Bitcoin looks strong and indicators point to a possible drop above $14,000, while altcoins may perform less well in the short term.
The Bitcoin ( BTC ) rose about 90% in the year to date and rose almost 191% over the March lows. The increase has been gradual, without much fanfare, which suggests that the cryptochrites are the ones they bought in 2020.
The monthly closing of October at $13,798.99 is the highest of all time, surpassing the December 2017 closing at $13,789.68. Bitcoin’s strong performance can now attract players looking to benefit from the strength.
Weekly market performance data cryptomoedas. Source: Coin360
If this happens, Crypto Genius can gain momentum and surprise investors in a positive way. This could result in traders selling their altcoins to invest in Bitcoins. Therefore, the last season seems to be over in the short term.
Bitcoin beats record valuation and Ibovespa has the highest weekly turnover, dropping about 7.40%.
Three of the five major cryptomorphs analyzed today may offer a trading opportunity on the upside, while the other two may continue to fall further. Let’s look at the critical levels that may indicate the beginning of a trend movement.
BTC / USD
Bitcoin rose above the $13,973.50 resistance and reached an intraday high of $14,101.91 on October 31st. Although the bulls failed to sustain the price above the resistance, they did not give up much ground to the downside.
This suggests that traders are not closing their positions in a hurry because they expect another attempt by the bulls to push the price above resistance.
Both the 10-day exponential moving average ($13,309) and the 50-day simple moving average ($11,505) are rising and the relative strength index is in overbought territory. This suggests that the bulls are in charge.
If the BTC/USD pair closes above $14,000, it could start the next leg of the bullish trend which could reach $16,500.
However, if the bulls again fail to sustain the price above $14,000, short term traders may get rid of their positions and bears may begin short positions. A breach below the 10-day MME will be the first sign that the moment has weakened.
Bears are likely to gain a bigger hand if the pair falls and stays below the critical $12,460 support.
The pair is currently trying to stay above 10-EMA. If this happens and the bulls manage to push the price above the $13,973.50-$14,101.92 resistance zone, a new bullish trend is likely.
However, the bearish divergence on the RSI suggests that the bullish momentum is weakening. If sellers can sink the pair below 10-EMA, a drop to 50-SMA and then to $13,000 will be on the cards. Strong support in the $12,750-$13,000 zone could attract buyers.
BNB / USD
Binance Coin (BNB) broke below the $28.50 support on October 30, but managed to recover from intraday lows and close above $28.50. However, the doji candle pattern on October 31 suggested indecision between the bulls and bears.
Daily chart BNB / USD. Source: TradingView
The bears are currently trying to solve the indecision on the negative side and gain the advantage. If the BNB/USD pair breaks and closes below $27.50, it will increase the possibility of falling to $24.86.
The 10-day MME drop ($29.47) and the RSI in the negative zone suggest that the path of least resistance is to the downside.
Contrary to this assumption, if the price reverses the direction and rises above $28.50, this will suggest a few more days of consolidation.
BNB / USD 4 hour chart. Source: TradingView
The 4-hour chart shows that the $27.5111 recovery is facing strong resistance in 10-EMA. A break below $28 could challenge the $27.50 support, which if broken, the next break could be $26.50.
Both moving averages are dropping and the RSI is close to the oversize zone, suggesting an advantage for the bears.
This view will be invalidated if the pair changes and rises above $29. Such a move will suggest accumulation at lower levels and will increase the possibility of high to $30.50.
ADA / USD
Cardano ( ADA ) broke below the rising low wedge pattern on October 26 and fell to $0.0891 support. The bulls are currently trying to defend the support and push the price above the moving averages.
However, the 10-day MME drop ($0.988) and RSI below 43 suggest that bears are in control. Therefore, the jump is likely to face strong resistance in the moving averages.