Bitcoin Defies Expectations with Surge Above $31,000 Amid Anticipation of ETF Approval
Summary:
On October 23, Bitcoin's (BTC) price soared past the $31,000 to $32,400 resistance zone, defying market expectations. This uptrend indicates anticipation for a Bitcoin spot exchange-traded fund approval, a move predicted to bring further price surges. Interestingly, other cryptocurrencies such as Ether (ETH), Binance Coin (BNB), XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Toncoin (TON), Chainlink (LINK), and Polygon (MATIC) also witnessed significant price movements. Experts suggest that these current rallies could either represent a sustained up-move or be an indication for profit booking, urging investors to exercise caution and thorough research before making any trading decisions.
Bitcoin (BTC) soared effortlessly past the resistance barrier of $31,000 to $32,400 on October 23, leaving many market watchers stunned. Typically, the price tends to stall or consolidate when facing sturdy resistance levels at the top, but this time was an exception. Market players are optimistic because they expect a Bitcoin spot exchange-traded fund to obtain approval sooner rather than later. Bloomberg ETF analyst, Eric Balchunas, stated in an X (previously known as Twitter) post on October 23 that BlackRock’s pending Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) signalled progress towards the ETF’s market entry. He noted it was challenging not to see this as an indication that an approval was probable/impending. However, a DTCC spokesperson later clarified that the ETF listing has existed since August and does not imply regulatory approval.
Cryptocurrency market overview (Source: Coin360) The rush to purchase Bitcoin before the approval of a spot Bitcoin ETF is because analysts forecast that prices will spike following the approval. Galaxy Digital research associate, Charles Yu, suggested in a blog post that Bitcoin’s price might surge by 74.1% in the first year after an ETF is launched in the United States.
Is the current rally in Bitcoin signalling a sustained upward trend, or is it time to secure profits? How will alternative cryptocurrencies react to the strengthening Bitcoin price? Let's examine the charts of the top 10 cryptocurrencies to find out.
On October 23, Bitcoin's price soared above the formidable overhead resistance of $31,000 to $32,400. This signals the resurgence of the uptrend. The price surge of the past few days has pushed the relative strength index (RSI) deep into overbought territories. Often, during the initial phases of a bullish trend, the RSI can remain in the overbought zone for a prolonged period. Critical support levels to watch on the downside are $32,400 and then $31,000. Buyers are expected to fiercely defend this zone. If the price rises from this support zone, bulls will attempt to push the BTC/USDT pair towards $40,000. On the other hand, a decline below $31,000 will suggest that the recent breakout might have been a false bull signal.
Ether's (ETH) range resolved in an upward direction with a breakthrough above $1,746 on October 23, indicating a potential shift in trend. However, high selling pressure at upper price levels is visible from the long wick on the October 24 candlestick. The crucial level to watch on the downside is $1,746. If this level holds during the retest, the ETH/USDT pair may rise above $1,855, potentially triggering a rally to $1,900 and $2,000. In contrast, bears will attempt to drag the price below $1,746 and trap over-ambitious bulls, possibly causing the pair to slump to the 20-day EMA ($1,648), indicating that the pair's consolidation may continue for a while longer.
On October 23, Binance Coin (BNB) cleared the immediate resistance of $223. Still, bulls failed to maintain momentum and overcome the barrier at $235. Sellers are trying to pull the price back below $223. If they succeed, this could suggest that the BNB/USDT pair may range between $203 and $235 for a longer duration. The 20-day EMA ($215) has begun to rise, and the RSI is in positive territory, implying that bulls have gained a foothold. If the price bounces from $223, it may indicate that buyers are accumulating on the dips, which may enhance the prospects of a rally above $235. Further, the pair could rally to $250 and eventually to $265.
