Hopes that the U.S. Securities and Exchange Commission will approve a spot Bitcoin (BTC) exchange-traded fund pushed Bitcoin prices up 27% in October. This improved market sentiment, attracting active buying from cryptocurrency investors.
Eric Balchunas, senior ETF analyst at Bloomberg, highlighted in an article published on Big trading week price at $1.7 billion. Similarly, Grayscale Bitcoin Trust (GBTC) has a trading volume of $800 million. The sharp rise in trading volume in the existing instrument suggests that the spot Bitcoin ETF may see significant trading volume upon listing.
When leaders begin to perform, it often lifts the entire industry. This can be seen in the strong performance of altcoins, which have risen significantly from multi-year lows.
However, after the initial rally, some altcoins will struggle to sustain the upward trend, while a few will lead the market higher. It’s best to stick to the leaders as they are the ones most likely to outperform during the next crypto bull phase.
Let’s take a look at the charts of the top 5 cryptocurrencies that are likely to extend their rally in the coming days.
Bitcoin Price Analysis
On October 24, Bitcoin retreated from $35,280, indicating that higher levels were attracting traders to sell. On October 27, bears attempted to initiate a deeper pullback, but the long tail on the candlestick showed strong buying at lower levels.
While rising moving averages are bullish for buyers, overbought levels on the Relative Strength Index (RSI) suggest that the BTC/USDT pair may take more time to consolidate.
Important levels to watch on the downside are $32,400 and then $31,000. Sellers must pull prices below this area to seize control.
On the contrary, if the price rises from current levels and breaks $35,280, it will indicate that the bulls are back in control. The pair may then surge towards the next target of $40,000.
The 20-day moving average is gradually flattening, suggesting bulls are losing control in the short term. This could keep the pair trading between $35,280 and $33,200 for some time. If the bears sink the price below $33,200, the pair may drop to $32,400.
On the contrary, if the price rises and rebounds above $35,280, it would indicate that the current consolidation is a continuation pattern. The pair could then surge towards $40,000.
Ethereum price analysis
Ethereum (ETH) climbed above the $1,746 resistance on October 23 and reached $1,865 on October 26. This level attracted selling from short-term traders, pulling the price back to the $1,746 breakout level.
Bulls managed to hold on to a retest of $1,746, suggesting that this level could serve as a new bottom. The rising 20-day EMA ($1,693) and the RSI are approaching overbought territory, indicating that bulls are in charge. Buyers will then try to push the price above $1,865. If they succeed, the ETH/USDT pair could surge to $2,000.
If the bears want to halt the rise, they will have to pull the price down significantly and sustain the price below $1,746. This could open the door for a drop to the 20-day EMA.
The 20-EMA on the 4-hour chart is flattening and the RSI is near its midpoint, suggesting range-bound action in the near term. The pair is likely to continue trading between $1,746 and $1,865 for some time.
If the bulls push the price above $1,812, the chances of a rebound towards the overhead resistance at $1,865 increase. On the other hand, if the price sustains below the 20 EMA, the bears will try to pull the pair below $1,746. If this happens, the short-term trend will turn bearish.
Aptos (APT) Price Analysis
Aptos (APT) has surged higher over the past few days, showing that bulls are trying to mount a comeback.
The APT/USDT pair took profits near $7, but a small positive is that the bulls did not give up too much ground. This shows that every time there is a small dip there is buying. The bulls will once again try to overcome the $7 hurdle. If they succeed in doing this, the pair could start a march towards $8.
Conversely, if the price declines from $7, it would indicate that bears are still active at higher levels. The pair is likely to spend more time in a tight range between $7 and $6.20. A break below this support could mark the beginning of a deeper correction.
The pair has been finding support at the 20-day EMA, but negative divergence in the RSI suggests bullish momentum may be slowing. If the price breaks out and holds below the 20 EMA, it would signal the beginning of a deeper correction towards the 50 EMA.
This remains a key level to watch on the downside, as if this level breaks, the pair could drop to $5.80. On the bright side, bulls will have to push the price above $7.02 to signal the beginning of the next phase of recovery.
related: Ripple CEO criticizes comments by former SEC Chairman Jay Clayton
Quantitative Price Analysis
On October 23, Quant (QNT) rose to a breakout level of $95, indicating that the market had rejected lower levels. On October 25, buying continued, with bulls pushing the price above the downtrend line. This signals a potential trend change.
Short-term bulls appear to be taking profits after the recent rally. This could pull the price down to the downtrend line. This is an important level to watch, as a break below it could signal a rise above the downtrend line that could be a bull trap.
On the contrary, if the price bounces off the downtrend line, it means that the bulls have turned that level into support. If buyers break the $110 barrier, it would suggest a rebound towards $120 and then to $128.
The 4-hour chart shows that the QNT/USDT pair is facing a sell-off near $108. The bears pulled the price below the 20 EMA, indicating that short-term traders are taking profits. If the price falls below $103, the pair may drop to $100.
On the contrary, if the bulls sustain the price above the 20 EMA, it will indicate that lower levels continue to attract buyers. The bulls will then make another attempt to push the price above $110 and start the next leg of the increase.
THORChain Price Analysis
THORChain (RUNE) broke out and closed above resistance above $2 on October 23, completing a bullish inverse head and shoulders pattern.
Both moving averages are sloping upwards and the RSI is in overbought territory, showing that bulls are still in control. However, in the short term, the RUNE/USDT pair may enter a minor correction or consolidation.
If the pair does not retrace too much from current levels, it means bulls are holding on to their positions. This could improve prospects for a rally to $3 and subsequently to the $3.23 model target. If the bears want to stop this uptrend, they will have to pull and sustain the price below $2.
The pair has been in a strong uptrend, with bulls buying the 20-day EMA on dips. While the upward sloping moving averages suggest buyers have the advantage, the negative RSI divergence suggests bullish momentum may be waning.
If the price falls below the 20 EMA, it may attract short-term traders to take profits. This could pull the price towards the 50 moving average.
On the contrary, if the price rebounds strongly from the 20-day moving average, it means that the market sentiment remains positive. The bulls will then try to resume the uptrend and break above $2.57.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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