Top 5 cryptocurrencies to watch this week: Bitcoin, Solana, Avalance, Algorand, Axie Infinity
As bulls strive to turn the psychological threshold of $60,000 into support, Bitcoin (BTC) continues to suffer significant selling. Some analysts anticipate Bitcoin may experience a fall as traders take profits after the successful launch of Bitcoin exchange-traded funds last week.
In the past, the Chicago Mercantile Exchange’s debut of the Bitcoin Futures product on Dec. 18, 2017, signified the end of a strong bull market and the start of a multi-year bear market. A smaller-scale crash occurred as well.
Several analysts, on the other hand, are unconcerned about the retreat. “There are zero instances of Bitcoin breaching significant previous all-time highs and failing to go higher,” according to crypto market analytics firm Decentrader. They believe the Bitcoin bull run will continue, with a probable target of $72,000, followed by $88,000.
Not that every indicator is currently pointing to a positive outcome. According to data from Bybt, Bitcoin reserves on Binance have risen to 400,000 Bitcoin, indicating that traders may be ready to close their positions.
Could Bitcoin make a significant comeback, boosting cryptocurrency sentiment? Let’s look at the charts of the top five cryptocurrencies that could be hot in the coming days.
Bitcoin has been hammered in the $64,854 to $67,000 range. The price may fall to the 20-day exponential moving average ($58,315), which is a critical sign to observe. If the market bounces strongly off this level, it means that traders are buying on dips and sentiment is still bullish.
The bulls will then seek to push the price over the overhead zone one more time. If they succeed, the BTC/USDT pair could resume its upward path. The pair may then rally to $84,533.12, its target price.
The positive relative strength index (RSI) and upsloping moving averages signal that buyers have the upper hand.
In contrast to this notion, if the price falls below the 20-day EMA, it will indicate that the break above $64,854 was a bull trap. The pair’s drop could then continue to the 50-day simple moving average ($50,927).
Within a declining channel, the pair is correcting. The pair’s immediate support is at $58,739.17, and if it cracks, the pair might drop to the channel’s support line. This is a crucial milestone for the bulls to hold because a break below it might exacerbate selling.
Bears now have the upper hand, as the 20-EMA has turned down and the RSI has plunged into negative territory. If the price breaks above the channel and moving averages, this bearish view will be invalidated. A retest of the overhead zone would be more likely as a result of such a shift.
Bears are actively defending the overhead barrier at $216, as evidenced by the lengthy wick on Solana’s (SOL) Oct. 22 candlestick. On Oct. 23, the altcoin produced an inside-day candlestick pattern, indicating that bulls and bears are undecided.
Today, the uncertainty turned to the downside, and the price might drop to the $177.79 breakthrough level. If the price bounces off this level, it indicates that traders are buying on dips and sentiment remains strong.
The bulls will then try to push the price above $216 once more. The SOL/USDT pair might soar to $239.83 if they succeed. The 20-day EMA ($168) is moderately rising, and the RSI is in positive zone, indicating a buyer’s advantage.
If the stock continues to fall and breaks below the 20-day EMA, this bullish outlook will be shattered. This might bring the price down to the triangle’s trendline.
On the 4-hour chart, the bears have dragged the price below the 20-EMA. If sellers are able to keep the market below the 20-EMA, the bullish momentum will be diminished. After that, the pair may drop to $177.79, where buying might materialize.
A break and closure above the downtrend line will be the first sign of strength. This would indicate that traders are buying on dips. This might boost the price up to $205.78, and if this barrier is overcome, the pair could rise to a new high.
On Oct. 21, Avalanche (AVAX) broke and closed above the declining channel, suggesting that the correction is done. The bulls will now attempt to resume their upward movement.
The extended wick on the candlesticks of October 22 and 23 indicates that demand dries up at higher levels. The AVAX/USDT pair may fall below its moving averages.
A significant comeback from this level of support will indicate that traders are still buying on dips. The bulls will next try to restart the upward trend by pushing the price over $69.18. The pair may rise to $73.41 and then retest the all-time high of $79.80 if they succeed.
In contrast to this notion, if the price breaks below the moving averages, the pair may drop to $51.04 as a solid support. If this level also gives way, the channel’s support line might be the next stop.
The bulls invalidated the bearish setup by pushing the price above the descending triangle’s downtrend line. The rally was short-lived, however, as bears dragged the price down below the 20-EMA. This means that you should sell at a greater price.
The pair may now go below the 50-SMA. The bears will attempt to drag the market back into the triangle if this support is violated. If this occurs, it will indicate that the breakout above the triangle was a ruse.
On the other hand, if the price increases from its present level or bounces off the downtrend line, it means bulls are piling in on dips. After that, the purchasers will aim to push the price over $69.18. Bulls will have the upper hand if they can break and close above this barrier. After then, the pair may begin its ascent to the all-time high.
For the previous two days, Algorand (ALGO) has been trading inside a symmetrical triangle. Today, the price has moved down from the triangle’s resistance line, indicating that bears are refusing to give bulls the upper hand.
The ALGO/USDT pair might drop below the triangle’s support line if the price falls below the moving averages. The bulls must defend this level because if it is breached, the bears will attempt to bring the price down to $1.51 and then $1.20.
If the price rises from the present level or the support line and breaks above the triangle, it indicates that the bulls have taken control. After that, the pair might rise to $2.22 before retesting the all-time high of $2.55.
Inside the triangle, the price is being compressed, indicating that the pair is preparing for a big directional move. The crisscrossing moving averages and the RSI at the middle indicate that neither the bulls nor the bears have a clear advantage.
A break above the triangle indicates that bulls have absorbed bearish selling and that the pair is poised to resume its upward trend. A break below the triangle, on the other hand, indicates that supply outweighs demand, perhaps triggering a deeper downturn.
Axie Infinity (AXS) has produced a symmetrical triangular pattern, indicating that bulls and bears are undecided. Although the path of the breakout is difficult to forecast, the triangle normally serves as a continuation pattern.
If the price bounces off the support line, bulls will try to push the AXS/USDT pair above the triangle once more. If they succeed, it will mark the start of a new upsurge. After that, the pair may revisit the all-time high of $155.27.
If buyers can break this overhead barrier, the bullish momentum might pick up. The pair may next surge toward the $186.05. pattern goal.
A break and close below the triangle, on the other hand, will signal a deeper correction. The pair may decline to $103.22 and subsequently to $94.67, the breakthrough level.
On the 4-hour chart, the moving averages have flattened down, and the RSI has been fluctuating between 40 and 62. This indicates that traders are buying on falls to $115 and selling near $140, indicating a condition of balance.
If the price breaks and closes below $115, it may indicate that the risk has shifted to the downside. This might push the price down below $90, which is the pattern’s aim. A break over $140, on the other hand, will signify that bulls are back in the game. The pair may rally to $155.27 and then to $165, which is the pattern goal.
The author’s thoughts and opinions are purely his or her own and do not necessarily represent our own. Every investing and trading decision entails risk, so do your homework before making a decision.