NEWSLETTER
The S&P 500 index pushed rose 0.45% to record its second positive week. While US stock markets moved slowly, gold witnessed a massive rise of over 5% this week. Its 3.11% rally on October 13 was its best one-day performance since December 1 last year. However, bitcoin (btc) bulls were not so lucky as bitcoin is on track to end the week down more than 3%.
bitcoin‘s weakness and regulatory overreach have kept cryptocurrency investors away from altcoins. That has kept bitcoin‘s market dominance hovering around the 50% mark for the past few days.
Market watchers are likely to keep their attention on bitcoin over the next few days. The longer the bulls keep the price above $25,000, the higher the chance that the next move will be bullish. A bullish move in bitcoin is likely to spur buying of select altcoins as cryptocurrency investors will sense a bull market.
Some cryptocurrencies are showing signs of forming a base. If they break higher, a new bullish movement may begin. Let’s study the charts of the top 5 cryptocurrencies that could perform better in the short term.
bitcoin price analysis
bitcoin has been trading between moving averages for the past few days, indicating indecision between bulls and bears over the next directional move.
Typically, a tight consolidation is followed by a range expansion. In this case, if buyers push the price above the 20-day exponential moving average ($27,110), the btc/USDT pair could rise to $28,143. The bears are expected to mount a strong defense at this level.
Alternatively, if the price turns lower and falls below the 50-day simple moving average ($26,671), it will indicate that the bears have asserted their supremacy. The pair may fall first to $25,990 and then to the fundamental support at $24,800. This level is likely to attract aggressive buying by the bulls.
The pair’s recovery faces selling at the 20 EMA on the 4-hour chart, but a positive sign is that the bulls have not given up much ground. This suggests that buyers are not rushing out and are keeping up the pressure.
If the 20 EMA is cleared, the pair could first rise to the 50 SMA. This level can act as a minor barrier, but if broken, the pair could rise to $27,750 and then $28,143.
On the contrary, if the bulls fail to break the 20 EMA, sellers will sense an opportunity to lower the price. A drop below $26,500 could sink the pair to $26,000 and then $24,800.
Solana Price Analysis
Solana (SOL) has witnessed a tough battle between bulls and bears near the 20-day EMA ($21.77). This suggests that the bulls are attempting to convert this level into support.
There is minor resistance at $22.50, but if this level is crossed, the SOL/USDT pair could rise to the neckline of the inverse head and shoulders pattern. A break and close above this resistance will complete the bullish setup. Buyers may face strong resistance at $27.12, but if this hurdle is cleared, the pair could reach the target of $32.81.
This positive view will be negated in the short term if the price declines and falls below the 50-day SMA ($20.50). That could start a decline towards $18.58 and then $15.33.
After trading between the moving averages for some time, the price resolved lower with a break below the 20-EMA. This indicates that the bears may remain in control. The pair could first fall to $20.93 and if this level is also broken, the pair could collapse to $20.
On the contrary, if the price fails to sustain below the 20 EMA, it will suggest solid buying at lower levels. The first sign of strength will be a break and close above the 50-SMA. That could open the doors to a rally to $23.50 and then the neckline of the inverse H&S chart pattern.
Lido DAO Price Analysis
Lido DAO (LDO) has been trading near moving averages for the past few days, indicating that the bears may be losing control.
The moving averages have stabilized and the RSI has jumped into positive territory, indicating that the bulls are attempting a comeback. The immediate resistance on the upside is $1.73. If this level is scaled, the LDO/USDT pair could rise to the downtrend line. This level is likely to witness a tough battle between bulls and bears again.
On the contrary, if the price turns down and slides below the moving averages, it will suggest that the bears are in control and are selling on every minor rally. The pair could then retest the vital support at $1.38.
The 20-day EMA has started to appear on the 4-hour chart and the RSI is in the positive zone, indicating that the bulls have the upper hand. There is minor resistance at $1.63 but it is likely to be broken. The pair could then rise to $1.73.
If the bears want to weaken the bullish momentum, they will have to quickly drag the price below the moving averages. Then, the pair could fall to the $1.45 to $1.50 support zone.
Related: bitcoin Traders Eye Weekly Close Volatility With $27,000 btc Price on Radar
Internet computer price analysis.
Internet Computer (ICP) has been consolidating in a tight range between $2.86 and $3.35 over the past few days.
The RSI has formed a positive divergence, indicating that the selling pressure is reducing. The ICP/USDT pair could next reach the overhead resistance of $3.35. A breakout and close above this level will indicate a possible trend reversal. The first upside target is $4 and then $4.50.
Contrary to this assumption, if the price turns down from $3.35, it will suggest that the pair may extend its stay within the range for some time longer. A fall below $2.86 will signal the resumption of the downtrend.
The moving averages have completed a bullish crossover and the RSI is in the overbought zone on the 4-hour chart. This indicates that buyers have the upper hand. The pair is likely to reach the overhead resistance of $3.35, where the bears may pose a strong challenge.
If the price drops below $3.35, the consolidation may continue for a while longer. On the other hand, if buyers push the price above $3.35, it will indicate that the bulls are in charge. The pair may then shoot up to $3.74 and later to the pattern target of $3.84.
VeChain Price Analysis
VeChain (VET) has been trading within a descending triangle for the past few days. Although this is a negative pattern, the price has been holding on to the downtrend line for the past few days, which is a positive sign.
The moving averages have stabilized and the RSI is near the midpoint, indicating that bearish pressure may be reducing. Buyers will try to push the price above the downtrend line. If they succeed, it will override the negative configuration. That could start a new bullish move towards $0.021.
Instead, if the price turns down from the current level, it will suggest that the bears continue to defend the downtrend line vigorously. Then, the bears will again try to push the price to the critical support of $0.014.
The 4-hour chart shows that the price has been trading within the falling wedge pattern. Buyers are trying to push and maintain the price above the 50-SMA. If they do, the VET/USDT pair could reach the downtrend line of the wedge. A breakout and close above the wedge could start a new bullish move.
The bears are unlikely to give up easily. They will aggressively defend the zone between the 50-SMA and the downtrend line. If the price declines sharply and slides below the 20 EMA, it will indicate that the pair may remain inside the wedge for longer.
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.
