Bitcoin (BTC) has surpassed the $30,000 mark on October 20, indicating a bullish trend. This surge may be attributed to Grayscale Investments filing a new application with the United States Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). Additionally, the SEC’s decision to dismiss all claims against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen is expected to slow down its attack on cryptocurrency entities.
As market sentiment improves, Bitcoin’s long-term holders are increasing their stockpiles. Glassnode data reveals that 76.2% of available Bitcoin is locked up in long-term storage, which could cause a supply crunch in the market, resulting in a bullish price trend for Bitcoin.
But can Bitcoin sustain its momentum and continue to rise? Will the altcoins follow suit? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
Bitcoin’s price analysis shows that it broke and closed above the $28,143 resistance on October 16. The successful retest on October 17 and 18 indicates that buyers have flipped the level into support. The 20-day exponential moving average (EMA) has turned up, and the relative strength index (RSI) is in the overbought zone, indicating that the bulls are in control. If the price remains above $30,000, it could challenge the overhead resistance zone between $31,000 and $31,805.
Ether (ETH) bounced off the strong support near $1,531, indicating that buyers are defending this level. The 50-day simple moving average (SMA) may act as a hurdle, but if crossed, the ETH/USDT pair could gain momentum and attempt a rally to $1,746. Despite downsloping moving averages favoring bears, the positive divergence on the RSI suggests that negative momentum is decreasing.
Binance Coin (BNB) turned down from the downtrend line on October 16, but the bulls held the price above the 20-day EMA. This change in sentiment from selling on rallies to buying on dips indicates a positive outlook. If buyers maintain the price above the downtrend line, the BNB/USDT pair could accelerate to $235 and potentially reach $250. However, breaking below the 20-day EMA could lead to a decline to $203.
XRP turned down from the moving averages on October 16, but the lack of selling at lower levels suggests bullishness. The XRP/USDT pair may oscillate between $0.46 and $0.56 for some time. Staying above the moving averages could result in a rally to the overhead resistance at $0.56. However, falling below the moving averages could lead to a drop to $0.46, setting the stage for the next trending move.
Solana’s SOL broke above the neckline of an inverse head-and-shoulders pattern on October 19, completing a bullish setup. If the price stays above the immediate resistance at $27.12, the SOL/USDT pair could rise toward the pattern target of $32.81. A retest of the neckline may indicate a new up-move, while a break below $23 could favor bears.
Cardano’s ADA slipped to strong support at $0.24 on October 19, but the positive divergence on the RSI suggests reduced bearish momentum. Overcoming resistance at the moving averages could lead the ADA/USDT pair to rise to $0.27 and $0.28. However, falling back below $0.24 could indicate a downtrend, with support at $0.22 and $0.20.
Dogecoin’s long tail on October 19 indicates aggressive buying between $0.055 and $0.06. Overcoming the 50-day SMA could pave the way for a rise to overhead resistance at $0.07 and potentially $0.08. However, turning down from the moving averages suggests continued bearish activity. A drop below $0.055 could signal the start of the next leg of the downtrend.
Toncoin broke below the 61.8% Fibonacci retracement level but found support at $1.98. If buyers push the price above $2.20, the TON/USDT pair may complete a small inverted head-and-shoulders pattern, targeting $2.47. However, falling below $1.89 could invalidate this positive view.
Polkadot has been in a strong downtrend, but the long tail on October 19 shows buying at lower levels. The relief rally may reach the breakdown level at $3.91, where resistance is expected. A turn down would indicate continued negativity. Breaking above $3.91 could signal a stronger recovery, with the potential to reach the downtrend line and potentially $4.33.
Polygon has been trading below the moving averages, but support at $0.49 suggests a reduction in selling pressure. If buyers sustain the price above the moving averages, the MATIC/USDT pair may rally to overhead resistance. A drop below the moving averages would suggest continued bearish activity.
In conclusion, Bitcoin’s rise above $30,000 and positive news surrounding Grayscale Investments and Ripple are boosting market sentiment. Bitcoin’s long-term holders are stockpiling, potentially leading to a supply crunch and favorable price trends for Bitcoin. Altcoins like Ether, Binance Coin, XRP, Solana, Cardano, Dogecoin, Toncoin, Polkadot, and Polygon are all showing signs of bullish momentum, with resistance levels and support areas to watch.
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