BTC, BNB, ADA, BCH, LINK

189
SHARES
1.5k
VIEWS
ADVERTISEMENT


Bitcoin (BTC) is up about 90% since the start of the year and is up nearly 191% since its lows in March. The rise has been gradual without much fanfare, suggesting that crypto believers are the ones who bought in 2020.

The monthly closing price in October at $ 13,798.99 is the highest ever, beating the closing price in December 2017 at $ 13,789.68. Bitcoin’s strong performance could now attract the momentum players and speculators looking to capitalize on the strength.

Related articles

Weekly performance data of the crypto market. Source: Coin360

In that case, Bitcoin could gain momentum and surprise investors upside down. This could lead traders to sell their altcoins to invest in bitcoin. Therefore, the off-season seems to be over in the short term.

Three of the five cryptocurrencies analyzed today may offer an upward trading opportunity while the other two may continue to decline. Let’s look at the critical levels that may indicate the beginning of a trend move.

BTC / USD

Bitcoin surged above the overhead resistance of $ 13,973.50 and hit an intraday high of $ 14,101.91 on October 31. Although the bulls failed to hold the price above the resistance, they haven’t given up much ground on the downside.

BTC / USD daily chart. Source: TradingView

This suggests that traders are in no rush to close their positions as they await another attempt by the bulls to push the price above the resistance.

Both the 10-day exponential moving average ($ 13,309) and the 50-day simple moving average ($ 11,505) are falling and the relative strength index is in the overbought territory. This suggests the cops are in command.

If the BTC / USD pair closes above $ 14,000, the next segment of the uptrend could begin, which can hit $ 16,500.

However, if the bulls do not hold the price above $ 14,000, the short term traders could lose their positions and the bears could go short. A break below the 10-day EMA is the first sign that the momentum has weakened.

The bears are likely to gain the upper hand if the pair falls and stays below the critical $ 12,460 support.

BTC / USD 4-hour chart. Source: TradingView

The pair is currently trying to hold above the 10 EMA. If this happens and the bulls manage to push the price above the $ 13,973.50 to $ 14,101.92 resistance zone, a new uptrend is likely.

However, the bearish divergence in the RSI suggests that the upward momentum is weakening. If the sellers can bring the pair below the 10 EMA, it is planned to drop to the 50 SMA and then to $ 13,000. Strong support in the $ 12,750-13,000 zone could attract buyers.

BNB / USD

Binance Coin (BNB) broke below the USD 28.50 support on October 30, but was able to rebound from intraday lows and close above USD 28.50. However, the Doji candle pattern on October 31st indicated indecision between the bulls and the bears.

BNB / USD daily chart. Source: TradingView

The bears are currently trying to resolve the indecision downward and gain the upper hand. If the BNB / USD pair breaks and closes below $ 27.50, the likelihood of falling increases to $ 24.86.

The declining 10-day EMA ($ 29.47) and the RSI in the negative zone suggest that the path of least resistance is on the downside.

If, contrary to this assumption, the price reverses direction and rises above USD 28.50, this indicates a few more days of consolidation.

BNB / USD 4 hour chart. Source: TradingView

The 4-hour chart shows that the rebound from $ 27.5111 is facing strong resistance at the 10-EMA. A break below $ 28 could challenge the $ 27.50 support. If broken, the next stop could be $ 26.50.

Both moving averages are falling and the RSI is near the oversold zone, suggesting an advantage for the bears.

That view will be invalidated if the pair turns around and rises above $ 29. Such a move indicates accumulation at lower levels and increases the possibility of a surge to $ 30.50.

ADA / USD

Cardano (ADA) broke below the bearish rising wedge pattern on October 26th, falling to the USD 0.0891 support. The bulls are currently trying to defend the support and push the price above the moving averages.

ADA / USD daily chart. Source: TradingView

However, the decline in the 10-day EMA ($ 0.988) and the RSI below 43 suggest the bears are in control. Therefore, the jump in the moving averages is likely to experience stiff resistance.

If the ADA / USD pair deviates from this resistance, the bears will try again to break the USD 0.0891 support. Such a move opens the gates for a drop in the next support at $ 0.0755.

This bearish view will be invalidated if the bulls can push and hold the price above the moving averages. Such a move could result in a rally to $ 0.11.

ADA / USD 4 hour chart. Source: TradingView

The bulls have pushed the price above the 10 EMA on the 4-hour chart. The pair could now move to the 50-SMA where bears can step back in and sell.

Although the 50 SMA is still falling, the 10 EMA is trying to rise and the RSI has risen to the midpoint, suggesting that selling pressures have eased in the short term.

However, if the pair drops from current levels or the 50-SMA, the bears will try again to bring the price below the $ 0.0891 support. If they are successful, the next leg of the downward movement could begin.

BCH / USD

Bitcoin Cash (BCH) has formed a symmetrical triangle that usually acts as a continuation pattern. However, since this setup indicates indecision between the bulls and the bears, it is better to wait for the price to go above the triangle before making a direction bet.

BCH / USD daily chart. Source: TradingView

Both moving averages are rising and the RSI is above 59, which suggests that the bulls have the upper hand. If the bulls can push and hold the price above the triangle, the BCH / USD pair could move to $ 280 and then to $ 296.87.

Contrary to this assumption, the BCH / USD pair could fall to the critical support at USD 242 if the price breaks below the triangle. The 50-day SMA ($ 239) is just below this support, so the bulls can buy a drop into this zone.

BCH / USD 4 hour chart. Source: TradingView

The bulls pushed price above the resistance line of the symmetrical triangle but were unable to maintain higher levels and the bears pulled price back into the triangle.

However, if the pair bounces off the 50-SMA or the 10-EMA, the bulls will make another attempt to push the price above the triangle. If successful, momentum could accelerate and a rally to $ 280 is likely.

This positive view will be negated if the price falls below the moving averages and falls below the symmetrical triangle.

LINK / USD

Chainlink (LINK) has been trading on an ascending channel for a few days. Although the pace of increase has been slow, the altcoin has made successively higher highs and higher lows.

LINK / USD daily chart. Source: TradingView

The LINK / USD pair is currently correcting after the overhead resistance fell at USD 13. Both moving averages have flattened out and the RSI is close to the midpoint, suggesting a balance between supply and demand.

The bulls are likely to buy the drop in the channel’s support line. If the price rebounds from this support with strength, the bulls could try again to push the pair above $ 13.

That positive view will be invalidated if the bears cut the price below the channel. Such a move could bring the price down to $ 8.3817 and below to $ 7.2869.

LINK / USD 4 hour chart. Source: TradingView

The bulls are currently trying to defend the uptrend line. If they can push the price above the downtrendline, the pair could begin its journey towards USD 13.

However, the 10-EMA has flattened and the RSI has been trading in negative territory, suggesting that bears are trying to make a comeback in the short term.

If the bears can pull the price below the uptrendline, the pair could fall to the support line of the channel. The bulls will try to defend this support and if they succeed the pair may hit the downtrend line.