Buyers are facing difficulties in maintaining Bitcoin’s price above $27,000, with selling pressure increasing after the September producer price index rose higher than expected. This indicates that inflation pressures are unlikely to ease quickly for the US economy. The uncertain near-term environment has shifted analysts’ focus to November and the upcoming halving event expected in April 2024. Analysts believe that if history repeats itself, Bitcoin may turn up by November 21 and start its journey higher to the next halving. Some analysts, like BitMEX founder Arthur Hayes, are even more bullish, predicting that Bitcoin’s price could reach $750,000 to $1 million by 2026 due to incessant money printing by the US government to avoid a financial crisis.
While there is bullish sentiment about the long-term prospects of Bitcoin and other cryptocurrencies, the near-term remains uncertain due to various headwinds. To analyze the short-term outlook, let’s take a look at the charts of the top 10 cryptocurrencies:
Bitcoin: After finding support at the 20-day exponential moving average ($27,227), Bitcoin broke below the level on October 11, indicating that bears are trying to seize control. The next support to watch on the downside is the 50-day simple moving average ($26,615), and if this level cracks, it could signal further downside towards $26,000 and eventually retesting the support at $24,800. A rebound off the 50-day SMA could open the doors for a potential rally to $28,143.
Ether: Ether has been finding buyers near the $1,531 support, which is a positive sign. This suggests that the price will continue to swing between $1,531 and $1,746 for some more time. A positive divergence on the ETH/USDT pair suggests that selling pressure may be reducing near $1,531, potentially starting a relief rally towards the 20-day EMA ($1,619). If the price turns down from this level, the bears will make another attempt to push the pair below $1,531 and start a downward move to $1,368. On the upside, a rise above the moving averages will suggest strong accumulation at lower levels, potentially leading to a rally to $1,746 and $1,961.
Related Post
BNB: BNB fell below the uptrend line but bounced off the strong support at $203, indicating a range-bound movement between $203 and $220. The long wick on the October 10 candlestick suggests that bears are selling rallies to the moving averages. A break below $203 could lead to a drop to $183, while a rise above $220 could open the doors for a potential rally to $235 and $250.
XRP: XRP’s demand dried up at higher levels, and the price broke below the moving averages on October 9. This suggests that the pair may extend its stay between $0.41 and $0.56 for some more time. On the downside, the first support is at $0.46, followed by $0.41, while attempts to start a recovery are likely to face resistance at the moving averages and $0.56.
Solana: Solana is trading above the immediate support at the 20-day EMA ($21.79). If the price turns up from the current level, the pair may attempt to form a bullish inverted head and shoulders pattern, with a possible target objective of $32.81. However, if the bears gain strength, they may try to push the price to the 50-day SMA ($20.44) and further downwards to $18.50 and $17.33.
Cardano: Cardano was dragged back below the moving averages on October 9, indicating a lack of demand at higher levels. The pair could retest $0.24, an important support level. A break and close below $0.24 would indicate the start of the next leg of the downtrend, with potential drops to $0.22 and $0.20. On the upside, the bulls need to drive the price above the moving averages to signal further strength.
Dogecoin: Dogecoin closed below the $0.06 support on October 9, indicating that bears are in charge. The bulls need to quickly push the price back above the breakdown level of $0.06 to make a comeback. If they fail to do so, the bears will continue to put pressure on the $0.055 support. A break below this level could lead to a retest of the pivotal support near $0.05.
Toncoin: Toncoin failed to sustain above the 20-day EMA ($2.06), indicating that bears are selling on relief rallies. The buyers will next try to clear the overhead hurdle at the 20-day EMA, and if successful, the pair may rise to $2.18 and $2.32. On the other hand, if the bears sink and sustain the price below the 50-day SMA ($1.96), the pair may start a downward move towards $1.60.
Polkadot: Polkadot was yanked below the vital support at $3.91. The first sign of strength will be a break and close above $3.91, which may trap aggressive bears and result in a short squeeze. A break below $3.50, on the other hand, may lead to further downward movements.
Polygon: Polygon broke below the 20-day EMA ($0.53), putting the onus on the bulls to defend the crucial support at $0.49. A rebound off this level would indicate that the bulls remain in control, while a break below $0.49 would keep the range between $0.49 and $0.60 intact.
In conclusion, despite long-term bullish sentiment, the near-term outlook of cryptocurrencies remains uncertain. Bitcoin and altcoins are facing various headwinds, and their short-term movements will largely depend on the broader market conditions and macroeconomic factors. Traders and investors should carefully watch the key support and resistance levels on the charts to gauge the potential direction of each cryptocurrency.
