Bitcoin price could achieve a new 2020 high if bulls hold the price above the key multi-year resistance at $11.5K.
In the past three years the U.S. Securities and Exchange Commission has shot down several applications for a Bitcoin (BTC)
exchange-traded fund. This dashed hopes of many investors who believed
Bitcoin price would rally higher if an EFT was approved.
Although
investors no longer pin BTC’s future on the existence of an ETF,
regulators could eventually adjust their anti-crypto stance in the
future.
In an interview with Cointelegraph, SEC Commissioner Hester Peirce said that the regulator will have to become accommodative to innovation as several people from both the crypto space and traditional financial institutions seek their guidance.
Bloomberg’s latest crypto newsletter
predicts that a Bitcoin ETF could see the light of the day if
Democratic presidential nominee Joe Biden is elected as the next U.S.
President. The author believes that a change in guard may bring
regulatory clarity that could attract investments into digital assets.
Crypto market data daily view. Source: Coin360
However,
even if President Donald Trump is re-elected, Bloomberg expects Bitcoin
to extend its uptrend through his second term as the digital asset will
be buoyed by the rising debt-to-GDP, quantitative easing, and Bitcoin
hash rate.
Even if Bitcoin only rallies at half the speed of its 1,400% gain from 2016 to 2020, it would rally to $80,000 by 2024.
The
long-term forecasts are encouraging and so are the short-term charts.
Let’s analyze the top-5 cryptocurrencies that may outperform in the
short-term.
BTC/USD
The breakout of the symmetrical
triangle on Oct. 8 attracted buyers who pushed the price above the
overhead resistance at $11,178 on Oct. 10. However, the bears have not
yet given up completely as they sold the rally to $11,482.44 on Sep. 10.
BTC/USD daily chart. Source: TradingView
The
bulls used the dip to buy and did not allow the price to break below
$11,178. This suggests that the sentiment has changed from sell on
rallies to buy on dips.
The moving averages on the verge of a
bullish crossover and the relative strength index above 64 indicate that
the advantage is currently with the bulls.
If the buyers can push
the price above the overhead resistance at $11,500, the next stop for
the BTC/USD pair could be $12,000 and then $12,460.
This bullish
view will be invalidated if the pair turns down from the current levels
and breaks below the 20-day exponential moving average ($10,853). Such a
move will suggest that the current breakout was a bull trap.
BTC/USD 4-hour chart. Source: TradingView
The
trend on the 4-hour chart has turned bullish with both moving averages
sloping up and the RSI in the overbought territory. The buyers will
again attempt to push the price above $11,500 and if they succeed
momentum is likely to pick up.
However, if the price turns down
from the overhead resistance, it could consolidate in a tight range of
$11,468.98–$11,178 for some time. A break below $11,178 will be a sign
of short-term weakness.
XRP/USD
The bears defended the
$0.26 overhead resistance on Oct. 10, but they could not sustain the
selling pressure today. This shows that the bulls are buying on every
minor dip and are currently attempting to push XRP above $0.26.
XRP/USD daily chart. Source: TradingView
A
breakout and close (UTC time) above $0.26 will complete an inverse head
and shoulders setup that has a pattern target of $0.300288. The moving
averages on the verge of a bullish crossover and the RSI close to 60
suggest advantage to the bulls.
Contrary to this assumption, if
the XRP/USD pair turns down from the current levels and breaks below the
20-day EMA ($0.246), it will show that the bears are aggressively
shorting on rallies to $0.26.
XRP/USD 4-hour chart. Source: TradingView
The
bears are attempting to defend the $0.26 resistance but they have not
been able to sink the price below the 20-EMA. This suggests that the
bulls are accumulating on dips.
The upsloping moving averages and the RSI near 60 suggest that bulls have the upper hand in the short-term.
A
break below the 20-EMA will be the first sign of weakness and the
advantage will turn in favor of the bears if they can sink the price
below the $0.24 support.
Conversely, if the bulls can push the
price above $0.26, a new uptrend is likely. The pair could face
resistance at $0.266 and then at $0.28 but the trend will remain bullish
as long as the price remains above the neckline.
ADA/USD
The failure of the bears to sustain Cardano (ADA)
below $0.90, between Oct. 7 to 9, attracted aggressive buying by the
bulls who then pushed the price above the moving averages.
ADA/USD daily chart. Source: TradingView
The
moving averages on the verge of a bullish crossover and the RSI near 62
suggest that the buyers have the upper hand. If they can propel the
price above the neckline, it will complete a reversal setup that has a
pattern target of $0.1331.
This bullish view will be invalidated
if the ADA/USD pair turns down from the current levels and breaks below
the moving averages. Such a move will suggest that the breakout above
$0.104044 was a bull trap.
ADA/USD 4-hour chart. Source: TradingView
The
rebound off the immediate support at $0.1040440 suggests that the
sentiment has turned positive as the bulls are viewing dips as a buying
opportunity.
However, unless the bulls drive the price above the
neckline, the bears will again try to sink the pair back below
$0.1040440 and the 20-EMA. If they succeed, the pair could drop to the
50-simple moving average and below it to $0.90.
Conversely, if the
pair rebounds off the 20-EMA, it will indicate strength and increase
the possibility of a break above the neckline.
XMR/USD
Monero (XMR)
is in an uptrend with both moving averages sloping up and the RSI in
the overbought zone. The bulls will now try to extend the up-move to
$140 and above it to $150.
XMR/USD daily chart. Source: TradingView
In
a strong uptrend, the corrections usually last for one to three days
and the bulls view the dips to the 20-day EMA ($105.96) as a buying
opportunity because it gives a low-risk entry point with a good risk to
reward ratio.
However, if the XMR/USD pair turns down from the
current levels and drops back below $121.427, the bears will try to drag
the price to the 20-day EMA. A break below this support will be the
first sign of weakness.
XMR/USD 4-hour chart. Source: TradingView
The
ascending triangle pattern completed on a breakout and close (UTC time)
above $113.211. This bullish setup has a pattern target of $132.739.
The buyers are currently attempting to sustain the price above $121.427.
If
they succeed, it will suggest that $121.427 will now act as a strong
support. Even if the price dips back below this level, the bulls will
again try to buy the dip to the 20-EMA.
If the pair rebounds off this support, it will indicate strength and increase the possibility of a resumption of the uptrend.
ATOM/USD
Cosmos (ATOM)
broke out and closed (UTC time) above the neckline of the inverse head
and shoulders pattern on Oct. 10. This breakout has seen further buying
today and the bulls have pushed the price above the $5.877 resistance.
ATOM/USD daily chart. Source: TradingView
The
ATOM/USD pair could now start a rally that may reach $7.40 and then
$8.877. The 20-day EMA ($5.17) has started to turn up and the RSI has
risen into the positive territory, which suggests a possible change in
trend.
Contrary to this assumption, if the pair turns down from
the current levels, the bears will try to sink the price back below the
neckline and the 20-day EMA.
If that happens, it will indicate
that the current breakout was a fake one. The trend will turn in favor
of the bears if the pair drops below the right shoulder at $4.549.
ATOM/USD 4-hour chart. Source: TradingView
The
bulls have pushed the price above the overhead resistance at $5.877
that could start a new uptrend. The upsloping moving averages and the
RSI is in the positive territory suggest advantage to the bulls.
This
positive view will be invalidated if the bulls fail to defend the
breakout level during the next retest. If the price becomes pinned below
the neckline this will be a sign of weakness.
source link : https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-xrp-ada-xmr-atom
