Bitcoin (BTC) had a good week with prices rising about 10% to reach the psychologically important level of $30,000. After the rally, the question troubling investors is whether the uptrend will continue or is time for a reversal to happen.
Trading team Stockmoney Lizards recently said that Bitcoin may soon break above its overhead resistance and start a sharp rally. They believe the approval for the exchange-traded fund will drive mass adoption and trigger the rally before the halving due in April 2024.
A positive development this week was that Bitcoin’s strength rubbed off on several altcoins, which surged above their respective overhead resistance levels. This suggests that the sentiment is gradually turning positive and that it may be time to consider buying selectively.
Typically, the coins that lead the markets higher are the ones that tend to do well. Laggards are generally the last to perform, hence could be avoided initially.
Let’s look at the charts of the top-5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin is witnessing a tough battle between the bulls and the bears near the $30,000 mark, but a positive sign is that the buyers have not given up much ground.
A consolidation near the current level suggests that the bulls are in no hurry to book profits as they anticipate another leg higher. That could catapult the price to the overhead resistance zone between $31,000 and $32,400.
Contrarily, if the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). If the price snaps back from this level, the bulls will again try to clear the overhead hurdle.
The positive sentiment will be negated on a break below the 20-day EMA. That could keep the pair stuck inside the $31,000 to $24,800 range for some more time.
Solana price analysis
Solana (SOL) broke out of the neckline on Oct. 19, completing a bullish inverse head and shoulders pattern. This setup has a target objective of $32.81.
The overbought levels on the relative strength index (RSI) suggest that a correction is possible. The important support to watch on the downside is $27.12. A strong bounce off this level will indicate that the bulls have flipped the level into support. That will improve the prospects of the continuation of the uptrend. Above $32.81, the rally could hit $39.
Chainlink price analysis
Chainlink (LINK) has been trading inside a tight range between $5.50 and $9.50 since May 2022 indicating a balance between supply and demand.
The bulls tried to resolve the uncertainty to the upside with a break above the range on Oct. 22 but the long wick on the candlestick shows that the bears are not willing to relent. If the bulls do not give up much ground from the current levels, it will enhance the prospects of a rally above $9.50.
The LINK/USDT pair could then start a move toward the pattern target of $13.50. Typically, a breakout from a long consolidation results in a sharp rally. In this case, the uptrend may stretch to $15 and thereafter to $18.
Aave price analysis
Aave (AAVE) rose above the downtrend line on Oct. 21, invalidating the bearish descending triangle setup. Generally, the failure of a negative setup starts a bullish move.
Both moving averages have started to turn up and the RSI is in the overbought territory, indicating that bulls are at an advantage. If the price maintains above the downtrend line, the AAVE/USDT pair may first surge to $88 and then to $95.
Stacks price analysis
Stacks (STX) rose sharply in the past few days, indicating that the bulls are trying to start a new uptrend.
The bullish crossover on the moving averages suggests that the bulls have an edge. In the short term, the overbought levels on the RSI indicate that a minor correction or consolidation is possible. The first support on the downside is the 20-day EMA ($0.54).
* Bitcoin witnessed a good week with prices rising about 10% to reach $30,000.
* Trading team Stockmoney Lizards believes that Bitcoin may soon break above its overhead resistance and start a sharp rally.
* Several altcoins surged above their respective overhead resistance levels, suggesting a gradually turning positive sentiment.
* Bitcoin price analysis shows that a consolidation near the current level suggests that the bulls are in no hurry to book profits.
* Solana price analysis indicates that the overbought levels on the relative strength index (RSI) suggest a possible correction.
* Chainlink price analysis shows that a breakout from the long consolidation could result in a sharp rally.
* Aave price analysis suggests that the failure of the bearish setup starts a bullish move.
* Stacks price analysis indicates a sharp rise, signaling the start of a new uptrend.