Bitcoin (BTC), has fallen below $60,000. Although this may seem to be a negative short-term, the price action continues to follow its 2017 movement. Bitcoin bulls could be in for a good time if the trend continues throughout the year.
PlanB, the creator of the Bitcoin Stock-toFlow (S2F), model, announced recently in a tweet that the second leg has started for Bitcoin’s bull. The analyst predicts that Bitcoin could rally from $100,000 to $135,000 if the price action continues to follow S2F’s model.
Everyday cryptocurrency market performance. Source: Coin360
While Bitcoin is the most popular cryptocurrency, Okcoin stated in a report that institutional investors are increasingly interested in non-Bitcoin digital assets. According to the report, 53% of institutional investors’ September purchases were made in altcoins.
Is Bitcoin’s current decline a buying opportunity? Or the beginning of a deeper correction. What is the expected reaction of altcoins? Let’s look at the charts for the top 10 cryptocurrency coins to see how they will react.
Bitcoin failed to test the overhead resistance zone of $64,854 to 67,000 on Oct. 25, and this may have caused short-term traders not to book profits. This has caused the price to fall to the support at the 20 day exponential moving average (EMA), ($58,948).
Daily chart of BTC/USDT Source: TradingView
The first sign that bullish momentum is weakening is a break below the 20-day EMA. If the bulls fail quickly to regain the level, selling could accelerate and BTC/USDT could fall to $52,920.
The relative strength index (RSI), has fallen to the midpoint, and the 20-day EMA seems flattening out. This suggests a balance between supply/demand.
If the pair falls below the 50-day SMA (Simple Moving Average) ($51,556), this advantage will swing in favor of bears. A breakout to an all-time high would indicate that the bulls are in control.
On Oct. 26 and 27, the bulls attempted to reestablish the Ether (ETH uptrend), but the price did not rise above $4,200. This indicates that bears may be active at higher levels.
Daily chart of ETH/USDT Source: TradingView
The sellers have pulled down the price to the 20 day EMA ($3,869). This is an important support indicator to watch. The strong rebound from the 20-day EMA will indicate that sentiment is positive and traders are buying dips. The bulls will attempt to reestablish the uptrend.
Contrarily, if the 20 day EMA breaks, it will indicate that traders could be making profits and the supply exceeds the demand. The bears will attempt to push the price down to the 50-day SMA ($3,488).
Binance Coin (BNB), which was resisting overhead resistance, broke below the 20 day EMA ($462) today. This is the first sign the bullish sentiment may be waning.
Daily chart BNB/USDT TradingView
Today’s candlestick has a long tail that indicates bulls are trying to defend the neckline for the inverse head-shoulder pattern.
If they succeed, the BNB/USDT pairing could attempt to rally to $518.90 overhead resistance. Breaking and closing above this resistance could signal the start of an uptrend.
A close below the neckline could push the price towards the 50-day SMA ($423). The next stop is $392.20 if this support is broken. The flattish moving averages, and the RSI close to the midpoint don’t indicate a clear advantage for bulls or bears.
Cardano’s tight trading range between the 20-day EMA ($2.15) et the support line for the symmetrical triangular triangle ended on Oct. 27, to the downside. This indicates that bears have reaffirmed their dominance.
Daily chart ADA/USDT Source: TradingView
Although the sellers managed to pull the price down below $1.87 on October 27, the candlestick’s long tail suggests that bulls are trying to defend the support. The 20-day EMA is likely to be a strong resistance for the recovery effort.
The bears will attempt to break the $1.87 resistance if the price falls below the 20-day EMA. The ADA/USDT pairing could resume its down move towards the $1.58 pattern target.
To invalidate the negative outlook, the bulls must push the price higher than the resistance line at the triangle.
Solana (SOL), broke above the overhead resistance of $216 on Oct. 25, but the bulls couldn’t sustain the breakout. This could have led to short-term traders taking profit and pushing the price up to the 20-day EMA ($177).