XRP (XRP) has been fluctuating within a wide range between $0.41 and $0.56 for several months now. On October 24, bulls pushed the price over the range resistance, yet the long wick on the candlestick shows bears straining to safeguard this level. In a ranging scenario, traders generally sell at the range's overhead resistance, as observed in the XRP/USDT pair. If the price drops to the moving averages, it could indicate that the pair may continue within the $0.56 to $0.46 range for a few more days. However, if the price rebounds from this level and eclipses $0.56, this may signal a new upward trend. The pair is likely to first climb to $0.66, then attempt a rally to $0.71.
Solana (SOL) hit the pattern target of $32.81 on October 23, likely causing traders to book profits. This initiated a correction on October 24, which was cut short. This indicates a bullish sentiment with every small dip being bought. On October 25, buyers pushed the price above $32.81, signaling that the next phase of the uptrend has begun. The SOL/USDT pair may next soar towards $38.79. The RSI is in the overbought zone, warning that the pair may witness a minor correction or consolidation soon. If the price falls below $29.50, the pair could stumble to $27.12, a level where bulls are likely to buy aggressively.
Cardano (ADA) leapt over the $0.28 resistance on October 24, but the long wick on the candlestick shows that sellers are offloading at higher prices. The ADA/USDT pair is likely to encounter stiff resistance around the $0.28 mark. If the price falls and stays below this level, it might mean that the market has rejected the breakout, potentially keeping the pair within the $0.24 to $0.28 range for some time. On the flip side, if the price bounces off $0.28 and surpasses $0.30, it could suggest that bulls have converted $0.28 into a support level. This might trigger a new upward movement toward $0.32. If this level is overtaken, the pair may then strive towards $0.38.
Dogecoin's (DOGE) rally hit a brick wall at $0.07 on October 24, as seen from the long wick on the day's candlestick. The DOGE/USDT pair might soon enter a period of correction or consolidation. If the pair manages to stay buoyant during this phase, it may suggest that the bulls aren't in a rush to sell, thereby enhancing the chances of clearing the $0.07 barrier. The pair might then surge to $0.08. The bullish crossover on the moving averages and the RSI in overbought territory signals bulls are in control. This scenario will shift in the bears' favor if they pull the price under $0.06.
On October 24, Toncoin (TON) declined from $2.26, showing that bears are guarding the $2.31 resistance. The first support at the downside falls at the moving averages. A price rebound at this level signifies that the market sentiment is positive, and traders are buying the dips. This increases the likelihood of breaking the $2.31 barrier. If successful, the TON/USDT pair could revisit the tough resistance at $2.59. If, however, the price falls and cracks below the moving averages, the pair may hover between $1.89 and $2.31 for some time. Bears will regain control if they manage to sink the price below $1.89.
After many months of consolidation, Chainlink (LINK) broke free on October 22, with the price surpassing the overhead resistance at $9.50. On October 24, sellers sought to pull the price back below the breakout level of $9.50, but the long tail on the candlestick indicates aggressive buying at lower levels. Buying resumed on October 25 and the LINK/USDT pair has continued its upward journey since. The pattern target following the $9.50 breakout is $13.50, but if this level is surpassed, the pair might reach $15. If bears wish to curb the surge, they will need to force the price below $9.50. The RSI's overbought levels warn traders that a minor correction or consolidation might occur in the near future.
Polygon (MATIC) rocketed above the $0.60 resistance on October 22, indicating that lower-level accumulation is occurring. The 20-day EMA ($0.56) has started to rise, and the RSI is in the overbought zone, signalling a prospective shift in trend. If the price remains above $0.60, it could signal the start of an upward trend. The MATIC/USDT pair has the potential to rise to $0.70 and then to $0.80. An important level to monitor on the downside is $0.60. A break below this level might suggest that the rally over $0.60 was a bull trap. This might catch the overzealous bulls off guard, potentially causing a drop to the moving averages.
This article does not constitute financial or investment advice. All investments and trading actions carry risk, and readers should conduct independent research when making investment decisions.
Published At
10/25/2023 5:30:00 PM
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