Strong buying activity in Bitcoin exchange-traded funds (ETFs) indicates that investors are anticipating a breakout to new all-time highs for the Bitcoin market. But will altcoins follow suit?
On 18 October, Bitcoin (BTC) surged above the immediate resistance level of $68,500, suggesting the continuation of its upward trend. This recent rally has been driven by robust buying, with U.S.-based Bitcoin ETFs experiencing significant inflows. Data from Farside Investors shows inflows of $2.1 billion over the last five trading days, bringing the total net inflows to over $20 billion, as reported by Bloomberg’s senior ETF analyst, Eric Balchunas.
Despite this bullish momentum, analysts remain divided on Bitcoin’s near-term prospects. Some caution that the rising open interest in Bitcoin futures could trigger a sharp pullback. Conversely, Coinglass has pointed out that the growing open interest may signal a major price movement on the horizon.
As Bitcoin’s price nears an all-time high, traders may take a cautious approach. Bitcoin has been in a sideways price action for several months, so bears are likely to sell aggressively as the price nears the resistance of the range.
If the price remains in the upper half of the $54,000 to $73,777 range, the sentiment could improve, benefiting the altcoins. Let’s analyze the charts of the top 10 cryptocurrencies to spot the crucial support and resistance levels.
Bitcoin (BTC) Market Analysis
After a minor pullback on Oct. 17, Bitcoin bulls have reasserted their supremacy by pushing the price above $68,500 on Oct. 18.
BTC/USDT daily chart. Source: TradingView
The BTC/USDT pair is likely to reach $70,000 and then $72,000. Sellers are expected to fiercely defend this zone, but if the bulls prevail, the pair could surge to an all-time high at $73,777. This level is again expected to act as a formidable hurdle.
Any pullback is likely to find support at the 20-day exponential moving average ($64,268). Sellers will have to yank the price below the 20-day EMA to weaken the bullish momentum. The short-term trend will turn bearish on a break below $60,000.
Ether (ETH) Market Analysis
The Ether market has been trading near the triangle’s resistance line for the past five days, signalling that the bulls are maintaining their pressure.
ETH/USDT daily chart. Source: TradingView
If buyers thrust the price above the triangle, the ETH/USDT pair could rise to $2,850. This level may act as a resistance, but on the way down, if the price rebounds off the 20-day EMA ($2,523), it will suggest a change in trend. The pair may then attempt a rally to $3,400.
This bullish view will be invalidated in the near term if the price turns down and breaks below the moving averages. Such a move will suggest that the pair may remain inside the triangle for a few more days.
BNB Market Analysis
BNB is gradually climbing toward the overhead resistance of $635, where the bears are likely to step in.
BNB/USDT daily chart. Source: TradingView
The gradually upsloping moving averages and the relative strength index (RSI) in the positive territory give a slight edge to the buyers. If bulls pierce the $635 resistance, the BNB/USDT pair could rally to $722 and then to $810.
Contrarily, if the price turns sharply from the current level or the overhead resistance and breaks below the moving averages, it will signal that the pair may spend some more time inside the $460 to $635 range.
Solana (SOL) Price Analysis
Solana is trying to take support at the 20-day EMA ($148), indicating that the bulls are viewing the dips as a buying opportunity.
SOL/USDT daily chart. Source: TradingView
The bulls will make one more attempt to propel the price above the $164 overhead resistance. If they succeed, the SOL/USDT pair will complete an ascending triangle pattern. This bullish setup could start a rally to $189.
The 20-day EMA is the immediate support, and below that the uptrend line. Sellers will have to yank the price below the uptrend line to invalidate the bullish pattern. The pair may then slump to $127.
XRP Price Analysis
Buyers pushed XRP above the moving averages on Oct. 17 but could not sustain the higher levels.
XRP/USDT daily chart. Source: TradingView
The uptrend line is the nearby support to keep an eye on. If the price breaks below the uptrend line, it will suggest that the bulls have given up. The pair could then fall to the critical support at $0.50.
On the contrary, if the price turns up from the current level or rebounds off the uptrend line, it will suggest that the bulls are buying on dips. That will increase the likelihood of a break above the 50-day simple moving average ($0.56). The XRP/USDT pair may then attempt a rally to $0.64.
Dogecoin (DOGE) Price Analysis
Dogecoin rose above the symmetrical triangle pattern on Oct. 18, indicating that the bulls have overpowered the bears.
DOGE/USDT daily chart. Source: TradingView
If the price holds above the triangle, the DOGE/USDT pair could rally to $0.17 and subsequently to the pattern target of $0.19.
Contrary to this assumption, if the price turns down and re-enters the triangle, it will signal that the markets have rejected the breakout. The pair may fall to the 20-day EMA, an important near-term support to watch out for. If the price bounces off the 20-day EMA, the bulls will again attempt to start the up move.
Toncoin (TON) Price Analysis
Buyers are finding it difficult to push Toncoin above the moving averages, but a minor positive is that the bulls have not ceded ground to the bears.
TON/USDT daily chart. Source: TradingView
That improves the prospects of a rally above the moving averages. If that happens, the TON/USDT pair could rally to $6, where the bears may again mount a strong defence. However, if buyers bulldoze their way through, the pair may rally to $7.
On the downside, if the $5 level fails to hold, the pair may drop to the $4.72 to $4.44 support zone. Buyers are expected to protect this zone with all their might because a break below it will complete a bearish head-and-shoulders pattern. The pair may then descend to $3.50.
Cardano (ADA) Price Analysis
Cardano has been trading in a tight range between $0.33 and $0.37 for the past few days, indicating indecision between the bulls and the bears.
ADA/USDT daily chart. Source: TradingView
If the $0.33 support cracks, the ADA/USDT pair could retest the crucial support at $0.31. The bulls are expected to defend this level with strength, but if the bears prevail, the pair may skid to $0.27.
Contrarily, if the price rises from the current level and breaks above $0.37, it will suggest that the bulls are attempting a comeback. The pair could then rally to $0.40. This level may be a solid hurdle, but if the bulls overcome it, the pair may rise to $0.45.
Avalanche (AVAX) Price Analysis
Avalanche turned down from the resistance line of the symmetrical triangle pattern on Oct. 14, but the bulls are trying to defend the 20-day EMA ($27.30).
AVAX/USDT daily chart. Source: TradingView
If the price rebounds off the 20-day EMA with strength, the bulls will again attempt to drive the AVAX/USDT pair above the resistance line. If they can pull it off, the pair could rally to $37 and then to $42.
Alternatively, if the price breaks below the 20-day EMA, the bears will try to sink the pair to the support line. A break and close below the triangle will open the doors for a possible decline to $17.
Shiba Inu (SHIB) Price Analysis
Shiba Inu has been trading just below the $0.000020 overhead resistance, indicating that the bulls have maintained their pressure.
SHIB/USDT daily chart. Source: TradingView
The 20-day EMA ($0.000017) is sloping up, and the RSI is in positive territory, indicating the possibility of a breakout. If the price closes above $0.000020, the SHIB/USDT pair will complete an inverted H&S pattern. This reversal setup has a target objective of $0.000028.
If bears want to prevent the upside, they will have to swiftly pull the price below the 20-day EMA. If they do that, the pair may drop to the 50-day SMA ($0.000015), extending its stay inside the $0.000012 to $0.000020 range.
