Analyzing Cryptocurrency Market: Bitcoin Dominates and Top Cryptos Show Mixed Signals
Summary:
The article evaluates the performance of top cryptocurrencies, with Bitcoin trading above $33,600 for two days, indicating bullish sentiment. Bitcoin's market dominance has risen to a 30-month high at 54%. Veteran trader Peter Brandt suggests Bitcoin's bottom is in, but all-time highs might be deferred until Q3 2024. Other cryptocurrencies including Ether, BNB, XRP, Solana, Cardano, Dogecoin, Toncoin, Chainlink, and Polygon are also analyzed, highlighting key resistance and support levels.
Over the last two days, Bitcoin (BTC) has consistently traded above $33,600, which suggests that profit-takers aren't in a hurry to leave. With little ground conceded after a significant rally, this could spur fear of missing out, spawning another buying spree. This, in turn, could further overheat the market. However, keep in mind that such rallies may not last. It's common for a downturn and reevaluation of the breakout levels to follow, meaning a fall to $32,000 isn't out of the question. Bitcoin's recent rally ascended market dominance to 54%, a peak not seen for two and a half years. This increased dominance denotes Bitcoin as the front-runner, a positive indicator. Traders are viewing the cryptocurrency sector positively, with selected altcoins expected to join the rally soon.
Seasoned trader, Peter Brandt voiced on X (formerly Twitter), October 26, that Bitcoin had hit bottom but warned that fresh all-time highs may be postponed until the third quarter of 2024. He predicts Bitcoin becoming stuck in a “chop fest”.
Are we going to see a correction in the coming days or will Bitcoin continue its upward trajectory? And will altcoins join the upward trend? To determine this, let's evaluate the charts of the top 10 cryptocurrencies.
Bitcoin is currently facing resistance at $35,000, though bulls have hardly conceded ground. This suggests that buyers might attempt another upward move soon. However, the risk of further increase is that the relative strength index (RSI) remains in the overbought area. This could indicate a minor correction or consolidation in the near future. If the price dips below $33,679, the BTC/USDT pair could revisit $32,400 and later $31,000.
Meanwhile, Ether's (ETH) long wick on the Oct. 26 candlestick hints that the bears are forcibly defending the minor overhead resistance at $1,855. If the price rebounds from $1,746, bulls will push to elevate the ETH/USDT pair past $1,855 and possibly set sights on the psychologically important level of $2,000.
If BNB price bounces off with strength from the level of $223, it could again aim to climb over the overhead resistance at $235 and ascend to $250. XRP has been in a neck-and-neck fight between bulls and bears near the overhead resistance of $0.56.
For days, Solana (SOL) has been trading close to the pattern target of $32.81, indicating that bulls anticipate another step up. Cardano (ADA) has been trading above $0.28 for several days but hasn't managed to ignite a robust relief rally.
Dogecoin (DOGE) has shown solid recovery in recent days, a sign of bullish aggression. The TON/USDT pair may slide to the crucial support at $1.89 if bears drag the price back below the moving averages on Oct. 27.
Chainlink (LINK) has been seeing selling around the $11.50 mark over the past few days. The significant support to watch on the downside for LINK/USDT pair is $9.50, and later the 20-day EMA ($8.97).
Finally, despite breaking past the $0.60 resistance on Oct. 22, Polygon (MATIC) bulls are having trouble keeping the momentum going. This suggests reluctance to continue buying at elevated levels.
Published At
10/27/2023 7:55:19 PM
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