The Bitcoin (BTC) market price briefly surged above the $30,000 mark, leading to speculation about the potential for altcoins to do the same.
On Oct. 20, Bitcoin experienced a significant uptick, crossing the $30,000 threshold, suggesting a prevailing upward trend. This surge could be partly attributed to Grayscale Investments’ recent application for a new spot Bitcoin exchange-traded fund (ETF) submitted to the United States Securities and Exchange Commission (SEC), which may have catalysed bullish sentiment.
In another positive development within cryptocurrency, the SEC dismissed all allegations against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen. Given recent setbacks, this move raises expectations that the regulatory body might ease its enforcement actions against cryptocurrency entities.
With improving market sentiment, long-term Bitcoin holders have accumulated more cryptocurrency. According to data from Glassnode, a significant 76.2% of the available Bitcoin is now securely stored in long-term holdings. This accumulation could lead to a supply shortage in the market, which typically drives a bullish sentiment for Bitcoin’s price.
The question now arises: Can Bitcoin sustain its upward momentum and continue to rise? And will this positive momentum extend to altcoins as well? To gain insights, let’s delve into the charts of the top 10 cryptocurrencies.
Bitcoin (BTC) Market Analysis
Bitcoin broke and closed above the $28,143 resistance on Oct. 16, and the bulls held the level successfully during the retest on Oct. 17 and 18. This indicates that the buyers flipped the level into support.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average (EMA) ($27,769) has turned up, and the relative strength index (RSI) is in the overbought zone, indicating that the bulls have the upper hand. The buyers will try to sustain the price above $30,000 and challenge the stiff overhead resistance zone between $31,000 and $31,805. Sellers are expected to protect this zone with vigour.
Time is running out for the bears. To prevent the upside, they must yank the price back below $28,143 quickly. If they do that, the BTC/USDT pair could plummet to the 50-day simple moving average (SMA) ($26,882).
Ether (ETH) Market Analysis
The Ether market once again bounced off the strong support near $1,531, as seen from the long tail on the Oct. 19 candlestick. This shows that the bulls are fiercely defending the $1,531 support.
ETH/USDT daily chart. Source: TradingView
The repeated failure of the bears to break the $1,531 level is likely to attract buyers. The 50-day SMA ($1,613) may act as a hurdle, but if crossed, the ETH/USDT pair could pick up momentum and attempt a rally to $1,746.
Although the downsloping moving averages indicate an advantage to bears, the positive divergence on the RSI suggests that the negative momentum is reducing. The bears will return to the driver’s seat if they sink the price below $1,531.
BNB Market Analysis
BNB turned down from the downtrend line on Oct. 16, but a positive sign is that the bulls did not allow the price to dip below the 20-day EMA ($210). This indicates a change in sentiment from selling on rallies to buying on dips.
BNB/USDT daily chart. Source: TradingView
Buyers will try to drive and maintain the price above the downtrend line. If they succeed, the BNB/USDT pair could accelerate to $235 and extend the rally to $250. The bears are likely to mount a vigorous defence at this level.
The critical support to watch on the downside is the 20-day EMA, and the next is $203. A break and close below this level will open the doors for a possible decline to the next significant support at $183.
XRP price analysis
XRP turned down from the moving averages on Oct. 16, but the bears could not sink the price below the immediate support at $0.46. This suggests a lack of selling at lower levels.
XRP/USDT daily chart. Source: TradingView
The moving averages have flattened out, and the RSI is just above the midpoint. This suggests that the XRP/USDT pair may oscillate between $0.46 and $0.56 for some time. The pair may rally to the overhead resistance at $0.56 if the price stays above the moving averages.
On the contrary, if the price falls below the moving averages, it will increase the possibility of a drop to $0.46. The next trending move will likely begin above $0.56 or below $0.41.
Solana (SOL) price analysis
Solana’s SOL soared and closed above the neckline of the inverse head-and-shoulders (H&S) pattern on Oct. 19, completing the bullish setup.
