Bitcoin’s stagnant price action over the past few months has led to a drop in spot volumes, according to a report by Bloomberg. Coinbase’s spot trading volume saw a 52% decline in Q3 2023 compared to the same period in 2022. While the short-term outlook for Bitcoin remains uncertain, traders should be cautious as long periods of consolidation are often followed by significant price movements. However, it is difficult to predict the direction of the breakout. Despite the lack of a price dip below $25,000 in recent months, there is an increasing likelihood of an upside breakout.
Noted investor Paul Tudor Jones recently expressed a lack of bullish sentiment towards the equities markets, citing the Israel-Hamas conflict as a potential trigger for a risk-off sentiment. In such a scenario, Jones believes that both gold and Bitcoin would benefit.
Turning to the charts, Bitcoin has recently fallen below the 20-day exponential moving average but has managed to hold above the 50-day simple moving average. The lack of demand at higher levels suggests that bears may attempt to push the price below the 50-day SMA. If successful, Bitcoin could retest strong support at $26,000. On the other hand, a rally above the 20-day EMA would indicate strength and could lead to a climb towards the overhead resistance at $28,143.
Ether has dipped to a critical support level at $1,531, but the bulls have successfully defended this level so far. A positive sign is the potential positive divergence seen in the RSI, indicating weakening bearish momentum. However, if the price turns down sharply from the 20-day EMA, it would suggest continued bearish control, potentially leading to a decline below $1,531.
BNB fell to strong support at $203, but the presence of long tails on the candlesticks indicates that bulls are protecting this level. To gain control, bulls will need to push the price above the moving averages and the downtrend line. If successful, BNB could start an upward move to $235 and later $250. However, if the price turns down from the moving averages, it would suggest that bears are selling into minor rallies. A break below $203 would complete a descending triangle pattern, potentially leading to a downward move to $183.
XRP fell below the uptrend line, indicating reduced bullish pressure. The price is likely to continue oscillating between $0.41 and $0.56 for the foreseeable future. Support exists at $0.46, but a break below this level could lead to a drop to the important level of $0.41. On the upside, a break above the moving averages would indicate strength and could result in a push towards the overhead resistance at $0.56.
Solana slipped below the 20-day EMA, suggesting continued bearish pressure. Both moving averages have flattened out, indicating a balance between supply and demand. Bears will attempt to strengthen their position by pushing the price below the 50-day SMA. If successful, Solana could slump to $17.33. However, if the price turns up and rises above $22.50, it would tilt the short-term advantage in favor of buyers, potentially leading to a rise to the neckline of the inverse head and shoulders pattern.
Cardano has formed long tails on successive candlesticks but has been unable to start a recovery, indicating a lack of demand at higher levels. The ADA/USDT pair is near support at $0.24, and the RSI shows signs of positive divergence. This suggests reducing selling pressure and the possibility of a relief rally. The first resistance on the upside is likely to be the moving averages, followed by $0.27 and $0.28. However, a break below $0.24 would indicate continued bearish control, potentially leading to a fall to $0.22 and eventually $0.20.
Dogecoin has been trading below support at $0.06, indicating that lower levels have been accepted by the markets. Bears will try to sink the price to the vital support level at $0.055, which is likely to witness strong buying by bulls. If the price rebounds off this level, Dogecoin could consolidate between $0.055 and $0.06. However, the downsloping moving averages and the near oversold RSI indicate that bears currently have the upper hand. To make a comeback, bulls will need to quickly push the price above the moving averages, potentially leading to a recovery to $0.07.
Toncoin has been in a corrective phase, with profit booking pushing the price below the 50-day SMA. Bulls are attempting to reclaim this level and push the price back above the moving averages. If successful, it would indicate that the break below the 50-day SMA was a bear trap, potentially leading to a rise to $2.31. However, a turn down from the moving averages would suggest a negative sentiment and increase the risk of a fall to $1.60.
Polkadot has continued to decline, reaching near the target objective at $3.50. This level is likely to act as solid support. The key level to watch is the 20-day EMA. If the price turns down from this level, it would signal selling on relief rallies and enhance the prospects of a drop below $3.50. However, if bulls drive and sustain the price above the 20-day EMA, it would indicate rejection of the lower levels and trap aggressive bears, potentially leading to a short squeeze towards the downtrend line.
Polygon is weakening towards critical support at $0.49, indicating that bulls are not taking risks at higher levels. In a range-bound market, traders typically buy near support and sell near resistance. Bulls are expected to buy the support level aggressively, leading to range-bound price action. To the upside, a break above the moving averages would indicate strength, while a break below $0.49 would indicate continued bearish control.