Bitcoin (BTC) has surpassed the resistance zone of $31,000 to $32,400 on October 23, surprising many market participants. Typically, the price of Bitcoin consolidates or hesitates near strong overhead resistance levels, but this time it continued to rise.
Market participants are optimistic as they anticipate the approval of a Bitcoin spot exchange-traded fund (ETF) in the near future. ETF analyst Eric Balchunas from Bloomberg stated in a post on X (formerly Twitter) on October 23 that the listing of BlackRock’s spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) was part of the process of bringing the ETF to the market. He suggested that this could be a signal that approval is imminent. However, a spokesperson from DTCC later clarified that the listing has been there since August and does not indicate regulatory approval.
Investors are rushing to buy Bitcoin in anticipation of an ETF approval, as analysts expect prices to surge after receiving the green light. Charles Yu, a research associate at Galaxy Digital, stated in a blog post that Bitcoin’s price could potentially increase by 74.1% in the first year after a US-based ETF is launched.
The recent rally in Bitcoin raises the question of whether it marks the beginning of a sustained upward movement or if it’s time to book profits. Additionally, the behavior of altcoins as Bitcoin shows strength is a point of interest. Analyzing the charts of the top 10 cryptocurrencies can provide some insights.
Bitcoin’s price has skyrocketed above the $31,000 to $32,400 resistance zone, indicating a resumption of the uptrend. The relative strength index (RSI) has entered the overbought territory, which is common in the early stages of a new bull move. The important support levels to watch are $32,400 and $31,000. If the price bounces back from these levels, the bulls will attempt to drive the price towards $40,000. However, a fall below $31,000 could suggest that the recent breakout was a bull trap.
Ether (ETH) has broken above the range and resistance level of $1,746, potentially signaling a change in trend. The important level to watch on the downside is $1,746, and if bulls hold this level during a retest, the ETH/USDT pair may rise above $1,855. This could open the doors for a rally towards $1,900 and $2,000. On the other hand, a fall below $1,746 could extend the consolidation period.
BNB (BNB) rallied above the immediate resistance of $223 but struggled to clear the hurdle at $235. If sellers manage to pull the price back below $223, the BNB/USDT pair may continue to trade between $203 and $235. However, if the price turns up from $223, it would suggest that bulls are buying on dips and improve the chances of a rally above $235 towards $250 and $265.
XRP (XRP) broke above the resistance of the range between $0.41 and $0.56 on October 24 but faced selling pressure. If the price reaches the moving averages, it could remain within the range for a few more days. However, if the price turns up from the current level and breaks above $0.56, it would indicate the start of a new upward movement towards $0.66 and $0.71.
Solana (SOL) reached its target of $32.81 before experiencing a short-lived correction. The sentiment remains bullish, and every minor dip is being bought. If the price slips below $29.50, the pair may tumble to $27.12, but if it continues to rise above $32.81, it could skyrocket to $38.79.
Cardano (ADA) broke above the resistance of $0.28 but faced selling pressure. If the price slips and sustains below this level, the breakout may be rejected, and the pair may consolidate within the range of $0.24 to $0.28. However, if the price rebounds and rises above $0.30, it would indicate that the bulls have flipped the level into support and could start a new upward movement towards $0.32 and $0.38.
Dogecoin (DOGE) encountered heavy selling at $0.07, indicating a potential period of correction or consolidation. If the pair does not give up much ground during this time, it would suggest that bulls are not closing their positions quickly and could lead to a break above $0.07 towards $0.08. However, if the price falls below $0.06, bears would gain control.
Toncoin (TON) faced resistance at $2.31, with the support at the moving averages. If the price rebounds from the moving averages, it would suggest positive sentiment and potential for a break above $2.31 towards $2.59. On the other hand, if the price breaks below the moving averages, it may consolidate between $1.89 and $2.31.
Chainlink (LINK) broke out of a multi-month consolidation and faced attempts to pull the price back below $9.50. However, strong buying at lower levels suggests a continuation of the upward movement. The pattern target is $13.50, but if the price surpasses this level, it could reach $15. To prevent the upside, bears need to bring the price below $9.50.
In summary, Bitcoin’s rally above the resistance zone has generated optimism for a potential Bitcoin spot ETF approval, leading investors to buy Bitcoin in anticipation of price surges. The charts of various cryptocurrencies suggest potential upward movements, but key support and resistance levels must be closely monitored to gauge future price actions.