Bitcoin (BTC) has climbed above $30,000, indicating that the market trend is bullish. This rise can be attributed, in part, to Grayscale Investments filing a new application with the United States Securities and Exchange Commission (SEC) for a new spot Bitcoin exchange-traded fund (ETF). Additionally, the SEC seeking to dismiss all claims against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen has raised expectations that the regulator may slow down its attack on cryptocurrency entities.
As market sentiment improves, Bitcoin’s long-term holders have been increasing their stockpiles. According to Glassnode data, 76.2% of the available Bitcoin is locked up in long-term storage. This increased demand and decrease in available supply is likely to cause a supply crunch in the market, which is bullish for Bitcoin’s price.
Now, let’s analyze the charts of the top 10 cryptocurrencies to see if Bitcoin can maintain its momentum and whether altcoins will follow suit.
Bitcoin (BTC) broke and closed above the $28,143 resistance on October 16, with the bulls successfully holding the level during the retest on October 17 and 18. This suggests that buyers have flipped the level into support. The 20-day exponential moving average (EMA) has turned up, and the relative strength index (RSI) is in the overbought zone, indicating that the bulls have the upper hand. The next challenge for Bitcoin is to sustain the price above $30,000 and challenge the strong overhead resistance zone between $31,000 and $31,805.
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Ether (ETH) has once again bounced off the strong support near $1,531, indicating that the bulls are fiercely defending this level. Though the moving averages suggest a bearish advantage, the positive divergence on the RSI suggests a decrease in negative momentum. If Ether can cross the 50-day simple moving average (SMA), it could pick up momentum and attempt a rally to $1,746.
BNB (BNB) is showing a change in sentiment from selling on rallies to buying on dips. The bulls successfully held the price above the 20-day EMA, which may indicate a shift in momentum. If buyers can sustain the price above the downtrend line, BNB could accelerate to $235 and subsequently rally to $250. On the downside, the important support levels to watch are the 20-day EMA and $203.
XRP (XRP) is currently trading between $0.46 and $0.56. The moving averages have flattened out, and the RSI is just above the midpoint. If the price stays above the moving averages, XRP could rally to the overhead resistance at $0.56. On the other hand, if the price falls below the moving averages, it will increase the likelihood of a drop to $0.46. The next trending move for XRP is likely to begin above $0.56 or below $0.41.
Solana’s SOL (SOL) has completed a bullish setup by breaking and closing above the neckline of an inverse head-and-shoulders pattern. The buying pressure has continued, and if SOL can break above the immediate resistance at $27.12, it could rise toward the pattern target of $32.81. The price may retest the neckline before starting a new up-move. On the downside, a break below $23 could shift the advantage back to the bears.
Cardano’s ADA (ADA) has successfully held the strong support at $0.24 and is showing a positive divergence on the RSI. If ADA can overcome the resistance from the moving averages, it could rise to $0.28. However, if the price turns down from $0.28, ADA may remain range-bound for a few days.
Dogecoin’s (DOGE) bulls are aggressively buying in the zone between $0.055 and $0.06. To stage a comeback, the bulls will have to push the price above the 50-day SMA at $0.06. Clearing this level could lead to a potential rise to the overhead resistance at $0.07. However, a fall below $0.055 would indicate the start of the next leg of the downtrend.
Toncoin (TON) has shown strength by recovering above the 61.8% Fibonacci retracement level of $1.98. If buyers can push the price above $2.20, TON may complete an inverted head-and-shoulders pattern with a target objective of $2.47. On the other hand, a break below $1.89 would invalidate this positive view.
Polkadot’s DOT (DOT) has been in a strong downtrend, but the long tail on the candlestick indicates solid buying at lower levels. The relief rally could reach the breakdown level of $3.91, where the bears are expected to mount a strong defense. A turn down from this level would suggest a continued negative sentiment, with the bears aiming to push the price below $3.56 and start the next leg of the downtrend.
Polygon’s MATIC (MATIC) has been trading below the moving averages, but the bulls have defended the support at $0.49. The positive divergence on the RSI suggests a reduction in selling pressure. A sustained move above the moving averages could lead to a surge in price toward the overhead resistance at $0.60.
In summary, Bitcoin’s rise above $30,000, along with positive developments in the SEC’s approach to cryptocurrency entities, indicate a bullish market sentiment. Bitcoin’s long-term holders are increasing their stockpiles, which could lead to a supply crunch and further price increases. To see if Bitcoin can maintain its momentum, and if altcoins will follow suit, it is important to monitor the charts and key support and resistance levels for each cryptocurrency.
