Bitcoin Signal Potential Range Expansion – Will SOL, LDO, ICP and VET Follow?
The S&P 500 index rose 0.45% to record its second positive week. With US stock markets sluggish, gold has seen a run of more than 5 percent this week. The 3.11% rally recorded on October 13 was its best one-day performance since December 1 last year. However, Bitcoin (BTC) bulls have had no luck as Bitcoin is on track to end the week up more than 3%.
Bitcoin's weakness and regulatory overlap have led crypto investors to shy away from altcoins. This has kept Bitcoin's market dominance hovering over the 50% mark for the past few days.
Market watchers are likely to keep their focus on Bitcoin over the next few days. The longer the bulls stay above $25,000, the more likely the next move will be higher. As crypto investors perceive a bull market, a surge in Bitcoin will trigger buying in select altcoins.
Select cryptocurrencies are showing signs of formation. If they diverge upwards, a new movement may begin. Let's study the charts of top-5 cryptocurrencies that are likely to outperform in the near future.
Bitcoin price analysis
Bitcoin has been trading between moving averages for the past few days, indicating indecision between bulls and bears about the next directional move.
Often, strict consolidation is followed by regional expansion. In this case, if the buyers push the price above the 20-day exponential moving average ($27,110), the BTC/USD pair can rise to $28,143. The Bears are expected to mount a strong defense at this stage.
Alternatively, if the price declines and dips below the 50-day simple moving average ($26,671), it would indicate that the bears have confirmed their dominance. The pair may drop first to $25,990 and later to major support at $24,800. This level can attract bulls to buy aggressively.
The pair's recovery faces selling at the 20-EMA on the 4-hour chart, but a positive sign is that the bulls haven't given up much ground. This indicates that buyers did not rush to the exit and will continue the pressure.
If the 20-EMA breaks out, the pair may first rise to the 50-SMA. This level can act as a minor barrier, but if it breaks, the pair could rise to $27,750 and then to $28,143.
Conversely, if the bulls fail to break the 20-EMA, the sellers will see an opportunity to lower the price. A break below $26,500 could sink the pair to $26,000 and then to $24,800.
Solana price analysis
Solana (SOL) is seeing a fierce battle between bulls and bears near the 20-day EMA ($21.77). This shows that the bulls are trying to turn this level into support.
There is minimal resistance at $22.50, but if this level is crossed, the SOL/USDT pair may climb into the neck of an inverse head and shoulders pattern. Resting and closing above this resistance completes the knee position. Buyers may face strong resistance at $27.12, but if this barrier is cleared, the pair may move higher towards the target objective of $32.81.
This positive outlook will be negated in the near term if the price declines and falls below the 50-day SMA ($20.50). That could start to drop to $18.58 and down to $15.33.
After trading between moving averages for some time, the price is nearing a break with a break below the 20-EMA. This indicates that the bears can be kept under control. The pair may first fall to $20.93 and if this level is broken, the pair may fall to $20.
Conversely, if the price fails to stay below the 20-EMA, it suggests strong buying at lower levels. The first strength signal breaks and closes above the 50-SMA. That opens the doors for the rally to $23.50 and then to the neckline of the reverse H&S pattern.
Lido DAO price analysis
Lido Dao (LDO) has been trading near its moving averages for the past few days, indicating that the bears may be losing their grip.
The moving averages are flat and the RSI has jumped into positive territory, indicating that the bulls are trying to make a comeback. The immediate resistance at the top is $1.73. If this level is weighed, the LDO/USDT pair can move downwards. This stage is likely to witness another fierce battle between the bulls and bears.
On the contrary, if the price declines and slips below the moving average, it indicates that the bears are ordering and selling on every minor rally. The pair can retest the necessary support at $1.38.
The 20-EMA has started to light up on the 4-hour chart and the RSI is in a positive position, indicating that the bulls are dominant. There is a small resistance at $1.63 but it can be crossed. The pair could then rise to $1.73.
If the bears want to weaken the momentum, they need to quickly pull the price below the moving averages. The pair may drop to the $1.45 to $1.50 support zone.
Related: Bitcoin traders eye weekly volatility with $27K BTC price on radar
Internet computer cost analysis
Internet Computer (ICP) has been consolidating in a tight range between $2.86 and $3.35 for the past several days.
RSI has formed a positive divergence, which indicates that the selling pressure is decreasing. The ICP/USDT pair may reach the upside resistance at $3.35. A break and close above this level indicates the possibility of a trend reversal. The first target at the top is $4 and then $4.50.
Contrary to this assumption, if the price falls below $3.35, it suggests that the pair should extend its stay in the range for an additional period. A slide below $2.86 indicates a resumption of the downtrend.
The moving averages have completed a bullish crossover and the RSI is in the overbought zone on the 4-hour chart. This indicates that the rulers are dominant. The pair may reach an upward resistance at $3.35 where the bears may pose a strong challenge.
If the price breaks below $3.35, the consolidation may continue for some time. On the other hand, if buyers push the price above $3.35, it shows that the bulls are in charge. The pair may move higher towards the $3.74 and later the $3.84 pattern target.
VeChain price analysis
VeChain (VET) has been trading in a descending triangle for the past few days. Although this is a negative pattern, the price has stuck to the lower line in the last few days, which is a positive sign.
The moving averages are flat and the RSI is near the midpoint, indicating that the bearish pressure may be easing. Buyers try to push the price above the lower line. If they succeed, it destroys the negative configuration. That could initiate a new move towards $0.021.
Instead, if the price declines from the current level, it suggests that the bears will continue to defend the lower line effectively. The bears will again try to pull the price to the critical support at $0.014.
The 4-hour chart shows that the price was trading in a falling wedge pattern. Buyers are trying to push and hold the price above the 50-SMA. If they do that, the VET/USDT pair may reach a wedge downtrend line. A break and close above a wedge can initiate a new move.
The bears do not give up easily. They strongly defend the zone between the 50-SMA and the downtrend line. If the price declines sharply and slips below the 20-EMA, it indicates that the pair may remain in a wedge for some time.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