Daily chart of SOL/USDT Source: TradingView
The candlestick of Oct. 27 shows a long tail, which suggests that sentiment is positive and bulls continue to buy on dips to 20-day EMA. The buyers will attempt to push the price higher than the overhead resistance.
If they succeed, then the SOL/USDT pairing could resume its uptrend with the next objective at $239.83. This assumption is incorrect. If bears pull the price lower than $171.47, it could prolong the fall to the trendline. A break below this support could signal a trend change.
Ripple (XRP), which was above the downtrend line Oct. 26, could be pushed higher by the bulls, but it couldn’t sustain higher levels as shown by the candlestick’s long wick. This could have caused aggressive bulls to be trapped, which led to strong selling on October 27.
Daily chart of XRP/USDT Source: TradingView
If the $1 support is reached, a descending triangle formation will be completed. This could bring the price to the strong support zone of $0.88 to $0.85. The XRP/USDT pair may extend the slide to $0.77 if this zone fails to stop the decline.
The 20-day EMA ($1.08) remains flat, but the RSI dropped into the negative zone. This indicates that bears are making a strong comeback. If bulls push the price higher than the downtrend line, this negative view will be invalidated. This could open the way for a rally to $1.24.
Short-term traders may have sold because Polkadot (DOT) failed to surpass the overhead resistance of $46.39 on October 26. This caused the price to fall below the support level of $38.77 on October 27.
Daily chart of DOT/USDT Source: TradingView
The candlestick of Oct. 27 shows that bulls are fighting for the support with great force. The DOT/USDT pair could regain its upward momentum if buyers push it above $46.39 and challenge the record $49.78.
If bulls are unable to clear the overhead hurdle, they may continue to consolidate the pair between $46.39-$38.77 for a few more days. Breaking below $38.77 could indicate a deeper correction of the 50-day SMA ($35.14).
Related: Shiba inu could surpass Dogecoin following a 700% SHIB price rise in October
Dogecoin (DOGE), which was $0.28 on Oct. 24, has declined to $0.28, indicating that traders are selling off positions during rallies. The bulls tried again to push the price higher than the $0.27 overhead resistance, but this time it failed.
Daily chart of DOGE/USDT Source: TradingView
After bears had pulled the price below its 20-day EMA ($0.24), the selling accelerated. The price fell close to the $0.21- $0.19 support zone. The candlestick’s long tail suggests that traders are continuing to defend the support area.
The 20-day EMA is flattened and the RSI just below the midpoint suggests a potential range-bound move in the near-term. A break above $0.28 and a close below $0.19 could be the next trending move.
SHIBA INU is currently in an uptrend. The Oct. 24 candlestick’s long wick shows that bears attempted to stop the up-move at $0.000044655, but they couldn’t sustain the selling pressure. The meme coin’s northward march resumed on October 25, and buying resumed on Oct. 25.
Daily chart of SHIB/USDT TradingView
The strong rally has pushed RSI to the 90 level. This suggests that the rally might be too extended in the short-term. This does not mean that a correction will occur as the RSI was at 93 on Oct. 6, before a pullback occurred.
Bulls have lifted the SHIB/USDT price pair above $0.00006531, the 161.8% Fibonacci extension. The next stop for the price could be at the 200% extension level at 0.00007586 if it holds above this level.
Vertical rallies are not sustainable and often end in waterfall declines. It is possible to be risky by chasing higher prices after the rally.
The LUNA token of Terra protocol broke above $45.01 overhead resistance on Oct. 26, but the bulls couldn’t sustain higher levels, as evident from the candlestick’s long wick.
Daily chart of LUNA/USDT Source: TradingView
The bears saw an opportunity and pulled the price down below $39.75 on Oct. 27. However, a minor plus is that bulls purchased the dip to the 50 day SMA ($38.16). The bulls could push the LUNA/USDT price to $45.01 if the price holds above $39.75.
However, if the price falls below the 50-day SMA, it could cause the pair to drop to the strong support zone of $34.86 to $22.50. The bulls should defend this zone as a potential selling trigger.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.