Bitcoin and select altcoins have broken out of their bullish setups,
hinting that further upside could occur through the weekend.
Payments giant, Square, has become the second listed company after MicroStrategy to buy Bitcoin (BTC).
Although Square’s purchase of 4,709 Bitcoin is much smaller than
MicroStrategy’s haul of 38,250 Bitcoin, many investors feel that this is
a welcome step in the right direction.
The acquisition
of cryptocurrency by large listed companies such as Square could
possibly inspire other companies to join the crypto bandwagon and it
also suggests that Bitcoin’s image as an investment vehicle and store of
value have improved.
The growing interest in
cryptocurrency is not going unnoticed as several central banks are
attempting to make themselves relevant in this digital age with the
launch of central bank digital currencies.
Daily cryptocurrency market performance. Source: Coin360
China
has been at the forefront in the development of a CBDC. Local news
outlets in China also report that the city of Shenzhen is planning to do
a public giveaway of 10 million digital yuan to about 50,000 people who will be chosen through a lottery.
China’s progress on the digital yuan has prodded other Asian nations to hasten the development
of their own CBDCs. As proof of this, a recent report by the Bank of
Japan outlined that the country plans to begin testing its own CBDC sometime in 2021.
The crypto market has reacted positively to all the newsflow, but is this recovery sustainable?
Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USD
Bitcoin (BTC)
broke and closed above the symmetrical triangle and the 50-day simple
moving average ($10,855) on Oct. 8. This shows that the uncertainty
between the bulls and the bears has resolved to the upside.
BTC/USD daily chart. Source: TradingView
If
buyers can sustain the price above the triangle for one more day, the
breakout will be considered as valid and the BTC/USD pair could start
its journey towards the pattern target of $12,434.
The bears are unlikely to give up easily and most traders expect stiff resistance at $11,178 and $12,000.
However,
the 20-day exponential moving average ($10,744) has started to turn up
and the relative strength index has also risen into the positive
territory. This suggests that the advantage is currently with the bulls.
This
bullish view will be invalidated if the bears pull the price back below
the 20-day EMA. Such a move will suggest that the current breakout was a
bull trap.
ETH/USD
Ether (ETH)
bounced off $333.039 on Oct. 7 and the bulls are currently attempting
to sustain the price above the downtrend line. If they succeed, a move
to the 50-day SMA ($371) and then to $395 is possible.
ETH/USD daily chart. Source: TradingView
The
bears may mount a stiff resistance at $395. If the price turns down
from this level, the ETH/USD pair could drop to the 20-day EMA. The
20-day EMA ($354) is flat and the RSI is just above 50, which suggests
range-bound action for a few days.
However, if the bulls
push the price above $395, the momentum is likely to pick up and the
pair could rally to the 61.8% Fibonacci retracement level at $419.473
and above it to the 78.6% retracement level at $449.669.
Contrary
to this assumption, if the pair turns down from the current levels, it
may again drop to the immediate support at $333. A break below this
level could retest the $308.392 support.
XRP/USD
The
rebound off the 20-day EMA ($0.244) for the past three days suggests
that the sentiment has turned from sell on rallies to buy on dips. If
the bulls can push and close (UTC time) the price above the horizontal
resistance at $0.26, XRP will complete an inverse head and shoulders pattern.
XRP/USD daily chart. Source: TradingView
This
reversal pattern has a target objective of $0.300288. The rising 20-day
EMA and the RSI is in the positive territory suggests that the path of
least resistance is to the upside.
However, if the pair
turns down from the current level or from $0.26, a few days of
range-bound action is possible. The trend will turn negative if the
bears sink the XRP/USD pair below the $0.219712 support.
BCH/USD
Bitcoin Cash (BCH)
broke above the downtrend line and the 20-day EMA ($226) on Oct. 8, and
the bulls are now trying to propel the price above the overhead
resistance at $242.
BCH/USD daily chart. Source: TradingView
The
20-day EMA has started to turn up and the RSI has risen into the
positive territory. This suggests that the bulls are attempting a
comeback. If the BCH/USD pair breaks out and closes (UTC time) above
$242, it could rally to $280.
