Bitcoin resumed its rally on Oct. 11, climbing to nearly $58,000. That marks an almost 100% recovery from May's slump and suggests any regulatory action by China will have only a short-lived impact.
Bitcoin’s strong gains over the past few days have boosted market sentiment, with analysts back to six-figure forecasts. Geoffrey Kendrick, head of emerging market currency research at Standard Chartered, expects bitcoin to hit $100,000 by early next year.
Daily cryptocurrency market performance Source: Coin360
David Gokhshtein, founder of Gokhshtein Media and PAC Global, is even more bullish, predicting that Bitcoin will hit $100,000 by the end of the year. Analyst and trader Rekt Capital believes that Bitcoin will rise well above $100,000 in the current cycle.
Can Bitcoin Break Strong Overhead Resistance to Challenge All-Time Highs? Can altcoins catch up? Let’s take a look at the chart of the top ten cryptocurrencies.
Bitcoin’s long shadow on Oct. 10 shows bears selling at higher levels, but their failure to pull the price below the $52,920 breakout level seems to have energized the bulls.
BTC/USDT daily chart source: TradingView
The buying spree on Oct. 11 pushed the price above the intraday high of $56,561.31 on Oct. 10, paving the way for a possible rally to $60,000. A rising 20-day exponential moving average (EMA) ($50,196) and a relative strength index (RSI) in overbought territory suggest that the bulls are in control.
If the bulls push the price above $60,000, BTC/USDT could challenge the all-time high of $64,854. If buyers clear this hurdle, the bullish momentum could gain further momentum.
The first sign of weakness will be a break and close below the breakout level of $52,920. This would indicate profit-taking by traders at higher levels. The bears will then spot an opportunity and try to pull the price below the 50-day simple moving average (SMA) ($47,727).
Ethereum’s ETH turned sharply lower on Oct. 10, but on Oct. 11, bulls bought aggressively when the price fell to the 20-EMA ($3369). This is a positive sign as it shows that sentiment remains bullish and traders are buying on dips.
ETH/USDT daily chart source: TradingView
If the bulls push the price higher and close above the neckline, the inverted head and shoulders (H&S) pattern will be completed. This reversal pattern has a target of $4,657, but the bears may have other plans as they will try to establish strong resistance at $4,027.88 and the all-time high of $4,372.72.
This bullish view will be negated if the price pulls back from the overhead resistance and breaks below the 50-SMA ($3351). ETH/USDT may fall to the psychological support of $3,000.
On Oct. 8, BNB broke down and closed below the 50-SMA ($425). The bulls tried unsuccessfully to push the price back above the 50-SMA on Oct. 9, causing short-term traders to sell.
BNB/USDT daily chart source: TradingView
BNB/USDT plunged below the 20-EMA ($409) on Oct. 10, but bears were unable to capitalize on the opportunity. On Oct. 11, strong buying at lower levels pushed the price back above the 20-EMA.
If the bulls push the price above the 50-SMA, BNB/USDT could rise to the neckline. A breakout and close above this level will complete the reversal H&S pattern. BNB/USDT could then rise to $518.90, and if this level is breached, the rally could extend to the pattern target of $554.
Conversely, if the price turns down from the 50-SMA or neckline and breaks below the 100-SMA ($383), a drop to $320 could be next.
ADA is trading inside a symmetrical triangle, which is usually a continuation pattern. If the bears sustain the price below the support line of the triangle, the correction may resume.
ADA/USDT daily chart source: TradingView
The flattening 20-EMA ($2.24) and RSI just below the midpoint offer no clear advantage to either the bulls or the bears. The bulls will try to stop the price from falling at $1.94, but if they fail to do so, the sell-off could accelerate and ADA/USDT could drop to $1.60.
Alternatively, if the price bounces off the support line of the triangle and rises above the 20-EMA, the bulls will attempt to push ADA/USDT above the resistance line of the triangle. If they succeed, ADA/USDT could rise to $2.47 and then to $2.80.
