Prevailing movement in an asset class attracts traders, while lackluster price action pushes investors to the sidelines. Bitcoin (BTC) has largely remained stuck in a range over the past few months, which may be one of the reasons for the decline in spot volumes. Bloomberg reported on October 11 that Coinbase’s spot trading volume fell by 52% in the third quarter of 2023 compared to the third quarter of 2022.
While the short term remains uncertain, traders need to be careful because longer consolidations are generally followed by explosive price action. The only problem is that it is difficult to predict the direction of the breakout with certainty. Given that the bulls have not allowed Bitcoin to fall below $25,000 in the past few months, this increases the possibility of a bullish breakout.
Investing legend Paul Tudor Jones said in a recent interview on CNBC that he is not optimistic about stock markets because he believes an escalation in the conflict between Israel and Hamas could lead to risk aversion. If that happens, it would be bullish for gold and Bitcoin, Jones added.
Bears Plunge Bitcoin Below Immediate Support, Could This Bring More? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin broke through the 20-day EMA ($27,148) on October 11, but the bears were unable to pull the price below the 50-day SMA ($26,634).
The bulls successfully defended the 50-day SMA on October 11 and 12, but are struggling to initiate a bounce. This indicates a lack of demand at higher levels.
The bears will then try to bring the price below the 50-day simple moving average and break out to the top. If this level surrenders, BTC/USDT could retest the strong support at $26,000. This level is likely to see strong buying by the bulls.
A break above the 20-day EMA will be the first indication of strength. The pair could then rise to the strong overall resistance at $28,143. This is an important level to pay attention to because a close above it could signal the beginning of a short-term upward movement.
Ethereum price analysis
Ethereum (ETH) fell to the crucial support level at $1,531 on October 12, but the small positive is that the bulls managed to hold this level.
The Relative Strength Index is showing signs of positive divergence, indicating that the downward momentum may be weakening. The bulls will try to push the price to the moving averages where the bears will likely once again mount a strong defense.
If the price falls sharply from the 20-day EMA ($1,606), it will indicate that the bears remain ahead. ETH/USDT could then break below $1,531 and begin its decline at $1,368.
If the bulls want to prevent a decline, they will have to push the price above the moving averages. The pair may then rise to $1,746 as the bulls may face strong selling by the bears again.
BNB price analysis
BNB (BNB) price fell to the strong support level at $203, but the long tail on the candlestick shows that the bulls are protecting the level aggressively.
The bulls will have to quickly push the price above the moving averages and the downtrend line to indicate that the bears may be losing their grip. The BNB/USDT pair could then start an upward move to $235 and later to $250.
Conversely, if the price falls from the moving averages, it will indicate that every slight rise is being sold. A break below the $203 support will complete a descending triangle pattern, which could start a downward move to $183.
XRP price analysis
XRP (XRP) fell below the uptrend line on October 11, indicating that bullish pressure is decreasing. The decline indicates that the price will continue to fluctuate between $0.41 and $0.56 for a longer period.
There is support at $0.46, but if it is broken, XRP/USDT could fall to the important level at $0.41. The bulls are expected to aggressively buy this dip, which could keep the range-bound move intact.
On the upside, a break and close above the moving averages would be the first sign of strength. Buyers will then make another attempt to push the price to the general resistance at $0.56. A break and close above this level will signal the start of a new potential uptrend.
Solana price analysis
Solana (SOL) fell below the 20-day EMA ($21.72) on October 12, suggesting that the bears are maintaining their pressure.
Both moving averages have stabilized, and the RSI is near the midpoint, indicating a balance between supply and demand. The bears will try to consolidate their positions by pulling the price below the 50-day simple moving average ($20.44). If they do, SOL/USDT could fall to $17.33.
On the other hand, if the price rises and rises above $22.50, this will tip the short-term advantage in favor of buyers. The pair may then rise to the neckline of the inverse head and shoulders pattern.
Cardano price analysis
Cardano (ADA) has formed long tails on successive candles since October 9, but the bulls have failed to initiate a recovery. This indicates a lack of demand at higher levels.
ADA/USDT is near the $0.24 support level and the RSI is showing signs of positive divergence. This indicates that selling pressure is decreasing and there is potential for a comfortable rally. The first stop on the upside will likely be the moving averages. If this resistance is crossed, the pair could reach $0.27 and then $0.28.
Contrary to this assumption, if the price continues to decline and drops below $0.24, it will indicate that the bears are not in the mood for a pullback. This could pave the way for a drop to $0.22 and eventually to $0.20.
Dogecoin price analysis
Dogecoin (DOGE) has been trading below the $0.06 support level since October 9, indicating that the markets have accepted lower levels.
The bears will try to bring the price down to the vital support level at $0.055. This level is likely to see strong buying by the bulls. If the price bounces off this level, DOGE/USDT may consolidate between $0.055 and $0.06 for some time.
Bearish moving averages and the RSI near the oversold zone indicate that the bearish move has the upper hand. If the bulls want to come back, they will have to quickly push the price above the moving averages. This could start to recover to $0.07.
Related: Why is Bitcoin price stuck?
Toncoin price analysis
Toncoin (TON) has been in a corrective phase over the past few days. Profit booking by traders led the price to fall below the 50-day simple moving average ($1.98) on October 12.
The bulls are trying to reclaim the level and push the price back above the moving averages over the next few days. If they can do this, it will indicate that the break below the 50 day simple moving average may have been a bearish trap. This could open the door to a potential rise to $2.31.
Alternatively, if the TON/USDT pair falls from the moving averages, it will indicate that sentiment has turned negative and every comfortable rally is being sold off. This will increase the risk of a drop to $1.60.
Polkadot price analysis
Polkadot (DOT) has continued its decline in the past few days and reached near the $3.50 target on October 12. This level is likely to act as strong support.
On the way up, the 20-day EMA ($3.95) is the key level to watch. If the price falls from the 20-day EMA, it will indicate that traders are selling at relief highs. This could boost the chances of a drop below $3.50.
Conversely, if the bulls push the price and maintain it above the 20-day EMA, it will indicate that the markets have rejected lower levels. This may trap aggressive bears, resulting in a short squeeze towards the downtrend line.
Polygon price analysis
Polygon (MATIC) continues to weaken towards the crucial support at $0.49, suggesting that the bulls do not risk buying at higher levels.
In a range, traders generally buy near support and sell near resistance. In this case, the bulls will likely buy dips to $0.49 aggressively. If the price rises from this level strongly, MATIC/USDT may reach the moving averages.
If the price drops sharply from the moving averages, it will increase the probability of a breakout below $0.49. If that happens, the pair could fall to $0.45.
Conversely, a rise above the moving averages will indicate that the range-bound move may extend for a few more days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.