Market Overview and Bitcoin's Recovery Attempt
Bitcoin (BTC) experienced a notable drop of approximately 8% last week, but this decline attracted buyers, leading to an attempted recovery. At the start of the new week, bulls are aiming to push the price above the $88,000 mark. Data from Farside Investors indicates that spot BTC exchange-traded funds saw inflows of $238.4 million on Friday, suggesting renewed buyer activity.
Analysts at wealth manager Swissblock have suggested that the sharply declining risk-off signal indicates a reduction in selling pressure, potentially signifying that the "worst of the capitulation" may be over for the time being. They further noted that fading selling pressure coupled with a weaker second selling wave would confirm a more reliable bottom.
Arthur Hayes, co-founder of BitMEX, has posited that BTC might experience price fluctuations below $90,000 and could potentially dip into the lower $80,000s. He anticipates that the $80,000 level will likely hold as support.
The current market sentiment raises the question of whether BTC and major altcoins can initiate a sustained recovery or if higher price levels will attract renewed selling pressure. An analysis of the charts for the top 10 cryptocurrencies provides insights into these possibilities.
S&P 500 Index Price Prediction
The S&P 500 Index (SPX) showed a positive turn from the 6,550 support level on Friday, and bulls are working to extend this recovery into Monday.
This relief rally is expected to encounter selling pressure in the zone between the moving averages and the resistance line. Should the price reverse downwards from this overhead zone, bears will likely attempt to push the index below 6,550. A successful breach of this level could lead to a significant drop towards the 6,350 level.
Conversely, a decisive break and close above the resistance line would indicate that the corrective phase may have concluded. In such a scenario, the index could potentially retest its all-time high of 6,920.
US Dollar Index Price Prediction
The US Dollar Index (DXY) has been facing resistance near the 100.50 level. However, a positive development for bulls is that they have managed to prevent significant losses to the bears.
The gradually upward-sloping moving averages and the Relative Strength Index (RSI) in positive territory suggest that the path of least resistance for the DXY is to the upside. If the price successfully breaks above the 100.50 level, the index could surge towards the 102 level. A close above the 102 resistance would complete a rounding bottom pattern, signaling a potential shift in the trend.
For sellers to weaken the bullish momentum, they would need to pull the price below the 20-day exponential moving average (EMA), which is currently at 99.62. A breach of this level could lead to a drop towards the 50-day simple moving average (SMA) at 98.81.
Bitcoin Price Prediction
Bitcoin (BTC) is currently attempting a recovery after falling to the $80,600 level on Friday. However, it is anticipated that higher price levels may attract renewed selling pressure.
The 20-day EMA, currently at $94,620, is expected to act as a significant resistance level. If the Bitcoin price experiences a sharp downturn from the 20-day EMA, it would suggest that market sentiment remains negative and that bears are actively selling during rallies. This scenario increases the risk of a decline to the $73,777 level, where buyers are expected to step in.
For buyers to regain strength, they must push and sustain the price above the 20-day EMA. A successful move above this level could lead the BTC/USDT pair towards the psychological milestone of $100,000.
Ether Price Prediction
Ether (ETH) is showing signs of attempting a recovery, but this move is likely to encounter substantial resistance in the zone between the 20-day EMA at $3,148 and $3,350.
If the price reverses downwards from this overhead zone, bears will likely attempt to resume the downtrend. A decisive break and close below $2,623 would signal the commencement of the next phase of the downtrend, with potential targets at $2,400 and subsequently $2,111.
Conversely, if buyers manage to push the Ether price above $3,350, the ETH/USDT pair could ascend towards the 50-day SMA at $3,659. A close above the 50-day SMA would indicate that bulls are regaining control of the market.
XRP Price Prediction
XRP rebounded from the support line on Saturday, indicating that bulls are actively working to keep the price within the confines of the descending channel pattern.
Bears are unlikely to concede easily and will attempt to halt the current relief rally at the moving averages. If the price experiences a sharp downturn from the moving averages, sellers will likely try to pull the XRP/USDT pair down to the $1.61 level.
On the other hand, a break above the moving averages could propel the price towards the downtrend line. For a potential trend change to be suggested, buyers will need to pierce and sustain the XRP price above this downtrend line.
BNB Price Prediction
BNB is attempting a recovery after reaching a low of $790 on Friday. However, sellers are anticipated to become active at higher price levels.
If the price experiences a sharp downturn from the $860 level, it would suggest that bears have successfully converted this level into resistance. This scenario increases the likelihood of a break below $790, potentially leading the BNB/USDT pair to plummet towards $730.
The 20-day EMA at $920 remains a critical overhead resistance level to monitor. A break and close above the 20-day EMA would indicate that the market has rejected a move below $860. In this case, the BNB price could rally towards $1,019.
Solana Price Prediction
Solana (SOL) is attempting to find support at the $126 level, but the shallow rebound suggests a lack of aggressive buying from bulls.
If the price turns downwards from the current level or the 20-day EMA at $145, it would indicate that bears are active at higher price points. The SOL/USDT pair would then be at risk of dropping below the $126 support. A breach of this level could lead to a tumble towards $110 and subsequently to $95.
Conversely, a break and close above the 20-day EMA would signal that bulls are attempting a comeback. The pair could then aim for a rally towards the 50-day SMA at $174.
Dogecoin Price Prediction
Dogecoin (DOGE) bounced off the $0.15 support on Saturday, indicating that bulls are actively defending this level.
The presence of positive divergence on the RSI suggests that selling pressure is diminishing. For bulls to demonstrate strength, they will need to drive the Dogecoin price above the 20-day EMA at $0.16. A successful move above this level could lead the DOGE/USDT pair towards the 50-day SMA at $0.18.
Alternatively, if the price experiences a sharp downturn from the 20-day EMA, bears will likely attempt to drag the pair below $0.14. A failure to hold this level could result in a collapse towards the October 10 low of $0.10.
Cardano Price Prediction
Cardano (ADA) is attempting to find support at the $0.38 level, but the weak bounce suggests that bears are not yielding their control easily.
If the price turns downwards from the current level and breaks below $0.38, the ADA/USDT pair could resume its downtrend. The Cardano price might then descend towards the October 10 low of $0.27.
The $0.50 resistance level is a crucial point to watch on the upside. If the price reverses downwards from $0.50, it would indicate that bears remain in control, putting the $0.38 level at risk of a breakdown.
Conversely, a close above $0.50 would suggest that bears are losing their grip, potentially leading to a rally towards the 50-day SMA at $0.60.
Bitcoin Cash Price Prediction
Bitcoin Cash (BCH) experienced a sharp upward turn from the $443 support on Friday, successfully breaking above the resistance line of the falling wedge pattern.
While bears are attempting to pull the price back into the wedge, bulls have maintained their ground. If the price turns upwards and breaks above $568, it would signal the initiation of a new upward move, with potential targets at $615 and subsequently $651.
This positive outlook would be invalidated in the near term if the Bitcoin Cash price reverses downwards and breaks below the moving averages. Such a move would suggest that the break above the resistance line might have been a bull trap. In this scenario, the BCH/USDT pair could retest the $443 support level.