Price analysis 10/12: BTC, ETH, XRP, BCH, BNB, LINK, DOT, ADA, LTC, CRO
U.S. equity markets are nearing all-time highs on the hopes that Democrats and Republican will break their current stalemate and strike a deal to release another round of stimulus for American citizens and the small businesses they operate.
While these monetary and fiscal stimulus measures have been proven to boost stock market returns in the short-term, they also add to the massive debt burden facing the U.S. Printing more money from thin air cannot be a permanent solution to every problem and at some point the chickens will come home to roost.
Daily cryptocurrency market performance. Source: Coin360
In the future this debt will become unmanageable and could lead to an economic and currency crisis. Several investors anticipate this and are hedging their risks by loading up on gold and Bitcoin (BTC).
These factors project a bullish view for Bitcoin in the long-term. However, in the short-term, the volatility is likely to remain high until the U.S. presidential elections are over.
Let’s study the charts of the top-10 cryptocurrencies to see whether traders are bullish or bearish in the short-term.
BTC/USD
Bitcoin (BTC) turned down from $11,482.44 on Oct. 10, but the bulls held the price above the immediate support at $11,178. This shows strength because the bulls did not wait for a deeper pullback to buy.
BTC/USD daily chart. Source: TradingView
The bulls have pushed the price above the overhead resistance at $11,500. If the BTC/USD pair sustains this rise, a rally to $12,050 will be on the cards.
The moving averages have completed a bullish crossover and the relative strength index has risen above 67, which suggests bulls are in control.
If the momentum picks up and the bulls drive the price above $12,050, the pair could retest $12,460. A breakout of this level may resume the uptrend towards $14,000.
Contrary to this assumption, if the pair turns down from the current levels and plummets below $11,178, it could signal aggressive shorting by the bears at higher levels. A break below the moving averages will shift the advantage in favor of the bears.
ETH/USD
Ether (ETH) broke above the 50-day simple moving average ($370) on Oct. 10 but could not sustain the higher levels. The biggest altcoin formed an inside day candlestick pattern on Oct. 11 but the positive thing is that it closed (UTC time) above the 50-day SMA.
ETH/USD daily chart. Source: TradingView
The uncertainty resolved to the upside today and the bulls are currently attempting to propel the price above the overhead resistance at $395. If the bulls can pull this off, the ETH/USD pair could rise to $488.134.
The 20-day exponential moving average ($360) has started to turn up and the RSI has risen above 61. This suggests that the bulls have the upper hand.
This positive view will be invalidated if the pair turns down from $395 and breaks below the 20-day EMA. Such a move could result in a few days of range-bound action.
XRP/USD
XRP is struggling to break out of the overhead resistance at $0.26. If the bears sink the price below the 20-day EMA ($0.247), the altcoin could drop to $0.24. Such a move will suggest that the range-bound action is likely to continue for a few more days.
XRP/USD daily chart. Source: TradingView
However, if the XRP/USD pair breaks out and closes (UTC time) above $0.26, it will complete an inverse head and shoulders pattern that has a target objective of $0.300288.
The upsloping 20-day EMA and the RSI in the positive territory suggest that the bulls have the upper hand.
This bullish view of a possible reversal will be invalidated if the pair turns down from the current levels and breaks below $0.24.
BCH/USD
The bulls pushed Bitcoin Cash (BCH) above the $242 resistance on Oct. 10 and 11, but the long wicks on the candlesticks show that the buyers could not sustain the higher levels. Consequently, the price re-entered the $200–$242 range.
BCH/USD daily chart. Source: TradingView
However, the sharp rebound off the 20-day EMA ($230) today and the long tail on the candlestick shows strong buying at lower levels. The gradually rising 20-day EMA and the RSI in the positive zone also suggest an advantage to the bulls.
If the BCH/USD pair breaks out and closes (UTC time) above the overhead resistance, it could start its northward march towards $280.
