Bitcoin (BTC) skyrocketed above the $1 trillion market capitalization today, pulling the total crypto market capitalization close to $2.3 trillion. This marks a complete 100% recovery from the June 22 lows when the total crypto market capitalization had plunged to about $1.15 trillion.
According to Chainalysis, the Central and Southern Asia and Oceania region has seen a massive increase of 706% in crypto transactions between July 2020 and June 2021. The total transaction value was $572.5 billion, accounting for 14% of the global transaction value.
Daily cryptocurrency market performance. Source: Coin360
The Bank of America Corporation (BoA) subsidiary, BofA Securities published a report on Oct. 4 that projected a bullish long-term picture for cryptocurrencies. The report estimated that by June 2021, about 221 million users had either traded cryptocurrencies or used a blockchain application, a massive increase from 66 million users in May 2020.
The BofA report said that the crypto sector was “too large to ignore” and it comprised “so much more” than just Bitcoin.
Could Bitcoin pick up momentum and challenge the all-time high? Will this boost interest in altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke and closed above $48,843.20 on Oct. 4, which was the first sign that the correction may be over. This may have attracted short-covering by the bears, resulting in a rally on Oct. 5 and today.
BTC/USDT daily chart. Source: TradingView
The bulls have thrust the price above $52,920, which invalidates the head and shoulders (H&S) pattern. The 20-day exponential moving average ($46,947) has turned up and the relative strength index (RSI) is close to the overbought zone, indicating that bulls are in command.
If bulls sustain the price above $52,920, the BTC/USDT pair could further pick up momentum and rally to $60,000. This level may act as a resistance but if crossed, the pair could challenge the all-time high at $64,854.
Contrary to this assumption, if the price fails to sustain above $52,920, it will suggest that demand dries up at higher levels. The pair may then correct to $48,843.20.
Ether (ETH) bounced off the 50-day simple moving average ($3,317) on Oct. 4 and the bulls extended the recovery on Oct. 5. However, the bears tried to stall the rally today and they pulled the price to the 50-day SMA.
ETH/USDT daily chart. Source: TradingView
The long tail on the day’s candlestick shows aggressive buying near the 50-day SMA. The rising 20-day EMA ($3,262.50) and the RSI in the positive zone indicate that bulls are in control.
If buyers propel the price above $3,676.28, the ETH/USDT pair could rally to $4,027.88. The bears will have to pull and sustain the price below the 20-day EMA to open the gates for a possible decline to $3,000 and then to the 100-day SMA ($2,871).
Binance Coin (BNB) broke and closed above the overhead resistance at $433 but the bulls have not been able to build on this strength. The bears pulled the price back below $433 today but the positive sign is that bulls aggressively bought the dip as seen from the long tail on the day’s candlestick.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA ($404) is sloping up and the RSI is in the positive territory, indicating that buyers have the upper hand. If bulls push and sustain the price above $444, the BNB/USDT pair could rally to $518.90.
This level may again act as a stiff resistance but if bulls can overcome the hurdle, the momentum could pick up. Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, the next stop could be the 100-day SMA ($377).
The bulls have not been able to clear the overhead hurdle at the 20-day EMA ($2.25) in the past few days, indicating selling at higher levels. The long tail on today’s candlestick suggests that bulls are accumulating Cardano (ADA) at lower levels.
ADA/USDT daily chart. Source: TradingView
The 20-day EMA is flattening out and the RSI is just below the midpoint, suggesting a balance between supply and demand. If bulls drive the price above the 20-day EMA, the ADA/USDT pair could rally to $2.47.
Alternatively, if the price once again turns down from the 20-day EMA, the bears will try to sink the pair to $1.94. A break and close below this support could clear the path for a further decline to $1.60.
XRP has been stuck between the 20-day EMA ($1.02) and the 50-day SMA ($1.10) for the past few days. This shows that bulls are buying near the 20-day EMA while bears are defending the 50-day SMA.
