Connect with us

    Hi, what are you looking for?

    News

    Bitcoin Price Crossed $30K Mark, Opening Possibility For Other Cryptocurrencies

    Bitcoin (BTC) has had a successful week, seeing a 10% increase in price to reach the important $30,000 level. Now, investors are questioning whether the upward trend will continue or if a reversal is imminent.

    The Stockmoney Lizards trading team believes that Bitcoin may soon break its overhead resistance and embark on a significant rally. They anticipate that the approval of an exchange-traded fund (ETF) will drive widespread adoption and trigger the rally prior to the halving event in April 2024.

    A positive development this week is that Bitcoin’s strength is spreading to several altcoins, which have surged above their respective resistance levels. This indicates a gradual shift towards positive sentiment and suggests it may be a good time for selective buying.

    Typically, the coins that lead the market upward tend to perform well, while the laggards are usually the last to show growth and can be avoided initially.

    Let’s analyze the charts of the top-5 cryptocurrencies that could outperform in the near future.

    Bitcoin Price Analysis

    Bitcoin is currently facing a battle between the bulls and the bears near the $30,000 mark. However, the fact that buyers are not giving up much ground indicates a positive sign.

    The consolidation near the current level suggests that the bulls are not rushing to take profits, indicating the potential for another upward move. This could push the price towards the overhead resistance zone between $31,000 and $32,400.

    If the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). However, if it bounces back from this level, the bulls will attempt to clear the overhead hurdle once again.

    A break below the 20-day EMA would negate the positive sentiment, potentially keeping the pair stuck in the $31,000 to $24,800 range for some time.

    The 4-hour chart shows an uptrend for the pair. During such an ascent, traders typically buy the dip to the 20-EMA. If this occurs, it would confirm bullish sentiment and suggest that every minor dip is being purchased, potentially leading the pair to $32,400.

    Conversely, a skid below the 20-EMA would indicate that traders may be hastily closing their positions, opening the gates for further decline towards the important support level at $28,143.

    Solana Price Analysis

    Solana (SOL) recently broke out of a bullish inverse head and shoulders pattern by surpassing the neckline on October 19. This breakout has a target objective of $32.81.

    The overbought levels on the relative strength index (RSI) suggest that a correction may be possible. The crucial support level to monitor on the downside is $27.12. A strong bounce at this level would indicate that the bulls have successfully turned it into support, improving the prospects for further upward movement. If the price exceeds $32.81, the rally could extend to $39.

    For the bears to halt the upward momentum, they would need to bring the price back below $27.12. This could result in a decline to the neckline, which remains a critical level as a break below it would suggest that the earlier break above $27.12 might have been a fake-out.

    The 4-hour chart indicates strong resistance near $30 for the bulls. This may prompt a pullback towards the breakout level of $27.12. Buyers are expected to defend this level vigorously, and a substantial bounce would suggest a continuation of the upward trend.

    Conversely, a breakdown below $27.12 would signal aggressive selling by bears at higher levels. This could lead the pair to tumble towards the neckline near $24.50, which is likely to attract strong buying activity from bulls.

    Chainlink Price Analysis

    Chainlink (LINK) has been trading within a narrow range between $5.50 and $9.50 since May 2022, indicating a balance between supply and demand.

    The bulls attempted to break above the range on October 22, but the long wick on the candlestick indicates that the bears are putting up resistance. If the bulls maintain their position without losing much ground, the chances of a rally above $9.50 will increase.

    Should this occur, the LINK/USDT pair could target $13.50, with a breakout from the long consolidation resulting in a sharp rally. Subsequent targets could be $15 and $18.

    The initial support level on the downside is at $8.50. If the bears push the price below this level, it would suggest ongoing range-bound action.

    The pair experienced a sharp rally from $7.50, pushing the RSI deep into the overbought territory on the 4-hour chart. This indicates that the rally may be overextended in the near term, potentially leading to a pullback or consolidation.

    The solid support on the downside lies at $8.75 and subsequently $8.50. A strong bounce from this zone would suggest positive sentiment and increased buyer interest, increasing the likelihood of a retest of $9.75.

    A break below the 20-EMA, however, would indicate that bears have regained control. This would prompt a potential decline to $7.

    Related: Lightning Network faces criticism from pro-XRP lawyer John Deaton

    Aave Price Analysis

    Aave (AAVE) broke above the downtrend line on October 21, invalidating the bearish descending triangle pattern. Typically, the failure of a negative setup leads to a bullish move.

    Both moving averages have begun to turn upwards, and the RSI is in overbought territory, indicating an advantage for bulls. If the price remains above the downtrend line, the AAVE/USDT pair may surge towards $88 and then $95.

    To halt the upward momentum, bears would need to quickly pull the price below the downtrend line. This could catch a few bullish traders off guard and spark a correction towards the moving averages. A drop below the 50-day simple moving average ($62) would put bears back in control.

    The 4-hour chart shows that bears tried to stop the relief rally at the downtrend line, but bulls did not relinquish much ground. Momentum has increased, and the pair appears to be on its way towards $88.

    In the short term, the overbought RSI indicates the potential for consolidation or a correction. The initial support lies at $72. A break below the downtrend line would trap bulls and could result in a decline towards the moving averages.

    Stacks Price Analysis

    Stacks (STX) recently experienced a sharp rise, indicating that bulls are attempting to start a new uptrend.

    The bullish crossover on the moving averages suggests that bulls have an advantage. In the short term, the overbought RSI levels indicate the possibility of a minor correction or consolidation. The first support on the downside is at the 20-day EMA ($0.54).

    If the price bounces off this level, it would signify a change in sentiment from selling on rallies to buying on dips, increasing the likelihood of continued upward movement. The STX/USDT pair could target $0.80 and then $0.90.

    A break below the 20-day EMA would invalidate this positive view in the short term.

    On the 4-hour chart, the price has been consolidating in a tight range between $0.61 and $0.65. This indicates that bulls are not hastily exiting, as they anticipate further upward movement. If the price exceeds $0.65, the pair may rally to $0.68 and then $0.75.

    Alternatively, a break below the 20-EMA would signal profit-taking by short-term traders and potentially lead the pair to drop towards the 50-SMA.

    This article does not provide investment advice or recommendations. Each investment and trading decision involves risks, and readers should conduct their own research before making a decision.

    Image Source: Pierre Borthiry – Peiobty@Unsplash

    You May Also Like

    Crypto

    SBF received $1B in personal loans from Alameda: FTX bankruptcy filing Documentation related to FTX’s bankruptcy proceedings revealed the firm was mismanaged on multiple...

    Crypto

    One of the biggest factors differentiating Bitcoin (BTC) from fiat currency and most cryptocurrencies is the hard limit of 21 million on its total...

    Crypto

    Bitcoin (BTC) has flooded out of exchanges in the past week as users become wary of security and regulatory scrutiny. Data from on-chain monitoring...

    Bitcoin

    The approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) would equate to a “seal of approval” for Bitcoin from the United States government...