Bitcoin (Bitcoin) Has fallen below the psychological support level of $60,000.Although this seems to be negative in the short term, the price movement has Continue to reflect its trend in 2017. If this similarity persists for the rest of the year, Bitcoin bulls may join the 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 Bitcoin’s price trend continues to follow the S2F model, analysts believe that it may rebound to US$100,000 to US$135,000 by the end of the year.
Although Bitcoin has received the most attention, the cryptocurrency exchange Okcoin stated in a recent report that institutional investors’ Appetite for non-bitcoin crypto assets It has been growing. The report stated that 53% of the purchases by institutional investors in September were altcoins.
Is Bitcoin’s current decline a buying opportunity or the beginning of a deeper correction? How are altcoins expected to react? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin failed to retest the upper resistance zone of $64,854 to $67,000 on October 25, which may prompt short-term traders to profit. This pulled the price down to the strong support of the 20-day exponential moving average (EMA) ($58,948).
A breakout and close below the 20-day moving average will be the first sign that the bullish momentum may be waning. If the bulls fail to recover levels quickly, the selling may accelerate and the BTC/USDT pair may fall to $52,920.
The relative strength index (RSI) has dropped to the midpoint, and the 20-day EMA has flattened, indicating that supply and demand are in balance.
If the currency pair declines and stays below the 50-day simple moving average (SMA) ($51,556), this advantage will benefit the bears. On the other hand, a breakthrough to a record high will indicate that the bulls have regained control of the situation.
The bulls are trying to resume the upward trend of Ether (Ethereum) On October 26th and 27th, the price cannot be maintained above 4,200 USD. This shows that the bears are active at a higher level.
Sellers have pulled the price to the 20-day moving average ($3,869), which is an important support that deserves attention. The strong rebound of the 20-day moving average will indicate that market sentiment is still optimistic and traders are buying on dips. The bulls will try again to resume the uptrend.
Conversely, if the 20-day EMA breaks, it indicates that the trader may be booking profits and there is an oversupply. The bears will then try to pull the price to the 50-day moving average ($3,488).
Binance Coin (Bitcoin) Fell from the above resistance and broke below the 20-day moving average ($462) today. This is the first sign that bullish sentiment may be waning.
The long tail on today’s candlestick indicates that the bulls are trying to defend the neckline of the reverse head and shoulders pattern.
If they succeed, the BNB/USDT currency pair may try again to rebound to the upper resistance level of 518.90 USD. A break and close above this resistance level may indicate the resumption of the uptrend.
Conversely, closing prices below the neckline may pull the price to the 50-day moving average ($423). If this support is broken, the next stop may be $392.20. A flat moving average and an RSI close to the midpoint do not indicate that the bulls or bears have a clear advantage.
Cardano (Have) The narrow trading between the 20-day moving average ($2.15) and the support line of the symmetrical triangle broke below the downside on October 27. This shows that the bears have established their dominance.
Sellers pulled the price below $1.87 on October 27, but the long tail on the candlestick indicates that the bulls are trying to defend the support level. The recovery attempt may face strong resistance at the 20-day moving average.
If the price retreats from the 20-day moving average, the bears will try again to break the $1.87 support level. If this happens, the ADA/USDT currency pair may continue to move down to the 1.58 USD pattern target.
The bulls will have to push the price higher and maintain it above the triangle resistance line to invalidate negative views.
Solana (SOL) broke the upper resistance at $216 on October 25, but the bulls were unable to sustain the break. This may attract short-term traders to take profits and pull the price to the 20-day moving average ($177).
The long tail of the candlestick on October 27 indicates that market sentiment is still optimistic, and the bulls are buying the 20-day moving average on dips. Buyers will now try again to push the price above the upper resistance.
If they succeed, the SOL/USDT pair can resume the upward trend, with the next target target of USD 239.83. Contrary to this assumption, if the bears pull the price below $171.47, the currency pair may extend its decline to the trend line. A break below this support level will indicate a possible change in trend.
The bulls pushed Ripple (Ripple) Is higher than the downtrend line on October 26, but it can be seen from the long wick of the candlestick that day that it cannot maintain a higher level. This could put aggressive bulls into trouble, leading to a strong sell-off on October 27th.
The closing price below the support level of 1 US dollar will complete the descending triangle pattern, which may pull the price down to the strong support area of US$0.88 to US$0.85. If this area fails to prevent the decline, the XRP/USDT pair may extend the decline to the pattern target of $0.77.
The 20-day moving average ($1.08) was flat, but the RSI fell to the negative zone, indicating that the bears are returning strongly. If the bulls push the price higher and maintain it above the downtrend line, this negative perception will be invalid. This may clear the way for a possible rebound to $1.24.
DOT / USDT
Polkadot (DOT) failed to break the upper resistance at $46.39 on October 26, which may prompt short-term traders to sell. This pulled the price down to the strong support level of $38.77 on October 27th.
The long tail on the October 27 candlestick shows that the bulls are vigorously defending the support level. If buyers push the price above US$46.39, the DOT/USDT currency pair may continue to rise and challenge the all-time high of US$49.78.
Or, if the bulls fail to clear the obstacles above, the currency pair may consolidate between US$46.39 and US$38.77 for a few days. A break and close below $38.77 may herald the beginning of a deeper correction to the 50-day moving average ($35.14).
Dogecoin (dog) The fall from $0.28 on October 24 indicates that traders are closing their positions on rallies. The bulls again tried to push the price above the resistance level above $0.27 on October 26, but failed.
After the bears pulled the price below the 20-day moving average ($0.24), the selling accelerated on October 27. This resulted in a drop of US$0.21 to US$0.19 near the strong support zone. The long tail on the candlestick of the day indicates that traders continue to defend the support zone.
The 20-day moving average is flattening out, and the RSI is slightly lower than the midpoint, indicating that there may be range fluctuations in the near future. The next trend trend may start from a breakthrough of US$0.28 or closing below US$0.19.
SHIBA INU (SHIB) is in a strong upward trend. The long wick on the candlestick on October 24 shows that the bears are trying to stop the rise at $0.00004465, but they cannot withstand the selling pressure. The purchase resumed on October 25, and the meme coin resumed its march north.
The strong rise has pushed the RSI close to the 90 level, which indicates that the rebound may be excessive in the short term. However, this does not guarantee the start of the correction, because the RSI had reached above 93 on October 6th before the pullback occurred.
The bulls pushed the SHIB/USDT pair above the 161.8% Fibonacci extension level of 0.00006531 USD. If the price stays above this level, the next stop may be a 200% extension level at $0.00007586.
Vertical rebounds are rarely sustainable, they usually end in a waterfall descent. Therefore, chasing higher prices after the recent rebound may be risky.
The LUNA token of the Terra protocol broke through the upper resistance level of $45.01 on October 26, but judging from the long wick on the candlestick that day, the bulls could not maintain a higher level.
The bears felt the opportunity and pulled the price below the support of $39.75 on October 27, but a small positive is that the bulls bought the 50-day moving average ($38.16) downtrend. If the price stays above US$39.75, the bulls may try again to push the LUNA/USDT pair towards US$45.01.
On the contrary, if the price falls below the 50-day moving average, the currency pair may fall to the strong support area of US$34.86 to US$32.50. This is an important area for bulls to defend because a break below this area may accelerate selling.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.