Bitcoin (BTC) is currently priced at $67,891, down just over 2% this week. A positive takeaway for investors is that buyers have maintained the price above $65,000, leading to a recovery that pushed Bitcoin above $67,500 on October 27. Analysts from Kraken suggest that Bitcoin's outlook remains constructive as long as it stays above $66,500.
However, not all analysts share this bullish sentiment. Crypto analyst Luca warned in a recent post that Bitcoin might experience "another flush to $60K" before confirming a local bottom.
Many analysts anticipate an altcoin season following a drop in Bitcoin's dominance to around 60%. Pseudonymous trader Willy Woo noted that while an altcoin season is expected, its intensity will likely diminish compared to the 2017 altcoin bubble.
Could Bitcoin’s potential rise above $70,000 create short-term buying opportunities in altcoins? Let's explore the top five cryptocurrencies showing strong potential based on current charts.
On October 25, sellers attempted to push Bitcoin below the 20-day exponential moving average (EMA) of $66,201, but buyers stepped in to defend the level. This indicates a positive market sentiment, with traders actively buying on dips.
For Bitcoin to signal a continuation of its upward trend, it must rise above the resistance level at $69,550. A successful breach could propel the price towards $73,777. Although $70,000 presents a resistance hurdle, it is anticipated to be crossed. If the BTC/USDT pair reaches $72,000, significant resistance from bears is expected.
Conversely, if the price breaks and closes below $65,000, bears may gain control, leading the pair down to the 50-day simple moving average (SMA) of $63,259, and potentially to crucial support at $60,000.
To confirm bullish momentum, buyers must push the price above the downtrend line, which could trigger a rally towards $70,000. However, a break below $66,500 would favor bears, risking a drop to $65,000, with further declines possible if this support level fails, potentially down to $62,000.
Solana (SOL) is currently priced at $174.26 and broke out of an ascending triangle pattern on October 20. The bulls successfully defended the breakout level during a retest on October 25. The price has risen above the 20-day EMA, but a negative divergence on the RSI suggests that momentum may be slowing.
Resistance is anticipated at $179, where bears may attempt to halt the recovery. Should the price turn down and break below the 20-day EMA, it may retest the $164 support level. Conversely, a successful move above $179 would indicate the resumption of the uptrend, potentially leading to a rally towards $189.
Dogecoin (DOGE), currently priced at $0.1427, broke out of a symmetrical triangle pattern on October 18 and defended the breakout level during a pullback on October 25. The 20-day EMA ($0.13) is trending upward, and the RSI remains positive, indicating bullish control.
For buyers, maintaining the price above the $0.15 resistance is crucial. If achieved, the DOGE/USDT pair could surge to $0.17 and eventually to $0.19. Conversely, a downturn from the current level or a retreat back into the triangle would suggest rejection of the breakout, potentially driving the price down to the 50-day SMA ($0.11).
Overall, buyers appear to be pushing past significant resistance, indicating a possible trend change in the short term. If the price turns down and breaks below the 20-day EMA, it could signal a bull trap, leading to a drop to the support line of the channel.
Bitcoin’s recent performance, alongside strong technical setups in altcoins like Solana and Dogecoin, presents an intriguing landscape for crypto investors. As market sentiment fluctuates, close attention to key support and resistance levels will be essential in navigating potential price movements.
October 2024, Cryptoniteuae