Analyst Rakesh Upadhyay says that Bitcoin (BTC) and Ethereum (ETH) may pull back further in the coming days. This drop could shake weak hands in some altcoins. We start with developments across the market. BNB, ADA, SOL and SHIB will be among the coins that we will take a look at technical analysis.
What happened in Bitcoin (BTC) and altcoin markets?
Bitcoin (BTC) dropped below $60,000 yesterday after its October 20 ATH. While this presents a negative outlook in the short term, it continues to reflect the bull cycle of 2017. If the similarity continues, another run may await BTC bulls. Also, PlanB, the creator of the popular Bitcoin Stock-to-Flow (S2F) model, recently announced in a tweet that the second leg of Bitcoin’s bull market has begun.
The creator of the popular Bitcoin Stock-to-Flow (S2F) model, PlanB, recently announced in a tweet that the second leg of Bitcoin’s bull market has begun. If Bitcoin’s price action continues to follow the S2F pattern, the analyst believes a rally to $100,000 to $135,000 by the end of the year is possible. Meanwhile, according to a recent report from OKcoin board, investors’ appetite for non-Bitcoin cryptocurrencies is starting to increase. The report stated that 54% of purchases by institutional investors in September were focused on altons. So, is the current low of BTC price an opportunity? Or is it just the beginning of the fix? For answers, we take a look at analyst Rakesh Upadhyay’s technical analysis.
Bitcoin (BTC) technical analysis
Bitcoin (BTC) failed to retest the $64,854 to $67,000 resistance zone on October 25, which may have caused short-term traders to post profits. Thereafter, the price declined below the $58,948 strong support level. A break and close below $58,948 will be the first sign that the bullish momentum may weaken. If the bulls fail to quickly retrace the level, selling could accelerate and BTC price could drop to $52.920. On the technical side, the RSI has dropped to the midpoint and the 20-day EMA is flattening, suggesting a balance between supply and demand. According to the analyst, if the BTC price drops below 51, 556 and continues, this advantage will shift in favor of the bears. On the other hand, a break to the ATH level will indicate that the bulls are in command again.
ETH price surpasses $4,000 after BTC correction
Ethereum bulls tried to maintain the uptrend on October 26 and 27, but failed to sustain the price above $4,200. This indicates that the bears are active at higher levels. Sellers pushed the price down to $3,869, an important support to consider. A bounce from this level will indicate that traders are buying the lows. The bulls will then try to continue the uptrend again. Conversely, if the 20-day EMA is breached, it will signal that traders are taking profits and supply is outpacing demand. The bears will then try to pull the price towards the 50-day SMA ($3,488).
Binance Coin (BNB) technical analysis
Binance Coin (BNB) has dropped from the resistance level and dropped below the 20-day EMA ($462) today. This could be the first sign that the bullish sentiment may weaken. The long wicks of the day show that the bulls are trying to defend the neckline of an inverted head and shoulders pattern. If they are successful, BNB could again attempt to rise to the overhead resistance at $518.90. A break and close above this resistance could signal a resumption of the uptrend. Conversely, a close below the neckline could drag the price down to $423. If this support is breached, the next stop is located at $392.20. The horizontal MAs and the RSI near the midpoint show no clear advantage for the bulls or bears.
Cardano (ADA), silent on BTC rally
In Cardano (ADA), narrow gap trading between the 20-day EMA ($2.15) and the support line of the symmetrical triangle was resolved to the downside on Oct. This suggests that the bears are asserting their superiority. Sellers pushed the price below $1.87 on Oct. 27, but long wick candles indicate that the bulls are trying to defend the support. The recovery attempt is likely to face strong resistance at the 20-day EMA. If the price breaks from the 20-day EMA, the bears will again attempt to break the $1.87 support. If this happens, ADA could resume its downward move from $1.58 to the formation target. Later, the bulls will have to push and sustain the price above the resistance line of the triangle to invalidate the negative sentiment.
