Bitcoin (BTC) has experienced a slight decline of just over 2% this week, but there is a positive sign as buyers have prevented the price from falling below $65,000. This has initiated a recovery, pushing Bitcoin above $67,500 on October 27th. According to analysts at Kraken, Bitcoin’s trend will likely remain positive as long as it stays above $66,500.
However, not everyone is optimistic about Bitcoin’s short-term prospects. Crypto analyst Luca suggests that Bitcoin could experience another drop to $60,000 before a local bottom is confirmed.
Several analysts have been anticipating a rally in altcoins after Bitcoin’s dominance reaches 60%. Pseudonymous crypto trader Willy Woo believes that an altcoin season will occur, but the intensity will be weaker compared to the alt bubble of 2017.
With Bitcoin surpassing $70,000, could this present a buying opportunity for altcoins in the short term? Let’s analyze the top 5 cryptocurrencies that show strength on the charts.
Bitcoin Price Analysis
On October 25th, sellers attempted to push Bitcoin below the 20-day exponential moving average ($66,201), but the bulls successfully held their ground. This indicates positive sentiment and suggests that traders are buying the dips.
To indicate a resumption of the upward movement, buyers will need to push the price above $69,550 and break through the resistance at $70,000. The BTC/USDT pair could then reach $72,000, where significant resistance from bears is expected.
On the downside, if the price breaks and closes below $65,000, the bears will gain control. In this case, the pair may slide to the 50-day simple moving average ($63,259) and later to the crucial support level at $60,000.
The 4-hour chart shows flattened moving averages and a relative strength index (RSI) just above the midpoint, indicating a balance between supply and demand. Buyers will need to push the price above the downtrend line to demonstrate strength. If successful, the pair could rally to $70,000. Conversely, a break and close below $66,500 would favor the bears, with a potential slump to $65,000. The essential level to watch out for is $60,000, as a crack in this support could lead to a drop to $62,000.
Solana Price Analysis
Solana (SOL) broke out of an ascending triangle pattern on October 20th, and the bulls successfully defended the retest of the breakout level on October 25th.
The upsloping moving averages and an RSI above 65 indicate that the bulls are in control. If the minor resistance at $179 is surpassed, the SOL/USDT pair could rally to $189. However, sellers are expected to strongly defend the $189 level, as a breakdown could lead to a further drop to $210.
To prevent an upward movement, bears will need to swiftly push the price below the 20-day EMA ($161). If successful, the pair may drop to the 50-day SMA ($148).
The 4-hour chart shows that the bulls have pushed the price above the 20-EMA, but there is negative divergence on the RSI, suggesting a slowdown in momentum. If the price turns down from the overhead resistance and breaks below the 20-EMA, it would indicate bearish activity at higher levels, potentially retesting the $164 support.
However, if the bulls break through the $179 resistance, it would signal a resumption of the uptrend, with a potential rally to $189.
Dogecoin Token Price Analysis
Dogecoin (DOGE) broke out of a symmetrical triangle pattern on October 18th, and the bulls successfully defended the pullback to the breakout level on October 25th.
The upsloping 20-day EMA ($0.13) and a positive RSI indicate that the bulls are in control. If buyers can maintain the price above the $0.15 resistance, the DOGE/USDT pair could surge to $0.17 and later to $0.19.
On the other hand, if the price turns down from the current level or the overhead resistance and re-enters the triangle, it would suggest a rejection of the breakout. In this case, the pair may descend to the 50-day SMA ($0.11).
The 4-hour chart shows that buyers have pushed the price above the resistance line of the descending channel pattern, indicating a potential trend reversal in the short term. The pair will attempt to rally above the overhead resistance of $0.15.
The 20-EMA is a critical support level to watch out for on the downside. If the price turns down and breaks below the 20-EMA, it would suggest that the breakout from the channel may have been a bull trap, potentially leading to a dip to the channel’s support line.
THORChain Price Analysis
THORChain (RUNE) has formed a symmetrical triangle pattern, which typically acts as a continuation pattern. If the breakout occurs, the trend that was in force prior to the pattern’s formation will likely resume.
The upsloping 20-day EMA ($5.04) and an RSI just above the midpoint suggest a slight advantage for the bulls. A break and close above the triangle would signal the start of the next leg of the uptrend, with the RUNE/USDT pair potentially rising to $5.71 and then to the pattern target of $6.76.
However, if the price turns down and plunges below the triangle, it would invalidate the positive view in the near term. The pair may then slump to $4.42 and later to $3.80.
On the 4-hour chart, the bulls have pushed the price above the moving averages, and the RSI has risen to the positive territory, indicating their upper hand. The price could reach the resistance line, where bears are expected to pose a strong challenge. If the bulls prevail, the pair may start a new up move.
Conversely, if the price sharply turns down from the resistance line, it would signal that the pair may remain inside the triangle for a while longer. The bears would be in control if the pair breaks below the support line.
Bitget Token Price Analysis
Bitget Token (BGB) has been gradually climbing in the past few days, indicating bullish control.
Although the price turned down from the $1.22 overhead resistance on October 24th, the bulls prevented it from falling below the 20-day EMA ($1.12). Buyers will attempt to push the price above the overhead resistance again. If successful, the BGB/USDT pair could rally to $1.34 and later to $1.43.
However, if the price turns down and breaks below the 20-day EMA, it would signal profit booking by the bulls. In this case, the pair may descend to the 50-day SMA ($1.03).
On the 4-hour chart, the 20-EMA is flattening out, and the RSI is just below the midpoint, suggesting possible range-bound action in the near term. If the price falls below the 50-SMA, the pair may drop to $1.14. A strong bounce off the $1.14 level would indicate buying at lower levels, potentially leading to a consolidation between $1.14 and $1.21.
However, a break below $1.14 would indicate that the bears are back in control. The pair may drop to $1.12 and later to $1.09.
Note: This article is for informational purposes only and does not constitute investment advice or recommendations. It is essential to conduct personal research before making any investment or trading decisions.