Bitcoin’s (BTC) recent market resilience, refusing to cede its market position, has triggered significant interest in specific alternative cryptocurrencies.
Over the past week, Bitcoin has surged by an impressive 15%, following a 10.45% increase in the preceding week. In stark contrast, the S&P 500 Index witnessed a 2.53% decline last week, coupled with a 2.39% drop the week before. These contrasting trends highlight Bitcoin’s short-term decoupling from the S&P 500 Index, suggesting the possibility of its independent trajectory.
Nevertheless, the road ahead for Bitcoin may not be without challenges. The impending Federal Open Market Committee (FOMC) meeting scheduled for Nov. 1 could introduce some volatility into the market. However, market analysts anticipate that any such disruptions will likely be brief, as there are no unexpected developments expected. According to CME’s FedWatch Tool, there is a substantial 98% likelihood that interest rates will remain unchanged during this meeting.
Much of the gains in Bitcoin have been fuelled by expectations that the United States Securities and Exchange Commission will approve a spot Bitcoin exchange-traded fund soon. Any adverse news may be a significant setback for the bulls. When traders start chasing prices higher, it increases the risk of a short-term pullback.
What are the critical support levels on Bitcoin and altcoins need to hold for the sentiment to remain bullish? Let’s analyze the charts to find out.
S&P 500 Index (SPX) Market Analysis
The S&P 500 Index remains in a strong downtrend. The price is close to the strong support zone, between 4,050 and 4,100.
SPX daily chart. Source: TradingView
The sharp fall of the past few days pushed the relative strength index (RSI) into the oversold territory, suggesting that a pullback may be possible. On the upside, the bears are expected to sell near the 20-day exponential moving average (4,255).
If the price turns down sharply from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will again try to sink the price below the support zone. If they succeed, the index could plummet toward 3,800. This negative view will be invalidated soon if the price rises and sustains above the 20-day EMA.
U.S. dollar index (DXY) Market Analysis
The U.S. dollar index rebounded off the 50-day simple moving average (105) on Oct. 24, indicating lower levels attract buyers.
DXY daily chart. Source: TradingView
The rising moving averages indicate an advantage to buyers, but the negative divergence on the RSI suggests that the bullish momentum may weaken. That could keep the index range-bound between 105.36 and 107.35 for some time.
If buyers maintain the price above the 20-day EMA (106.23), the bulls will attempt to drive the index above 107.35. If they succeed, the index may surge toward 111. If bears want to prevent the upside, they will have to drag and sustain the price back below 105.36. The index may then fall to 104.50.
Bitcoin (BTC) Market Analysis
After the sharp rally, Bitcoin has entered a consolidation phase between $33,390 and $35,380. This is a positive sign as it suggests that the bulls do not need to book profits aggressively.
BTC/USDT daily chart. Source: TradingView
Although the overbought levels on the RSI warrant caution, the rising moving averages suggest that bulls remain in charge. If buyers drive the price above $35,280, the BTC/USDT pair could surge toward $40,000. This level is likely to act as a formidable resistance.
On the way down, if bears sink the price below $33,390, the pair risks a drop to $32,400 and then to $31,000. This zone will likely witness solid bull buying because if it cracks, the selling could intensify, and the pair may plummet to $28,143.
Ether (ETH) price analysis
Ether has maintained above the breakout level of $1,746, but the bulls have failed to extend the recovery. This suggests that demand dries up at higher levels.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair may stay range-bound between $1,746 and $1,865 for a few days. The rising moving averages and the RSI in the overbought territory indicate that the bulls have the upper hand.
If buyers kick the price above $1,865, the pair could rally to $2,000. The bears are likely to guard this level with vigour.
The critical support on the downside is $1,746, and then the 20-day EMA ($1,705). Sellers will return to the driver’s seat if they sink and sustain the price below the 20-day EMA.
BNB price analysis
BNB has been stuck inside an extensive range between $235 and $203 for several days. The rising 20-day EMA ($219) and the RSI in the positive territory indicate that bulls have a slight edge.
BNB/USDT daily chart. Source: TradingView
If the price sustains the rebound off $223, the bulls will again try to shove the price above the overhead resistance at $235. If they can pull it off, it will indicate the start of a sustained recovery to $250 and eventually to $265.
Meanwhile, the bears are likely to have other plans. They will try to yank the price back below the 20-day EMA. Such a move will suggest that the BNB/USDT pair may extend its stay inside the range for a while longer.
XRP price analysis
After staying in a tight range between $0.56 and the 20-day EMA ($0.53) for the past few days, XRP cleared the hurdle on Oct. 30.
XRP/USDT daily chart. Source: TradingView
The upsloping 20-day EMA and the RSI in the overbought zone indicate that the bulls are at an advantage. There is a minor resistance at $0.59. If bulls overcome this barrier, the XRP/USDT pair will likely climb to $0.66.
However, the bears are unlikely to give up easily. They will try to pull the price back below the 20-day EMA. If they manage to do that, it may trap several aggressive bulls. The pair may remain stuck between $0.46 and $0.56 for a few more days.
Solana (SOL) price analysis
In an uptrend, the corrections are shallow and short-lived. That is what happened in Solana. After a minor pullback, the bulls have asserted their supremacy.
SOL/USDT daily chart. Source: TradingView
The SOL/USDT pair resumed its uptrend on Oct. 30 with a break above $33.90. The bulls will next try to push the price to $38.79. This level is expected to be a significant resistance, but if buyers bulldoze their way through, the pair may reach $48.
The critical support to watch on the downside is $31. If the pair slips below this level, it will suggest that the bulls may be dumping their positions in a hurry. That could pull the price down to the 20-day EMA ($28,73).
Cardano (ADA) price analysis
Cardano has been sustaining above the breakout level of $0.28 for the past few days, but the bulls are finding it difficult to clear the overhead hurdle at $0.30.
ADA/USDT daily chart. Source: TradingView
Still, a positive sign is that the bulls have not given up much ground from the overhead resistance. This suggests that the buyers have kept up the pressure. If they overcome the roadblock at $0.30, the ADA/USDT pair could rally to $0.32 and, after that, to $0.34.
Alternatively, if the price turns down from $0.30, it will suggest that the bears are aggressively defending the level. The pair may swing between $0.28 and $0.30 for some time. A break and close below the 20-day EMA ($0.27) will tilt the advantage back in favour of the Bears.
Dogecoin (DOGE) price analysis
Dogecoin has been witnessing a tough battle between the bulls and the bears near the $0.07 mark.
DOGE/USDT daily chart. Source: TradingView
A minor positive is that the bulls buy the dips below $0.07. This suggests that the sentiment has changed from selling on rallies to buying on dips. The bulls will then again try to overcome the obstacle at $0.07. If they can pull it off, the DOGE/USDT pair could start its northward march to $0.08.
The critical support to watch on the downside is the 20-day EMA ($0.06). If this support cracks, the pair could dive to the solid support at $0.06.
Toncoin (TON) price analysis
Toncoin broke below the moving averages on Oct. 27, but the bears could not build upon the advantage. This suggests that selling dries up at lower levels.
TON/USDT daily chart. Source: TradingView
The 20-day EMA ($2.07) has flattened out, and the RSI is near the midpoint, indicating a balance between buyers and sellers. If the price rises above the moving averages, the bulls will try to kick the TON/USDT pair above $2.31. If they do that, the pair may start its journey to $2.59.
Conversely, if the price turns down from the moving averages, it will suggest that bears are trying to gain the upper hand. A break below $2 could clear the path for a decline to $1.89.