On Oct. 9, XRP’s tight range trade resolved the upside, breaking out and closing above the 50-SMA ($1.08). However, the long wick from October 10 shows that the bears are defending the minor resistance at $1.24.
XRP/USDT daily chart source: TradingView
If the bulls do not give up too much ground from current levels, the chances of a break above $1.24 will increase. The 20-EMA ($1.06) is slightly higher and the RSI is above 60, which bodes well for buyers.
A breakout and close above $1.24 could push XRP/USDT to $1.41. This could prove to be an insurmountable hurdle, but once broken, XRP/USDT could rise to $1.66. This bullish view will be invalidated if the price turns lower and breaks below the 20-EMA. This could drag the price down to $1 and then to the 100-SMA ($0.93).
SOL rebounded slightly from the 20-EMA ($151) on Oct. 8 and Oct. 9, indicating a lack of aggressive buying by the bulls. Supply exceeded demand on October 10, and the price fell below the 20-EMA.
SOL/USDT daily chart source: TradingView
The bulls will now attempt to defend the 50-SMA ($141). They will have to push and sustain the price above the downtrend line to signal that selling pressure is easing. The bullish momentum could pick up on a break and close above the 61.8% Fibonacci retracement level at $177.80.
Conversely, if the price turns lower and breaks below the 50-SMA, SOL/USDT could drop to the strong support at $116. This is an important level for bulls to defend, as a break below this level could see SOL/USDT plunge towards the 100-SMA ($90).
Although the bulls held the 100-SMA ($0.24) on Oct. 8 and Oct. 9, they were unable to push DOGE above the 50-SMA ($0.24). This suggests that demand is drying up at higher levels. The bears took advantage of the situation and pulled the price below the moving averages on October 10.
DOGE/USDT daily chart source: TradingView
If the bulls fail to push the price back above the moving averages quickly, DOGE/USDT could drop to the $0.21 to $0.19 support zone. Bears must break this support zone to gain the upper hand.
Conversely, if the price turns up and breaks above the moving averages, the bulls will make another attempt to push the price above the downtrend line. If they succeed, DOGE/USDT could start an upward move towards $0.32 and then $0.35.
DOT has been fluctuating between $25.50 and $38.77 for the past many days. The price retreated from $37.45 on Oct. 10, showing that the bears are defending the overhead resistance.
DOT/USDT daily chart source: TradingView
The rising moving averages and RSI in positive territory suggest that buyers have a slight advantage. A breakout and close above $38.77 would be the first sign of a resumption of the upside.
The pattern target for the breakout from the rectangle formation is $52.04. Alternatively, if the bears pull the price below the moving averages, it would indicate that DOT/USDT could remain within the range for a few days.
Terra Protocol’s LUNA token turned down from $48.56 on Oct. 8, indicating that bears are aggressively defending the $50 overhead resistance. Failure to break above this resistance could prompt short-term traders to take profits.
LUNA/USDT daily chart source: TradingView
On October 10, LUNA/USDT slipped and closed below the 20-EMA ($39.64). Bulls' attempts to reclaim that level were met with strong selling on Oct. 11, a sign that sentiment had turned negative, with traders closing positions at every minor advance.
The next support on the downside is the 50-SMA ($35.58), below which the decline could extend to $32.50. Conversely, if the price turns up from current levels and rises above the 20-EMA, the bulls may try again to push LUNA/USDT above the overhead resistance.
UNI broke below and closed below the 20-EMA ($24.45) on Oct. 10, but the bulls are attempting to defend the 100-SMA ($23.76). Buyers will now attempt to push the price back above the 50-SMA ($25.05).
UNI/USDT daily chart source: TradingView
If they succeed, UNI/USDT could rise to the neckline of the inverted H&S pattern. The bullish momentum could pick up if buyers push the price higher and sustain it above this resistance level. Then UNI/USDT may start to climb towards the pattern target at $36.98.
Contrary to this assumption, if the bears pull the price below the 100-SMA, UNI/USDT could drop to $22. This is an important level for bulls to defend, as if it breaks, the sell-off could intensify and UNI/USDT could drop to $18.
Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.
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