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BTC, BNB, ADA, BCH, LINK

November 1, 2020

Bitcoin (BTC) is up about 90% so far this year, up nearly 191% from the March low. The surge was gradual and without much ado, suggesting that crypto-believers are the ones who bought in 2020.

The monthly close in October is the highest in history at USD 13,798.99, beating the December 2017 close of USD 13,789.68. Bitcoin’s strong performance could now attract momentum players and speculators looking to capitalize on that strength.

Weekly performance of the cryptocurrency market. Source: Coin360

BTC, BNB, ADA, BCH, LINK
BTC, BNB, ADA, BCH, LINK

If so, Bitcoin could gain momentum and surprise investors with a surge. This could lead traders to sell their altcoins to invest in bitcoin. therefore that “Old season” seems to be over short term.

Three of the top five cryptocurrencies we’re about to discuss today may offer upside opportunity while the other two may continue to decline. Let’s look at the critical levels that can 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. While the bulls couldn’t keep the price above such resistance, they haven’t lost much of their ground.

Daily chart of the BTC / USD pair. Source: TradingView

This suggests that traders are in no rush to close their positions. because they are waiting for 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 both rising, and the Relative Strength Index is in the overbought territory. This suggests the cops are leading the way.

If the BTC / USD pair manages to close above $ 14,000, it could begin the next phase of the uptrend where the price can climb to $ 16,500.

But still, If the bulls fail to keep the price above $ 14,000 again, short-term traders may exit their positions and bears may enter short positions. A break below the 10-day EMA is the first sign that momentum has subsided.

It is possible that the bears will gain the upper hand if the pair falls and stays below the critical $ 12,460 support.

BTC / USD 4 hour chart. Source: TradingView

Nowadays, The pair is trying to stay above the 10-day EMA. If this happens and the bulls manage to push the price above the resistance zone from $ 13,973.50 to $ 14,101.92, then a new uptrend is likely to begin.

However, the bearish divergence in the RSI suggests that the upside momentum is easing. If sellers can get the pair below the 10-day EMA, a break into the 50-day SMA and then $ 13,000 will kick in the opportunity. Strong support in the $ 12,750-13,000 zone could attract buyers.

BNB / USD

Binance Coin (BNB) fell below the support at $ 28.50 on October 30, but was able to rebound from intraday lows to close above $ 28.50. However, the October 31st Doji candlestick pattern signals that there is indecision between the bulls and the bears.

Daily chart of the BNB / USD pair. Source: TradingView

Nowadays, The bears are trying to break down the indecision and gain the upper hand. If the BNB / USD pair falls and closes below $ 27.50, the chances increase that we will see a dip to $ 24.86.

The 10-day EMA ($ 29.47) and the RSI within the negative zone suggest that the path of least resistance is pointing down.

Contrary to this assumption If the price reverses direction and rises above USD 28.50, we will see consolidation for a few more days.

4-hour chart of the BNB / USD pair. Source: TradingView

The 4-hour chart shows the $ 27.5111 rebound in the 10-day EMA is facing strong resistance. A dip below $ 28 could test the support at $ 27.50. If that fails too, the next stop could be at $ 26.50.

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

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 chance of reaching $ 30.50.

ADA / USD

Cardano (ADA) fell below the bearish ascending wedge pattern on October 26, falling to the support at $ 0.0891. The bulls are trying to defend this support and push the price above the moving averages.

Daily chart of the ADA / USD pair. Source: TradingView

But still, The 10-day EMA ($ 0.988) and the RSI below 43 suggest the bears are in command. Therefore, it is possible that the rebound in the moving averages is subject to strong resistance.

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

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

4-hour chart of the ADA / USD pair. Source: TradingView

The bulls pushed the price on the 4-hour chart above the 10-day EMA. The pair could now move up to the 50-day SMA, where the bears can step back into action and start selling.

Although the 50-day SMA is still moving down, the 10-day EMA is trying to move up and the RSI has risen to the midpoint, suggesting that selling pressures have eased in the short term.

However, if the pair breaks from its current level or the 50-day SMA, the bears will try again to bring the price below the $ 0.0891 support. When they find their way, you could begin the next stage of the downward movement.

BCH / USD

Bitcoin Cash (BCH) formed a symmetrical triangle that generally acts as a continuation pattern. However, since this setup indicates indecision between bulls and bears, it is best to wait until the price is above the triangle before placing a directional bet.

Daily chart of the BCH / USD pair. Source: TradingView

Both moving averages are rising and the RSI is above 59, suggest the cops have the upper hand. If the bulls can push and hold the price above the triangle, the BCH / USD pair could hit $ 280 and $ 296.87 later.

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

4-hour chart of the BCH / USD pair. Source: TradingView

The bulls had pushed the price above the symmetrical triangle resistance line, but they could not maintain the higher levels and the bears pulled the price back into the triangle.

However, if the pair bounces off the 50-day SMA or the 10-day 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 point of view will be null when the price falls below the moving average and falls below the symmetrical triangle.

LINK / USD

Chainlink (LINK) has been trading on an ascending channel for a few days. Although the rate of increase has been slow, the altcoin has made successively higher highs and 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 and the RSI is close to the midpoint, signaling a balance between supply and demand.

It is possible for the bulls to buy during the immersion in the canal support line. If price bounces off this support strong enough, the bulls may try again to carry the pair above $ 13.

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

LINK / USD 4 hour chart. Source: TradingView

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

However, the 10-day EMA has flattened and the RSI has broken into negative territory, suggesting that the bears are trying to return in the short term.

If the bears can pull the price below the rising trendline, the pair could fall to the channel’s support line. The bulls will try to defend this support and if they find their way the pair can move up to the downtrend line.

The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.