Bitcoin (BTC) continues to face strong selling as gains seek to lower the psychological level to the $60,000 support.
Bitcoin (BTC) continues to face strong selling as gains seek to lower the psychological level to the $60,000 support. Some analysts believe Bitcoin could be adjusted as traders reported gains following the successful launch of a Bitcoin exchange-traded fund last week. In the past, the product release for Bitcoin futures on the Chicago Mercantile Exchange on December 18, 2017 ended a strong specter and marked the beginning of a multi-year bear market. A similar fall occurred on a smaller scale which was observed following the Coinbase (COIN) IPO on April 4, 2021. This suggests that the old saying “buy rumours, sell news” may resurface.
However, some analysts are not worried about the drawdown. Cryptocurrency market intelligence firm Decentrader said that "there is no case of Bitcoin breaking through and stopping to break past significant all-time highs." They expect the Bitcoin battle to continue with a possible target of $72,000 and then $88,000. Not every indicator is lighting up at this time. Bybt data shows that Bitcoin reserves have increased to 400,000 Binance bitcoins, suggesting that traders may be trying to close their positions. Can Bitcoin Be a Strong Return to Boost Sentiment in the Crypto Sector? Let's analyze a chart of the top 5 cryptocurrencies that could remain in focus over the next few days.
BTC / USDT
Bitcoin faces strong resistance in the $64,854 to $67,000 range. The price could fall to the 20-day exponential moving average ($58,315) which is an important level to watch out for. If the price bounces strongly from this level, this indicates that sentiment remains positive and traders are buying. The bulls will then make another attempt to push the price above the upper zone. If successful, the BTC/USDT pair may resume its uptrend. The pair could then unite on their goal of $84,533.12. The falling moving average and the Relative Strength Index (RSI) in positive territory suggest that buyers are benefiting.
Contrary to this assumption, if the price falls and falls below the 20-day EMA, it would mean that a break above $64,854 could become a bull trap. The pair was then able to extend its decline to the 50-day simple moving average ($50,927). The pair is correcting in the downward channel. Immediate support is at $58,739.17 and if the level breaks, the pair may fall to the channel's support line. This is an important level of bull protection as a break below it can increase sales. The 20-EMA seperated and the RSI fell into negative territory, indicating that the bears have the upper hand. This negative view will be cancelled if the price breaks above the channel and the moving averages. Such a move would increase the chances of a retest of the upper zone.
SOL / USDT
The long wick of the Solana candlestick (SOL) on October 22 shows that bears are aggressively maintaining resistance at $216. On October 23, the altcoin formed an internal candlestick pattern indicating uncertainty between ups and downs. The uncertainty is gone today and the price could fall to the breakout level of $177.79. If the price bounces off this level, it indicates that the sentiment remains bullish and traders are buying downwards. Then the bulls will try again to push the price above $216. If successful, the pair SOL/USDT could rise to $239.83. A weak 20-day EMA ($168) and RSI in positive territory suggest buyers' gains.
This positive view will be rejected if the price continues to fall and falls below the 20-day EMA. This can pull the price to the triangular trend line. Bears are dragging the price below the 20 EMA on the 4-hour chart. If the sellers hold the price below the 20-EMA, this indicates that the bullish momentum has weakened. The pair may then slide to $177.79 where a buy can be made. The first sign of strength is a break and close above the downline. Such a move would indicate that the trader is buying in a downtrend. This could push the price to $205.78 and if this resistance is controlled, the pair could rise to the highest level ever.
AVAX / USDT
The avalanche (AVAX) exploded above the descending channel on October 21 and closed, indicating the correction may be complete. Now the bulls will try to continue the uptrend. The long wicks of the candles on October 22 and 23 indicate that demand is drying up at higher levels. The AVAX/USDT pair could drop to the moving averages. A strong rebound from this support would suggest retailers continue to decline. The bulls will then make another attempt to continue the upward movement by pushing the price above $69.18. If successful, the pair could unite at $73.41 and then test the all-time high of $79.80.
Contrary to this assumption, if the price breaks below its moving averages, the pair could fall to the strong support at $51.04. If this level also decreases, the next stop can be the channel reference line. The bulls pushed the price above the descending line of the descending triangle, cancelling the bearish stance. However, the recovery was short-lived as the bears pushed the price back below the 20-EMA. This means selling at a higher rate. The pair may now drop to the 50 SMA. If this support is broken, the bears will try to pull the price back into the triangle. When this happens, it indicates that the break above the triangle is a bull trap.
Conversely, if the price rises from the current level or the line jumps down, it will indicate that the gains are accumulating in the decline. Buyers will then try to push the price above $69.18. Breaking out and closing above this resistance signals that the bulls have the advantage. The pair can then begin their journey to the all-time peak.
ALGO / USDT
Algorand (ALGO) has been trading in a symmetrical triangle for several days. The price dropped from the triangular resistance line today, indicating bears are reluctant to let the bulls go their way. If the price drops below the moving averages, the ALGO/USDT pair may fall to the triangle's support line. This is an important bull protection level because when it cracks, the bears will try to push the price up to $1.51 and then to $1.20.
Alternatively, if the price rises from the current level or support line and breaks above the triangle, this indicates that the bulls are in control. The pair could then merge to $2.22 and then test a record high of $2.55. The price is pushed into the triangle, indicating that the pair may be gearing up for a strong directional move. The moving average cross and the RSI near the midsection are not providing clear or bearish gains.
A break above the triangle indicates that the bulls have taken over the bears' sell-off and this could prompt the pair to resume the upward movement. Conversely, a break below the triangle indicates that supply exceeds demand, and this could lead to a deeper adjustment.
AXS / USDT
Axie Infinity (AXS) has formed a symmetrical triangle pattern which indicates hesitancy between bulls and bears. It is difficult to predict the direction of the breakthrough, but usually the triangle acts as a continuous pattern. If the price bounces off the support line, the bulls will make another attempt to push the AXS/USDT pair up the triangle. If they succeed, this is a signal for the continuation of the uptrend. The pair may then test its all-time high at $155.27. The bullish momentum could increase if the buyers overcome this obstacle. The pair could then join the model's target of $186.05.
On the contrary, breaking and closing below the triangle is the first sign of a deeper correction. The pair could drop to $103.22 first and then to the $94.67 breakout level. The moving average is in line with the 4-hour chart and the RSI is between 40 and 62. This indicates an equilibrium state where traders are buying at the $115 drop and selling near $140.
A break and close below $115 could signal that the uncertainty is over. This could pull the price towards the target of the $90 model, otherwise, a break above $140 signals that the bulls are back in the game. The pair could rise to $155.27 and then move up to the $165 model target.