SOL/USDT daily chart. Source: TradingView
The buying continued on Oct. 20, and the bulls are trying to thrust the price above the immediate resistance at $27.12. If they can pull it off, the SOL/USDT pair could rise toward the pattern target of $32.81.
Usually, after breaking out of significant resistance, the price turns down and retests the breakout level. In this case, the price may return to test the neckline. If the price rises from this level, the pair may start a new up-move. A break and close below $23 could shift the advantage back in favour of the Bears.
Cardano (ADA) price analysis
Cardano’s ADA again slipped to solid support at $0.24 on Oct. 19, but the bulls held the level successfully. The positive divergence on the RSI indicates that the bearish momentum is reducing.
ADA/USDT daily chart. Source: TradingView
The price has reached the moving averages, likely to act as a substantial hurdle. If bulls overcome this resistance, the ADA/USDT pair could rise to $0.27 and subsequently to $0.28. The bears are expected to guard this zone fiercely.
If the price turns down from $0.28, it will signal that the pair may form a range for a few days. On the downside, the bears will have to tug the price below $0.24 to indicate the resumption of the downtrend. The following support is at $0.22 and then at $0.20.
Dogecoin (DOGE) price analysis
The long tail on Dogecoin’s candlestick shows that the bulls aggressively buy between $0.055 and $0.06 in the zone.
DOGE/USDT daily chart. Source: TradingView
The bulls must shove the price above the 50-day SMA ($0.06) to indicate a comeback. That could clear the path for a potential rise to the overhead resistance at $0.07. This level may witness a tough battle between the bulls and the bears, but if the buyers prevail, the DOGE/USDT pair could surge to $0.08.
If the price turns down from the moving averages, it will indicate that the bears remain active at higher levels. A tumble below $0.055 will signal the start of the next leg of the downtrend.
Toncoin (TON) price analysis
Toncoin broke below the 61.8% Fibonacci retracement level of $1.98 on Oct. 12, but the bears could not capitalise on this weakness. The bulls purchased the dip and pushed the price back above $1.98 on Oct. 17.
TON/USDT daily chart. Source: TradingView
The bears are trying to halt the recovery at $2.20, but a positive sign is that the bulls have not allowed the price to slip back below the moving averages. This suggests the sentiment has turned positive, and traders are buying the dips.
If buyers kick the price above $2.20, the TON/USDT pair will complete a small inverted H&S pattern. The target objective of this setup is $2.47. This optimistic view will be invalidated if the price drops and slumps below $1.89.
Polkadot (DOT) price analysis
Polkadot’s DOT has been in a strong downtrend. The bears tried to extend the decline on Oct. 19, but the long tail on the candlestick shows solid buying at lower levels.
DOT/USDT daily chart. Source: TradingView
The relief rally will likely reach the breakdown of $3.91, where the bears are expected to mount a strong defence. If the price turns down from this level, it will indicate that the sentiment remains negative and traders are selling on rallies. The bears will again try to pull the price below $3.56 and start the next leg of the downtrend.
On the contrary, if the price breaks above $3.91, it will suggest the start of a more robust recovery. The DOT/USDT pair could then climb to the downtrend line. A break above $4.33 will signal a potential trend change.
Polygon (MATIC) price analysis
Polygon’s MATIC has been trading below the moving averages for the past few days, but the bears have failed to break the support at $0.49. This suggests that selling dries up at lower levels.
MATIC/USDT daily chart. Source: TradingView
The positive divergence on the RSI also shows that the selling pressure could be reduced. If buyers catapult and sustain the price above the moving averages, the MATIC/USDT pair could surge to the overhead resistance at $0.60. This level may again attract selling by the bears. The pair will likely swing between $0.49 and $0.60 for longer.
On the downside, $0.49 remains the fundamental level to watch. If this level gives way, the pair may plummet to $0.45.
