: TradingView
The long tail on the October 27 bar shows that the bulls are aggressively defending the support area. If buyers push the price above $ 46.39, the DOT / USDT pair may continue to rise and challenge the all-time high of $ 49.78.
If the bulls fail to break the overhead barrier, the pair can consolidate between $ 46.39 and $ 38.77 for a few days. A break and close below $ 38.77 could signal the start of a deeper correction in the 50-day SMA ($ 35.14).
Dogecoin (DOGE) fell from $ 0.28 on October 24th, indicating that traders will liquidate their positions on a rebound. The bulls tried again to push the price above the USD 0.27 resistance on October 26th but failed.
Daily DOGE / USDT Chart | Source: TradingView
Selling accelerated on October 27 after the bears pushed the price below the 20-day EMA ($ 0.24). This caused a decline towards the strong support area of $ 0.19 to $ 0.21. The long tail of the intraday bar shows that traders are still defending the support zone.
The 20-day EMA has flattened and the RSI is just below the middle, indicating the possibility of near-term range action. The next trend move could begin on a breakout above $ 0.28 or a close below $ 0.19.
SHIBA INU (SHIB) is in a strong uptrend. The long wick on the October 24th candle shows that the bears managed to stop the upward momentum at $ 0.0004465 but were unable to maintain selling pressure. Buying activity resumed on October 25th and the meme coin continued its march north.
Daily SHIB / USDT chart | Source: TradingView
The sharp move higher has brought the RSI near the 90s, suggesting that the recovery may be overdone in the short term. However, this does not guarantee the start of a correction as the RSI hit above 93 on October 6th before a pullback occurred.
The bulls pushed the SHIB / USDT pair above the 161.8% Fib expansion at $ 0.00006531. If the price holds above this level, the next stop could be the 200% Fib expansion at $ 0.00007586.
Vertical rallies are rarely sustainable and often end in a waterfall-like fall. Hence, tracking prices at higher levels can be risky.
Terra (LUNA) broke the USD 45.01 resistance on October 26, but the bulls were unable to hold the higher levels as indicated by the long wick on the intraday candle.
Daily LUNA / USDT chart | Source: TradingView
Sensing the opportunity, the bears pulled the price below the $ 39.75 support on October 27, but on a small positive, the bulls bought in on a decline to the 50-day SMA ($ 38.16). If the price holds above $ 39.75, the bulls could try again to push the LUNA / USDT pair towards $ 45.01.
Conversely, if the price falls below the 50-day SMA, the pair may fall into the strong support area at $ 34.86 – $ 32.50. This is an important area for the bulls to defend as a break below it could result in selling.
You can see the coin prices here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
SN_Nour
According to Cointelegraph
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…
With the crypto market reaching new peaks, many are eager to discover digital currencies poised…
XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…
Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…
There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…
Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…
This website uses cookies.