This bullish view will be negated if the pair again turns down from the current levels and breaks below the 20-day EMA.
BNB/USD
Binance Coin (BNB) has broken out of the symmetrical triangle and the overhead resistance at $29.5646. This shows that the triangle acted as a continuation pattern and the bulls have come out on top.
BNB/USD daily chart. Source: TradingView
Both moving averages continue to slope up and the RSI above 65 suggests that the path of least resistance is to the upside.
The uptrend is likely to resume with the next possible stop at $33.3888 where the bears might again mount stiff resistance. However, if the bulls can drive the price above this resistance, the BNB/USD pair may retest the highs at $39.5941.
This bullish view will be invalidated if the pair turns down from the current levels and breaks below the 50-day simple moving average ($25.72).
LINK/USD
Chainlink (LINK) broke above the downtrend line on Oct. 11 and is now attempting to rise above the 50-day SMA ($11.53). If the bulls can sustain the price above $11.20, it will break the sequence of lower highs and lower lows.
LINK/USD daily chart. Source: TradingView
Such a move will suggest that the downtrend is over and the LINK/USD pair could either start a new uptrend or remain range-bound for a few days.
Above the 50-day SMA, the pair might move up to $13.28 where the bears are again likely to offer stiff resistance. However, if the bulls can push the price above $13.28, it could start a new uptrend.
Contrary to this assumption, if the pair turns down from the current levels, a few days of range-bound action is possible.
DOT/USD
Polkadot (DOT) is struggling to rise above $4.6112. This suggests that the bears could be shorting on relief rallies to this resistance level.
DOT/USD daily chart. Source: TradingView
The 20-day EMA ($4.28) is flat and the RSI is just above the midpoint, which suggests a balance between supply and demand.
This balance will tilt in favor of the bulls if they can push and sustain the price above the overhead resistance at $4.6112. Above this level, the DOT/USD pair could rally to $5.5899.
However, if the pair turns down from the current levels and breaks below $4, it could remain range-bound for a few days.
ADA/USD
Cardano (ADA) is facing resistance at the neckline of the possible inverse head and shoulders pattern but the positive thing is that the bulls did not allow the price to sustain below the immediate support at $0.104044.
ADA/USD daily chart. Source: TradingView
The buyers will again attempt to push the price above the neckline and if they succeed, it will complete the reversal pattern. The first target on the upside is $0.128 and if this level is scaled, the next stop could be $0.1445.
This bullish view will be invalidated if the pair turns down from the current levels and breaks below the moving averages. Below this support, the ADA/USD pair may drop to $0.09 and then to $0.0855.
LTC/USD
Litecoin (LTC) broke above the 50-day SMA ($49.67) on Oct. 12 and the bulls will now try to push it above the overhead resistance zone of $51–$52.36. If they manage to do that the altcoin could start a new uptrend.
LTC/USD daily chart. Source: TradingView
The rising 20-day EMA ($47.65) and the RSI above 62 suggests that the bulls have the upper hand. On a close (UTC time) above $52.36, the LTC/USD pair may rally to $64 and then to $68.9008.
Instead, if the pair turns down from the overhead resistance zone, a few days of range-bound action is possible. The first sign of weakness will be a breakdown and close (UTC time) below the 20-day EMA.
CRO/USD
Crypto.com Coin (CRO) broke above the resistance line of the descending triangle pattern on Oct. 10 and this move invalidated the bearish setup.
CRO/USD daily chart. Source: TradingView
However, the bears have not yet thrown in the towel because they are trying to stall the relief rally at the 50-day SMA ($0.158).
If the bulls fail to push the price above the 50-day SMA, the bears will make one more attempt to sink the CRO/USD pair below $0.144743. If they succeed, the pair could drop to the next support at $0.124129 and then to $0.11.
Conversely, if the bulls can propel the price above the 50-day SMA, it could open the gates for a rally to $0.171541.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.