Hopes for approval of a bitcoin (btc) exchange-traded fund by the United States Securities and Exchange Commission boosted the price of bitcoin by 27% in October. This sentiment improved, attracting aggressive buying by cryptocurrency investors.
Bloomberg Senior ETF Analyst Eric Balchunas highlighted in a post on recorded its second-largest trading week in history at $1.7. billion. Similarly, Grayscale bitcoin Trust (GBTC) recorded a volume of $800 million. The sharp increase in volume of existing instruments shows that bitcoin spot ETFs are likely to see huge volumes when they see the light of day.
When the leader begins to perform, he or she generally elevates the entire sector. This is seen in the strong performance of altcoins, which have risen sharply from their multi-year lows.
However, after the initial rally, some altcoins will struggle to maintain their upward movement, while some will lead the markets higher. It is better to stick with the leaders as they are more likely to outperform during the next crypto bull phase.
Let’s look at the charts of the top 5 cryptocurrencies that may extend their rally in the coming days.
bitcoin price analysis
bitcoin retreated from $35,280 on October 24, indicating that higher levels are attracting selling from traders. The bears attempted to initiate a deeper pullback on October 27, but the long tail of the candle shows solid buying at lower levels.
Although rising moving averages indicate an advantage for buyers, overbought levels on the Relative Strength Index (RSI) suggest that the btc/USDT pair may spend more time in consolidation.
The important level to watch on the downside is $32,400 and then $31,000. Sellers will have to drop the price below this zone to take control.
On the contrary, if the price rises from the current level and breaks above $35,280, it will indicate that the bulls have taken control again. Then, the pair may reach the next target at $40,000.
The 20-day EMA is gradually flattening, indicating that the bulls are losing control in the near term. That could keep the pair range-bound between $35,280 and $33,200 for some time. If the bears push the price below $33,200, the pair may fall to $32,400.
On the contrary, if the price rises and rises above $35,280, it will indicate that the current consolidation was a continuation pattern. The pair could then shoot towards $40,000.
Ether Price Analysis
Ether (eth) broke through the $1,746 resistance on October 23 and reached $1,865 on October 26. This level attracted selling by short-term traders, which brought the price back to the breakout level of $1,746.
The bulls successfully defended the retest at $1,746, indicating that the level may act as a new floor. The rising 20-day EMA ($1,693) and the RSI near the overbought zone indicate that the bulls are in control. Buyers will then strive to push the price above $1,865. If they are successful, the eth/USDT pair could skyrocket to $2,000.
If the bears want to avoid the rise, they will have to pull and keep the price below $1,746. That could open the doors to a drop to the 20-day EMA.
The 20-hour EMA on the 4-hour chart is flattening and the RSI is near the midpoint, indicating range-bound action in the near term. The pair may continue to fluctuate between $1,746 and $1,865 for some time.
If the bulls lift the price above $1,812, the probability of a rally to the overhead resistance of $1,865 increases. On the other hand, if the price remains below the 20 EMA, the bears will try to push the pair below $1,746. If that happens, the short-term trend will turn bearish.
Aptos (APT) Price Analysis
Aptos (APT) has rallied sharply in recent days, indicating that the bulls are attempting a comeback.
The APT/USDT pair witnessed profit-taking near $7, but a minor positive is that the bulls did not give up much ground. This shows that every small dip is being bought. The bulls will again try to overcome the $7 hurdle. If they manage to do so, the pair can begin its march towards $8.
Instead, if the price drops below $7, it will suggest that the bears remain active at higher levels. The pair may then spend more time within a tight range between $7 and $6.20. A break below this support could signal the start of a deeper correction.
The pair has found support at the 20 EMA, but the negative divergence on the RSI suggests that the bullish momentum may be slowing. If the price breaks and sustains below the 20-EMA, it will indicate the beginning of a deeper correction towards the 50-SMA.
This remains the key level to watch on the downside because if it breaks, the pair may fall to $5.80. On the upside, the bulls will have to push the price above $7.02 to signal the start of the next leg of the recovery.
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Quantitative price analysis
Quant (QNT) rose above the $95 breakout level on October 23, indicating that markets have rejected lower levels. The buying continued and the bulls pushed the price above the downtrend line on October 25. This indicates a possible change in trend.
Short-term bulls appear to be taking profits after the recent rally. That can cause the price to drop to the downtrend line. This is an important level to pay attention to because a drop below it may suggest that the rise above the downtrend line may have been a bullish trap.
On the contrary, if the price moves away from the downtrend line, it will suggest that the bulls have turned the level into support. If buyers clear the $110 hurdle, it will signal resumption of the rally to $120 and then $128.
The 4-hour chart shows that the QNT/USDT pair is facing selling near $108. The bears pushed the price below the 20 EMA, indicating that short-term traders are taking profits. If the price falls below $103, the pair may fall to $100.
Instead, if the bulls hold the price above the 20 EMA, it will suggest that lower levels continue to attract buyers. The bulls will then make one more attempt to push the price above $110 and begin the next leg of the upward movement.
THORChain Price Analysis
THORChain (RUNE) broke and closed above the $2 overhead resistance on October 23, completing a bullish inverse head and shoulders pattern.
Both moving averages are rising and the RSI is in the overbought zone, indicating that the bulls are still in control. However, in the short term, the RUNE/USDT pair may enter a minor correction or consolidation.
If the pair does not give up much ground from the current level, it will suggest that the bulls are holding on to their positions. That may improve prospects for a rally to $3 and then the pattern target of $3.23. If the bears want to avoid this uptrend, they will have to pull and keep the price below $2.
The pair has been in a strong uptrend and the bulls bought the dips to the 20-EMA. Although the ascending moving averages indicate an advantage for buyers, the negative divergence on the RSI suggests that the bullish momentum may be weakening.
If the price falls below the 20 EMA, it could tempt short-term traders to book profits. That could take the price to the 50-SMA.
On the contrary, if the price bounces strongly off the 20 EMA, it will indicate that sentiment remains positive. The bulls will then try to resume the upward movement with a breakout and close above $2.57.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