XRP/USDT daily chart. Source: TradingView
The 20-day EMA has started to turn up and the RSI has climbed into the positive territory, indicating that bulls have a slight edge. If buyers push and sustain the price above the 50-day SMA, the XRP/USDT pair could start its northward march toward $1.41.
On the other hand, if the price turns down from the current level and breaks below the 20-day EMA, the decline could deepen to the 100-day SMA ($0.91). A break and a close below this level could result in a drop to $0.70.
Solana (SOL) turned down from the 61.8% Fibonacci retracement level at $177.80 and dipped to the 20-day EMA ($152) today. The bulls are currently attempting to defend the 20-day EMA.
SOL/USDT daily chart. Source: TradingView
If the price rises from the current level, the bulls will try to push the SOL/USDT pair above $177.80. If they manage to do that, the pair could climb to $200 and then retest the all-time high at $216.
On the contrary, if bears pull the price below the 20-day EMA, the pair could drop to the 50-day SMA ($133) and then to the critical support at $116. If this level breaks down, the selling could intensify and the pair may plunge to the 100-day SMA ($84).
Dogecoin (DOGE) soared above the 20-day EMA ($0.22) on Oct. 4, indicating that bulls are attempting a comeback. The buyers pushed the price above the 50-day SMA ($0.25) on Oct. 5 but the bears successfully defended the downtrend line.
DOGE/USDT daily chart. Source: TradingView
Another attempt by the bulls to drive the price above the downtrend line is facing strong resistance today but the positive sign is that bulls are not giving up much ground. The 20-day EMA has turned up gradually and the RSI is in the positive zone, indicating that the path of least resistance is to the upside.
If bulls drive and sustain the price above the downtrend line, the DOGE/USDT pair could rally to $0.32 and then to $0.35. Alternatively, if the price turns down and breaks below the 20-day EMA, the pair could plummet to the $0.21 to $0.19 support zone.
Related: Bank of America identifies 20 high profile US companies with crypto exposure
Polkadot (DOT) rebounded off the 50-day SMA ($30.21) on Oct. 4 but the bulls could not sustain the higher levels. The bears pulled the price back below the 50-day SMA today but the long tail on the day’s candlestick shows aggressive buying near $28.60.
DOT/USDT daily chart. Source: TradingView
The bulls will now try to propel the price above the overhead resistance at $33.60. If that happens, the DOT/USDT pair could rally to $38.77. This level may again act as a resistance but if the bulls can overcome the hurdle, the pair may start its journey toward $49.78.
On the contrary, if the price turns down from the current level of $33.60, the bears will again try to pull the price below the neckline. Such a move will complete the H&S pattern, which has a target objective of $12.23.
Terra protocol’s LUNA token broke to a new all-time high on Oct. 4 but the long wick on the day’s candlestick showed profit-booking near the psychological level at $50. The token made an inside-day candlestick pattern on Oct. 5, indicating indecision among bulls and bears.
LUNA/USDT daily chart. Source: TradingView
This uncertainty resolved to the downside today and the LUNA/USDT pair plunged to $40.38. However, lower levels attracted aggressive buying as seen from the long tail on today’s candlestick.
The bulls will now make one more attempt to push the price above $50 and resume the uptrend. On the other hand, the bears will try to stall the recovery and pull the price below the 20-day EMA ($38.57). If that happens, the pair may decline to the critical support at $32.50.
The bulls are aggressively buying on dips to the 20-day EMA ($24.33) as seen from the long wick on the candlestick for the past two days. Today bears pulled Uniswap (UNI) below the 20-day EMA but bulls defended the 100-day SMA ($23.47).
UNI/USDT daily chart. Source: TradingView
The gradually rising 20-day EMA and the RSI in the positive territory indicate a minor advantage to buyers. If bulls push and close the price above the neckline, the inverse H&S pattern will complete. This positive setup has a target objective of $36.98.
Contrary to this assumption, if the price turns down from the current level or from the neckline and breaks below $22, it will suggest that demand dries up at higher levels. The UNI/USDT pair could then drop to $18.
Market data is provided by HitBTC exchange.
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