Bitcoin’s recent market correction triggered a sell-off in altcoins, causing them to fall below key support levels.
On 22nd October, Bitcoin’s (BTC) recovery attempt faced strong selling pressure from bears, driving the price close to $66,000 by 23rd October. This decline contributed to net outflows of $79.1 million from US-based Bitcoin exchange-traded funds (ETFs) on 22nd October, marking the first net negative inflow since 10th October, according to Farside Investors.
Despite this short-term pullback, analysts remain optimistic about a potential Bitcoin rally following the US Presidential election. David Lawant, head of research at FalconX, told Bloomberg that Bitcoin is “likely to perform well” regardless of the election’s outcome.
Veteran investor Paul Tudor Jones told CNBC that he had “some basket of gold, Bitcoin, commodities and Nasdaq [technology stocks]” as after the US elections “all roads lead to inflation.”
Will Bitcoin’s near-term support hold? Could altcoins start a recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
The Bitcoin market has returned to the 20-day exponential moving average ($65,526), an essential near-term support to watch out for.
BTC/USDT daily chart. Source: TradingView
A strong rebound off the 20-day EMA will indicate aggressive buying on dips, signaling a bullish sentiment. Buyers will then make one more attempt to drive the BTC/USDT pair above $70,000. If they can pull it off, the rally could stretch to $72,000. Sellers are expected to pose a strong challenge in the $72,000 to $73,777 zone.
On the downside, a break and close below the 20-day EMA will weaken the positive momentum. The pair may then slump to the 50-day simple moving average ($62,295). That will indicate continued range-bound action for a few more days.
Ether (ETH) Market Analysis
The Ether market re-entered the symmetrical triangle on Oct. 22, indicating that the markets had rejected the breakout.
ETH/USDT daily chart. Source: TradingView
Selling accelerated on Oct. 23, and the price broke below the 20-day EMA ($2,568). There is minor support at the 50-day SMA ($2,487), but if the level fails to hold, the ETH/USDT pair could drop to $2,400 and then $2,330.
Contrary to this assumption, if the price rebounds off the 50-day SMA, it will suggest demand at lower levels. The bulls will again try to drive the price to $2,850, which is likely to behave as a strong barrier.
BNB Market Analysis
BNB dipped below the 20-day EMA ($585), which is an important support to watch out for in the near term.
BNB/USDT daily chart. Source: TradingView
If the price stays above the 20-day EMA on a closing basis, it will indicate that the bulls are defending the level. That will increase the likelihood of a rally to the overhead resistance of $635, which is likely to act as a formidable barrier.
Instead, if the price closes below the 20-day EMA, it will suggest that the bulls are booking profits. The BNB/USDT pair may then slide to the 50-day SMA ($565) and later to the solid support at $527. Such a move will suggest that the pair extends its stay inside the $460 to $635 range.
Solana (SOL) Price Analysis
Solana has been sustaining above the breakout level of $164, but the bulls are struggling to start a rally. The failure to push the price above $172 may strengthen the bears.
SOL/USDT daily chart. Source: TradingView
Sellers will then try to pull the price back into the triangle and trap the aggressive bulls. If that happens, the SOL/USDT pair could slide to the 20-day EMA ($155). If the price rebounds off the 20-day EMA, the bulls will again try to start the up move by pushing the pair above $172. If they succeed, the pair may rally to $189.
Conversely, if the price breaks below the 20-day EMA, the bears will try to drag the pair to the uptrend line.
XRP Price Analysis
XRP broke below the uptrend line on Oct. 22, indicating that the bears are trying to seize control.
XRP/USDT daily chart. Source: TradingView
The XRP/USDT pair could decline to the strong support at $0.50. This is an important level for the bulls to defend because a break and close below it will open the doors for a further slide to $0.46.
On the upside, the bulls will have to push and maintain the price above the 50-day SMA ($0.55) to signal strength. The pair could then attempt a rally to the overhead resistance of $0.64.
Dogecoin (DOGE) Price Analysis
The bears are trying to pull Dogecoin toward the breakout level from the symmetrical triangle pattern.
DOGE/USDT daily chart. Source: TradingView
The upsloping 20-day EMA ($0.12) and the RSI in the overbought territory indicate an advantage to buyers. If the price turns up from the current level or rebounds off the resistance line with strength, it will signal to buy on dips. That will improve the prospects of a rally above $0.15. The DOGE/USDT pair may climb to $0.17 and later to $0.19.
This optimistic view will be negated in the near term if the price turns down and re-enters the triangle. The pair may then slump to the 50-day SMA ($0.11).
Toncoin (TON) Price Analysis
Toncoin continues to trade below the moving averages, indicating a lack of demand at higher levels.
TON/USDT daily chart. Source: TradingView
The $5 level is the immediate support to watch out for. If this level cracks, the TON/USDT pair could test the $4.72 to $4.44 support zone. Buyers are expected to vigorously defend the support zone because a break below it will complete a bearish head-and-shoulders pattern.
If the bulls want to make a comeback, they will have to propel the price above the moving averages. The pair will then attempt a rally to $7. Sellers will try to halt the recovery at $6, but the level is likely to be crossed.
Cardano (ADA) Price Analysis
Cardano continues to trade inside the tight range between $0.33 and $0.37, signalling a tough battle between the bulls and the bears.
ADA/USDT daily chart. Source: TradingView
The flattish moving averages and the RSI near 50 suggest that the ADA/USDT pair may spend some more time inside the range. If the price breaks below the moving averages, the bears will try to build upon their advantage by sinking the pair below $0.33. If they manage to do that, the pair could descend to the vital support at $0.31.
On the contrary, if the rises from the moving averages, the bulls will try to overcome the barrier at $0.37. If they succeed, the pair could reach $0.40, where the sellers are likely to mount a solid defense.
Avalanche (AVAX) Price Analysis
Avalanche continues to trade inside the symmetrical triangle pattern, indicating indecision between the bulls and the bears.
AVAX/USDT daily chart. Source: TradingView
The flattish 20-day EMA ($27.52) and the RSI just below the midpoint do not signal a clear advantage either to the bulls or the bears. If the price skids below the 50-day SMA ($26.27), the AVAX/USDT pair could test the support line.
The bulls are expected to buy the dip to the support line. If the price turns up sharply from the support line, it will indicate that the pair may remain inside the triangle. Contrarily, a break below the support line will clear the path for a fall to $20 and later to $17.
Shiba Inu (SHIB) Price Analysis
The failure of the bulls to start a rebound off the 20-day EMA ($0.000018) in Shiba Inu increases the risk of a breakdown.
SHIB/USDT daily chart. Source: TradingView
If the price closes below the 20-day EMA, the SHIB/USDT pair could plunge to the 50-day SMA ($0.000016). That suggests the pair may remain inside the $0.000012 to $0.000020 range for a while longer.
If buyers want to maintain their advantage, they must swiftly start bouncing off the 20-day EMA. The pair could then rise to $0.000020, where the bears are expected to sell aggressively.
