As a seasoned trader with years of experience under my belt, I’ve seen my fair share of market patterns and trends. The symmetrical triangle formation on THORChain (RUNE) caught my attention. Given my past experiences, I can tell you that these patterns often signal a continuation of the prevailing trend after breakout.
This week, Bitcoin (BTC) has dropped by slightly more than 2%. However, it’s worth noting that the price hasn’t fallen below $65,000 due to the intervention of buyers, which kick-started a recovery. As a result, Bitcoin surpassed $67,500 on October 27th. Kraken analysts predict that as long as Bitcoin maintains an upward trajectory above $66,500, its overall trend will likely remain optimistic.
On the other hand, not all experts are optimistic about Bitcoin’s short-term future. In a recent post, crypto analyst Luca predicted that Bitcoin might experience a further drop to around 60K, followed by the confirmation of a temporary low point.
Multiple experts anticipate a surge in altcoins following Bitcoin’s influence falling below 60%. Anonymous cryptocurrency trader Willy Woo suggested that an altcoin boom is imminent, though he noted that the strength of each subsequent cycle since the significant 2017 altcoin bubble will diminish.
Is the surge of Bitcoin beyond $70,000 potentially a good moment for purchasing other cryptocurrencies temporarily? Let’s examine the five leading digital currencies with robust chart performance.
Bitcoin price analysis
On October 25th, merchants attempted to push Bitcoin down below its 20-day exponential moving average ($66,201), but buyers refused to yield. This indicates a continuing optimistic outlook among investors, as they are seen purchasing during price drops.
To initiate a new upward trend and reach the upper limit of $73,777, buyers need to push the price beyond $69,550. This level at $70,000 offers some resistance, but it’s likely that it will be surpassed. As the BTC/USDT pair advances, it may reach approximately $72,000. However, at this level, the bulls are anticipated to encounter strong opposition from the bears.
In a negative scenario, if the bears take control and push the price below $65,000, it might lead to a decline. This decline could potentially reach the 50-day simple moving average, currently at $63,259. Further down, the key support level at $60,000 could come into play.
On the 4-hour chart, the moving averages appear level, suggesting a slowing down of price trends, and the Relative Strength Index (RSI) hovers slightly above its midpoint, signaling a near equilibrium between market supply and demand.
To show signs of strength, buyers must push the price beyond the falling trendline, potentially causing a surge towards $70,000. Alternatively, if the price falls below $66,500 and concludes there, it gives an edge to the bears, and the pair might drop down to $65,000. This level is crucial to observe closely. If this support weakens or breaks, the pair could plunge as low as $62,000.
Solana price analysis
On October 20th, Solana (SOL) surpassed a rising triangle formation, and the bulls managed to maintain the earlier breakout point when it was re-tested on October 25th.
The rising moving averages and RSI values over 65 indicate that bulls have control of the market. There’s a slight barrier at $179, but if this is overcome, the price of SOL/USDT might surge to $189. However, traders are likely to vigorously protect the $189 level, as a break below it could lead to a drop towards $210.
To halt the price increase, bears might need to act quickly by pulling the price down beneath the 20-day Exponential Moving Average (around $161). If they succeed, the pair could potentially fall towards the 50-day Simple Moving Average ($148).
The rising prices have gone above their moving average (20-EMA), but a slowing trend in strength (as indicated by the RSI) suggests bears might try to stop this upward movement near $179. If the price drops from this resistance level and falls below the 20-EMA, it could mean that stronger bear activity is occurring at higher levels. In such a case, the pair may revisit its previous support at $164.
Should the bulls successfully break through the $179 barrier, this could indicate a reinitiation of the upward trend, potentially leading the pair towards $189.
Dogecoin Token price analysis
As a researcher observing the cryptocurrency market, I’ve noticed an intriguing development with Dogecoin (DOGE). On October 18, DOGE managed to break free from a symmetrical triangle pattern, signaling a potential upward trend. Interestingly, on October 25, the bulls demonstrated resilience by successfully defending the pullback to the breakout level, suggesting that the momentum may continue in the same direction.
For the next 20 days, the Exponential Moving Average (EMA) is projected to increase, currently at around $0.13, and the Relative Strength Index (RSI) indicates a positive trend, suggesting that the buyers are dominating the market. If buyers manage to keep the price above the resistance level of $0.15, the Dogecoin-Tether pair might experience a significant upward movement, potentially reaching $0.17 initially and then possibly advancing towards $0.19 in the future.
If the price decreases from its current position or fails to break through the resistance level and falls back into the triangle, this could indicate that the market is not accepting the breakout. In such a case, the pair might drop towards the 50-day Simple Moving Average ($0.11).
Buyers have pushed the price above the resistance line of the descending channel pattern, indicating a potential trend change in the short term. The pair will next attempt a rally above the overhead resistance of $0.15.
Keep an eye on the 20-day Exponential Moving Average (EMA) as potential support on the downside. If the price falls and drops below this EMA, it might indicate that the breakout from the channel was a false signal, often referred to as a “bull trap.” In such a case, the pair could potentially drop towards the channel’s lower boundary.
THORChain price analysis
THORChain’s RUNE token is currently exhibiting a symmetrical triangle pattern, often serving as a sign for a potential continuation of its previous trend after breaking out from this formation.
1) Based on the 20-day Exponential Moving Average (currently at $5.04) and Relative Strength Index (RSI) slightly above the midpoint, there seems to be a slight edge for the bulls. If the price breaks through and closes above the triangle, it suggests the commencement of the next phase in the uptrend. The RUNE/USDT pair could potentially reach $5.71 initially, followed by a potential target of $6.76.
If the price decreases sharply and falls beneath the triangle in the short term, this optimistic perspective could prove incorrect. The value might drop to $4.42 initially, followed by a further decline to approximately $3.80.
The prices are currently being driven higher than their average values by the bulls, and a technical indicator called RSI has moved into positive zones, suggesting that the bulls have control. If they continue to dominate, the price might reach a level where bears could offer strong opposition. But if the bulls maintain their lead, this could potentially mark the beginning of another upward trend.
If the price falls dramatically beneath the resistance level instead of soaring past it, this could indicate that the pair might stay within the triangle for a longer duration. In such a case, the bears would have the upper hand should the pair break through the support level.
Bitget Token price analysis
Over the last several days, Bitget Token (BGB) has been steadily rising, suggesting that the bullish sentiment is dominating.
On October 24th, the price fell below its previous resistance of $1.22, but was prevented from dropping lower than the 20-day Moving Average ($1.12) by the bulls. The buyers are planning another attempt to push the price past the previous resistance. If they succeed, the BGB/USDT pair could potentially increase to $1.34 and later to $1.43.
If the price drops and falls beneath the 20-day Exponential Moving Average (EMA), this optimistic outlook could be reversed, indicating that the buyers are taking their gains. In such a case, the pair might move towards the 50-day Simple Moving Average ($1.03).
On a 4-hour chart, the 20-Exponential Moving Average is becoming less sloped, and the Relative Strength Index (RSI) is hovering slightly below the middle point. This could indicate a potential period of sideways movement in the near future. If the price falls beneath the 50-Simple Moving Average, it might dip to $1.14. A significant rebound from $1.14 would suggest buyers are entering at lower prices. Over time, the pair may fluctuate between $1.14 and $1.21.
If the price falls below $1.14, it suggests that the sellers have regained control, potentially causing the pair to decrease further, reaching as low as $1.12 initially, followed by a potential fall to $1.09 in the future.
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2024-10-28 00:19