Bitcoin (BTC) market has been trading within a relatively stable range, raising the question of whether this sideways price movement will entice altcoin traders to initiate new positions.
In asset trading, a significant uptrend tends to attract traders, whereas a lacklustre price performance often prompts investors to remain cautious. Over the past few months, Bitcoin has predominantly remained within a specific price range, which might explain the decline in spot trading volumes. As of October 11th, Bloomberg reported a 52% decrease in Coinbase’s spot trading volume for Q3 2023 compared to the same period in 2022.
While the short-term outlook remains uncertain, traders must stay vigilant because extended consolidation phases typically precede sharp price movements. The challenge, however, lies in accurately predicting the direction of such a breakout. Notably, Bitcoin has stayed above the $25,000 mark in recent months, potentially increasing the likelihood of an upward price breakout.
In a recent interview on CNBC, investing legend Paul Tudor Jones said that he is not bullish on the equities markets as he believes that an escalation in the Israel–Hamas conflict may bring about a risk-off sentiment. If that happens, it will be bullish for gold and Bitcoin, Jones added.
Wil bears sink Bitcoin below the immediate support, and could that cause a further? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
Bitcoin sliced through the 20-day exponential moving average ($27,148) on Oct. 11, but the bears could not tug the price below the 50-day simple moving average ($26,634).
BTC/USDT daily chart. Source: TradingView
The bulls successfully defended the 50-day SMA on Oct. 11 and Oct. 12, but they are struggling to start a rebound. This suggests a lack of demand at higher levels.
The bears will next attempt to sink the price below the 50-day SMA and come out on top. The BTC/USDT pair could retest the strong support at $26,000 if this level allows. This level is likely to witness aggressive buying by the bulls.
A rally above the 20-day EMA will be the first indication of strength. The pair could then climb to the stiff overhead resistance at $28,143. This is a significant level to watch out for because a close above it could signal the start of a short-term up-move.
Ether (ETH) Market Analysis
Ether dipped to critical support at $1,531 on Oct. 12, but a minor positive is that the bulls successfully held this level.
ETH/USDT daily chart. Source: TradingView
The RSI shows signs of a positive divergence, indicating that the bearish momentum may weaken. The bulls will try to push the price to the moving averages, where the bears are again likely to mount a strong defence.
If the price turns down sharply from the 20-day EMA ($1,606), it will suggest that bears remain in command. The ETH/USDT pair could then crumble below $1,531 and descend to $1,368.
Bulls will have to kick the price above the moving averages if they want to prevent the fall. The pair may climb to $1,746, where the bulls may again face strong selling by the bears.
BNB Market Analysis
BNB fell to strong support at $203, but the long tail on the candlestick shows that the bulls are protecting the level with force.
BNB/USDT daily chart. Source: TradingView
The bulls must quickly thrust the price above the moving averages and the downtrend line to indicate that the bears may be losing their grip. The BNB/USDT pair could start an up-move to $235 and later to $250.
On the contrary, if the price turns down from the moving averages, it will indicate that every minor rise is being sold. A break below the $203 support will complete a descending triangle pattern, which could start a downward move to $183.
XRP price analysis
XRP fell below the uptrend line on Oct. 11, indicating the bullish pressure is reducing. The drop suggests the price will continue oscillating between $0.41 and $0.56 for longer.
XRP/USDT daily chart. Source: TradingView
There is support at $0.46, but the XRP/USDT pair may tumble to the critical level at $0.41 if it cracks. The bulls are expected to buy this dip aggressively, which could keep the range-bound action intact.
On the upside, a break and close above the moving averages will be the first sign of strength. The buyers will then make one more attempt to drive the price to the overhead resistance at $0.56. A break and close above this level will indicate the start of a new potential uptrend.
Solana (SOL) price analysis
Solana slipped below the 20-day EMA ($21.72) on Oct. 12, indicating that the bears maintain their pressure.
SOL/USDT daily chart. Source: TradingView
Both moving averages have flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. The bears will try to strengthen their position by dragging the price below the 50-day SMA ($20.44). If they do that, the SOL/USDT pair could slump to $17.33.
On the other hand, if the price turns up and rises above $22.50, it will tilt the short-term advantage in favour of the buyers. The pair could then advance to the neckline of the inverse head-and-shoulders pattern.
Cardano (ADA) price analysis
Cardano has formed long tails on successive candlesticks since Oct. 9, but the bulls failed to start a recovery. This suggests a lack of demand at higher levels.
ADA/USDT daily chart. Source: TradingView
The ADA/USDT pair is near the $0.24 support, and the RSI shows signs of a positive divergence. This suggests that the selling pressure is reducing, and a relief rally is possible. The first stop on the upside is likely to be the moving averages. If this resistance is crossed, the pair may reach $0.27 and then $0.28.
Contrary to this assumption, if the price continues lower and skids below $0.24, it will indicate that the bears are in no mood to relent. That could clear the path for a fall to $0.22 and eventually to $0.20.
Dogecoin (DOGE) price analysis
Dogecoin has been trading below the $0.06 support since Oct. 9, suggesting that the markets have accepted the lower levels.
DOGE/USDT daily chart. Source: TradingView
The bears will try to sink the price to the vital support at $0.055. This level is likely to witness strong buying by the bulls. If the price rebounds off this level, the DOGE/USDT pair may temporarily consolidate between $0.055 and $0.06.
The downsloping moving averages and the RSI near the oversold zone indicate that bears have the upper hand. Bulls must quickly propel the price above the moving averages if they want to make a comeback. That could start a recovery to $0.07.
Toncoin (TON) price analysis
Toncoin has been in a corrective phase for the past few days. Profit booking by the traders pulled the price below the 50-day SMA ($1.98) on Oct. 12.
TON/USDT daily chart. Source: TradingView
The bulls are trying to reclaim the level and push the price back above the moving averages over the next few days. If they manage to do that, it will indicate that the break below the 50-day SMA may have been a bear trap. That could open the doors for a possible rise to $2.31.
Instead, if the TON/USDT pair turns down from the moving averages, it will suggest that the sentiment has turned negative and every relief rally is being sold into. That will increase the risk of a fall to $1.60.
Polkadot (DOT) price analysis
Polkadot continued its decline in the past few days and reached near the target objective at $3.50 on Oct. 12. This level is likely to act as a solid support.
DOT/USDT daily chart. Source: TradingView
On the way up, the 20-day EMA ($3.95) is crucial to watch. If the price turns down from the 20-day EMA, it will signal that traders are selling on relief rallies. That could enhance the prospects of a drop below $3.50.
Contrarily, if bulls drive and sustain the price above the 20-day EMA, it will indicate that the markets have rejected the lower levels. That may trap the aggressive bears, resulting in a short squeeze toward the downtrend line.
Polygon (MATIC) price analysis
Polygon continues to weaken toward the critical support at $0.49, indicating that the bulls are not risking a buy at higher levels.
MATIC/USDT daily chart. Source: TradingView
In a range, traders buy near the support and sell close to the resistance. In this case, the bulls will likely buy the dips to $0.49 with vigor. If the price rises from this level with strength, the MATIC/USDT pair may reach the moving averages.
If the price turns down sharply from the moving averages, it will increase the likelihood of a break below $0.49. If that happens, the pair could plunge to $0.45.
On the contrary, a rally above the moving averages will signal that the range-bound action may extend for a few more days.