Solana (SOL) consolidates for $218 ATH
Solana (SOL) surpassed the $216 resistance on Oct. 25, but the bulls failed to continue. This may indicate that short-term traders are pulling the price down to $177 by booking profits. The long wick candles of October 27 show that the sentiment is positive and the bulls are buying on dips to the 20-day EMA. Buyers will now try to push the price above the overhead resistance again. If successful, the SOL price could resume the uptrend with the formation target of $239.83. Contrary to this assumption, if the bears sink the price below $171.47, it could extend to the downtrend line. A break below this support will signal a possible trend reversal.
Ripple (XRP) technical analysis
Ripple (XRP) bulls pushed the XRP price above the downtrend line on Oct. 26, but the day’s long wick candles show that the strength is running out for higher highs. This may have resulted in a strong sell-off on Oct. 27, trapping the aggressive bulls. A close below the $1 support will complete a descending triangle formation that could pull it into the strong support zone between $0.88 and $0.85. If this zone fails to stop the decline, XRP could decline to the $0.77 formation target. On the technical side, the 20-day EMA ($1.08) is stable but the RSI has dropped into negative territory, indicating that the bears are joining a strong reversal. This negative view will be invalidated if the bulls push and sustain the price above the downtrend line. XRP could then clear its way to $1.24, according to the analyst.
Polkadot (DOT) technical analysis
The failure of Polkadot (DOT) price to break above the $46.39 resistance on October 26 may have caused short-term traders to sell. This brought the price down to the strong support at $38.77 on Oct. 27. Long wick candles on October 27 show that the bulls are on the defensive if the support is strong. If buyers can push the price above $46.39, DOT price could continue its upward move and challenge the ATH level of $49.78. Alternatively, if the bulls fail to break through the overall hurdle, SHIB could consolidate between $46.39 and $38.77 for a few days. A break and close below $38.77 could mark the start of a deeper correction to $35.14.
Dogecoin (DOGE) overshadowed by SHIB
Dogecoin (DOGE) dropped from $0.28 on October 24, showing traders liquidating positions in rallies. The bulls tried to push the price back above the overhead resistance of $0.27 on October 26 but failed. Selling accelerated on October 27 after bears pushed the price below 0.24. This resulted in a decline near the strong support zone of $0.21 to $0.19. The long wick of the day shows that traders continue to defend the support zone. On the technical side, the 20-day EMA has flattened and the RSI is just below the midpoint, suggesting possible range-bound action in the near term. DOGE’s next trend could start with a close above $0.28 or below $0.19.
Shiba Inu (SHIB) technical analysis
SHIB price is in a strong uptrend. The long wicked candles of October 24 show that the bears tried to stop the rise at $0.00004465 but were unable to sustain it. Buying resumed in October and the price of the meme coin continued its upward march. The SHIB rally brought the RSI closer to the 90 level, which indicates that the rally may be overextended in the short term. However, this does not guarantee that the correction will begin, as the RSI had climbed above 93 on October 6 before a pullback took place. The bulls kept the SHIB price 161% at $0.00006531 during this period. 8 Fibonacci extended above the extension level. If the price stays above this level, the next stop could be the 200% extension level at $0.00007586. Vertical rises are rarely seen and usually end with sharp falls. Therefore, chasing higher prices after the last rally can be risky.
Terra (LUNA) technical analysis
Cryptocoin. com LUNA price broke above the $45.01 resistance on October 26, but as seen in the long wick candles of the day, the bulls could not continue higher levels. The bears tried to seize this opportunity and pushed the price below the $39.75 support on October 27, but the bulls continued to buy on the decline to the daily SMA ($38.16). If the price stays above $39.75, LUNA bulls may attempt to push the price back to $45.01. Conversely, if the price dips below the 50-day SMA, the price could slide back to the strong support zone of $34.86 to $32.50. The bulls need to defend these levels because a break below could increase selling pressure.