Bitcoin (BTC) had an impressive month in October, with a 28.5% increase in value. This marks the second-best monthly gain of the year, following the 40% rally in January. The strong performance in October has left investors wondering if Bitcoin can continue its recovery and maintain its bullish momentum.
According to a note from Bernstein on October 31, Bitcoin could rally to $150,000 by 2025. The firm believes that the United States Securities and Exchange Commission will approve a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024. It further predicts that ETFs may attract up to 10% of Bitcoin’s circulating supply.
While the long-term outlook for Bitcoin looks bullish, there may be increased volatility in the near term. On-chain monitoring resource Material Indicators suggests that the bullish momentum is weakening and may result in a retest of $33,000 before a potential attempt at $36,000.
The question now is whether Bitcoin will break above or below its current range and if altcoins will rally while Bitcoin consolidates. To answer this question, let’s analyze the charts of the top 10 cryptocurrencies.
Starting with Bitcoin, the bulls attempted to push the price above $35,280 on November 1 but faced resistance from the bears. This indicates profit-booking at higher levels. The relative strength index (RSI) is still in the overbought zone, suggesting that consolidation may continue for a few more days. On the upside, the key level to watch is $35,280, while on the downside, support is at $33,390.
Ether (ETH), the second-largest cryptocurrency, has been holding above the breakout level of $1,746. However, the bulls are struggling to start the next leg of the uptrend, indicating bearish pressure. The crucial level to watch on the downside is $1,746, while on the upside, a break above $1,865 could lead to a surge to $2,000.
Binance Coin (BNB) has faced difficulty staying above $230, suggesting a lack of buying interest at higher levels. The price has turned down and reached the breakout level of $223. If buyers defend the zone between $223 and the 20-day exponential moving average (EMA), the bulls may attempt to push the price toward the overhead resistance of $235. However, if the price breaks below the 20-day EMA, it could indicate bears taking control, leading to a potential drop to the 50-day simple moving average (SMA).
XRP broke and closed above the overhead resistance of $0.56 on October 30, indicating the start of a new uptrend. The 20-day EMA has turned up, and the RSI is in the overbought zone, suggesting that the bulls have a slight edge. If buyers can push the price to $0.67, it would further enhance the bullish sentiment. However, if the bears manage to pull the price back below $0.56 and the 20-day EMA, the XRP price may fall to the 50-day SMA.
Solana has been in a strong recovery, surpassing the overhead resistance at $38.79 on November 1. If buyers can maintain the price above $38.79, the next target could be $48. However, the overbought levels on the RSI suggest that the rally may be overheated in the near term, making it challenging for the bulls to continue the upward movement. A break and close below $38.79 may lead to short-term traders booking profits and a potential drop to $34.
Cardano turned down from the minor resistance at $0.30 on October 31, indicating profit-taking from short-term traders. The nearby support on the downside is the 20-day EMA, which buyers are expected to defend vigorously. If the price rebounds off the 20-day EMA, it would indicate a positive sentiment and potential retest of $0.30. On the other hand, a break below the 20-day EMA may result in further oscillation between $0.24 and $0.30.
Dogecoin has struggled to sustain its value above the $0.07 resistance, suggesting that higher levels are attracting sellers. The price dipped to the 20-day EMA on October 31 but failed to gain momentum from this level. If sellers can pull the price below the 20-day EMA, it would indicate a weakening grip by the bulls and a potential drop toward $0.06. Conversely, a strong rebound off the 20-day EMA would suggest that bulls are buying on dips, and a break above $0.07 could lead to an up-move to $0.08.
In other cryptocurrency news, initiatives like Toncoin (TON), Chainlink (LINK), and Polygon (MATIC) have seen varied price movements. TON has formed a range between $1.89 and $2.31, failing to break above resistance at $2.27. LINK has struggled to sustain its value above $11.50, and a close below $9.50 could lead to further bearishness. MATIC has faced resistance at $0.66 and is currently trading in a tight range between $0.60 and $0.66.
Overall, Bitcoin’s strong performance in October has investors optimistic about its future. However, volatility may increase in the near term. The charts of other top cryptocurrencies also provide insights into potential price movements and market trends. It remains essential for investors to monitor these charts and indicators to make informed trading decisions.