Contrary to this
assumption, if the pair reverses direction from the current levels and
breaks below the 20-day EMA, a few more days of range-bound action is
possible. The trend will turn negative on a break below $200.
BNB/USD
Binance Coin (BNB)
is in an uptrend, and the long tails on Oct. 7 and 8 show that the
bulls are purchasing on dips to the 20-day EMA ($27.27). The altcoin has
formed a symmetrical triangle, which usually acts as a continuation
pattern.
BNB/USD daily chart. Source: TradingView
The
rising moving averages and the RSI is in positive territory suggest
that the path of least resistance is to the upside. If the bulls can
push the price above the triangle, the BNB/USD pair could rally to
$33.3888.
However, if the price turns down from the resistance line and breaks below the triangle, a drop to $22 is possible.
DOT/USD
The bulls aggressively defended the $3.5321 support for the past three days and did not allow Polkadot (DOT) to slip below it. If the bulls can now push the price above the 20-day EMA ($4.27) the altcoin could move up to $4.6112.
DOT/USD daily chart. Source: TradingView
If the momentum picks up and the bulls drive the price above $4.6112, the DOT/USD pair could move up to $5.5899.
However,
the bears are unlikely to give up easily. They will try to defend the
$4.6112 resistance, and if the price turns down from this level the pair
may remain range-bound for a few more days.
The trend will turn in favor of the bears on a breakdown and close (UTC time) below the critical support at $3.5321.
LINK/USD
Chainlink (LINK)
broke below the $8.7975 support on all the past three days, but the
bears could not sustain the lower levels. This shows that the bulls were
accumulating on dips.
LINK/USD daily chart. Source: TradingView
The
LINK/USD pair has risen above the 20-day EMA ($9.89) and the bulls will
now try to push the price above the downtrend line and the horizontal
resistance at $11.1990.
If they succeed, it will suggest a likely change in trend and the first target on the upside is $13.28 and then $17.7777.
However,
if the pair turns down from the downtrend line, the bears will make
another attempt to sink the price to the critical support at $6.90.
CRO/USD
Crypto.com Coin (CRO)
has formed a descending triangle, but the bears have not been able to
sink the price below the $0.144743 support. Unless the price breaks and
closes (UTC time) below this support, the pattern will not complete.
CRO/USD daily chart. Source: TradingView
If
the bulls can propel the price above the downtrend line, the bearish
setup will be invalidated and that could result in a move to the 50-day
SMA ($0.159) and above it to $0.171541.
The flattening 20-day EMA ($0.151) and the RSI just below the midpoint suggest that the bears are losing their grip.
Contrary to this assumption, if the CRO/USD pair turns down and breaks below $0.144743, a fall to $0.11 will be on the cards.
LTC/USD
Litecoin (LTC)
closed above the 20-day EMA ($46.74) on Oct.8, which is the first sign
of strength. However, the sellers are unlikely to give up easily, as
they will try to stall the recovery at the downtrend line and then again
at the $51 resistance.
LTC/USD daily chart. Source: TradingView
If the price turns down from either overhead resistance level, the LTC/USD pair could remain range-bound for a few more days.
However,
if the bulls can push the price above the downtrend line, a rally to
$51 is possible. A break above this resistance will be a huge positive
that may result in a new uptrend that could lead the price to $64.
BSV/USD
Bitcoin SV (BSV)
has once again risen above the 20-day EMA ($164), but it may face
resistance at the 50-day SMA ($171) and then at $179.473. If the price
turns down from either resistance, a few more days of range-bound action
is possible.
BSV/USD daily chart. Source: TradingView
The
20-day EMA has flattened out and the RSI has risen into the positive
territory, which suggests that the selling pressure has reduced.
If
the bulls capitalize on this advantage and propel the BSV/USD pair
above $180 the inverse head and shoulders pattern will complete and
start a new uptrend to $227.
This bullish assumption will be invalidated if the pair turns down from the 50-day SMA and plummets below $155.
source link : https://cointelegraph.com/news/price-analysis-10-9-btc-eth-xrp-bch-bnb-dot-link-cro-ltc-bsv
