The stagnant price action of Bitcoin has resulted in decreased trading volume on Coinbase, with spot trading volume dropping 52% in Q3 2023 compared to the same period in 2022, according to a report by Bloomberg. However, this lack of movement may be an indication of an upcoming explosive price action. While it is difficult to predict the direction of the breakout, the fact that Bitcoin has consistently stayed above $25,000 in recent months increases the likelihood of an upside breakout.
Renowned investor Paul Tudor Jones expressed his bearish sentiment towards the equities markets due to the Israel-Hamas conflict, stating that it may lead to a risk-off sentiment. Jones believes that in such a scenario, both gold and Bitcoin will benefit.
Analyzing the charts of the top 10 cryptocurrencies, it’s clear that Bitcoin’s price is currently hovering around its 50-day simple moving average ($26,634), with the bulls successfully defending this level against the bears. However, the lack of demand at higher levels indicates that the bears may try to push the price below the 50-day SMA in order to gain an advantage. If successful, Bitcoin could retest the strong support level at $26,000 before potentially experiencing aggressive buying from the bulls.
Ether, the second-largest cryptocurrency, also experienced a dip in price but managed to hold the critical support level at $1,531. Despite this minor positive, bears still maintain control and could push the price below $1,531, causing a further descent to $1,368. Bulls, on the other hand, will need to push the price above the moving averages to prevent a fall and potentially drive the price to $1,746.
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Binance Coin (BNB) saw a fall to a strong support level at $203, but the long tail on the candlestick suggests that bulls are actively defending this level. To indicate a weakening bearish grip, bulls will need to quickly push the price above the moving averages and the downtrend line. If successful, BNB could start an up-move towards $235 and $250. Conversely, a break below $203 could lead to a descending triangle pattern, resulting in a downward move to $183.
XRP ventured below the uptrend line on Oct. 11, indicating a reduction in bullish pressure. This suggests that the price of XRP will continue to oscillate between $0.41 and $0.56 for some time. If the $0.46 support level cracks, XRP could potentially tumble to the important level of $0.41. However, the expected aggressive buying from bulls should keep the range-bound action intact.
Solana slipped below the 20-day EMA ($21.72) on Oct. 12, signaling that bears are maintaining their pressure. Currently, there is a balance between supply and demand, with both moving averages flattening out and the RSI near the midpoint. Bears may strengthen their position by dragging the price below the 50-day SMA ($20.44), potentially causing a slump to $17.33. Conversely, if the price rises above $22.50, it will favor buyers and open the possibility of an increase to the neckline of the inverse head and shoulders pattern.
Cardano has been forming long tails on successive candlesticks since Oct. 9, but failed to start a recovery, indicating a lack of demand at higher levels. Currently, the ADA/USDT pair is near the support level of $0.24, with the RSI showing signs of positive divergence. This suggests a reduction in selling pressure and the possibility of a relief rally. If successful, the pair could reach the moving averages, followed by potential increases to $0.27 and $0.28. However, a fall below $0.24 would indicate continued bearish control, potentially leading to a decline to $0.22 and $0.20.
Dogecoin has been trading below the $0.06 support level since Oct. 9, indicating acceptance of lower levels by the markets. Bears will likely try to sink the price to the vital support at $0.055, which could then lead to a consolidation phase between $0.055 and $0.06. The presence of downsloping moving averages and an RSI near the oversold zone indicate bearish dominance. To make a comeback, bulls will need to push the price above the moving averages, potentially triggering a recovery to $0.07.
Toncoin has been in a corrective phase for the past few days, with profit booking causing the price to dip below the 50-day SMA ($1.98) on Oct. 12. Bulls will need to reclaim this level and push the price back above the moving averages to indicate that the break below the 50-day SMA was a bear trap. This could open the doors for a possible rise to $2.31. However, a downturn from the moving averages would suggest negative sentiment and increase the risk of a fall to $1.60.
Polkadot continued its decline and reached the target objective at $3.50 on Oct. 12, where it is expected to act as a solid support level. Reclaiming the 20-day EMA is crucial, as a turn down from this level would indicate selling on relief rallies and potentially lead to a drop below $3.50. Conversely, if bulls sustain the price above the 20-day EMA, it would suggest rejection of lower levels and trap aggressive bears, resulting in a short squeeze towards the downtrend line.
Polygon is weakening towards the critical support level at $0.49, indicating a reluctance among bulls to buy at higher levels. It is expected that bulls will buy any dips to $0.49, potentially keeping the range-bound action intact. Traders generally buy near support levels and sell near resistance levels. In this case, bulls are likely to buy the dip with vigor. If the price turns up from this level, it could pave the way for a potential uptrend.
In conclusion, while Bitcoin’s stagnant price action may have resulted in decreased trading volume, a breakout with explosive price action could be on the horizon. The direction of the breakout remains uncertain, but the resilience of Bitcoin above $25,000 increases the likelihood of an upside breakout. Traders should remain watchful for any indications of a breakout and take note of the various support and resistance levels for each cryptocurrency mentioned.
