How can the prices of the Top 3 cryptocurrencies BTC, ETH and BNB by market capitalization be in the short term?
After Bitcoin (BTC) and Ethereum (ETH) prices hit all-time highs, there was an aggressive profit-taking process. This shows that traders buying on Bitcoin exchange-traded fund rumors are selling after the successful launch of the ProShares Bitcoin Strategy exchange-traded fund (ETF) (BITO).
The bulls attempted a rebound in Bitcoin after the launch of the second BTC futures-linked ETF by digital asset manager Valkyrie on October 22, but faced strong selling pressure at higher levels.
So what can happen in the top 3 cryptocurrencies in the coming days? Cointelegraph analyst Rakesh Upadhyay shared price assessment and technical analysis for the three largest cryptocurrencies by market cap.
BTC/USDT – Bitcoin technical analysis
Bitcoin hit an all-time high of $67,000 on October 20, but the bulls were unable to sustain that rise as the bears pulled the price below the breakout level of $64,854 on October 21. This indicates that sellers are trying to trap aggressive bulls.
The bears tried to recover on October 22, but the long wick on the day’s candlestick indicates that traders are selling on small rallies. Strong support to watch on the downside is at the 20-day exponential moving average (EMA) ($58,035).
If the price bounces back from this support, it will indicate that sentiment remains positive and traders are buying on the dips. This will increase the likelihood of a breakout above the overhead resistance zone between $64,854 and $67,000. The pair could rally as high as $75,000 later.
On the other hand, if the price drops below the 20-day EMA, selling could accelerate and BTC/USDT could drop to the 50-day simple moving average (SMA) ($50,705).
ETH/USDT – Ethereum price analysis
Ethereum price climbed above the overhead resistance of $4,027.88 on October 20 and closed there. Subsequently, there was another sharp rise on October 21 that pushed the price to $4,375, just above the previous all-time high of $4,372.72.
However, the long wick observed on the day’s candlestick and the negative close on October 21 suggest that traders may have sold aggressively at the price close to all-time highs. The bears are trying to keep the price below the breakout level of $4,027.88.
The rising 20-day EMA ($3,739) and the relative strength index (RSI) in the positive zone suggest that the bulls are ruling the market. If the price bounces off the current level, the bulls will make another attempt to push the ETH/USDT pair to its all-time high.
Meanwhile, a break below the neckline and daily close of the inverted head-to-shoulder (H&S) pattern marks the beginning of a deep correction to $3,200.
BNB/USDT – Binance Coin technical analysis
Binance Coin (BNB) price is down from $505.90, which indicates that the bears are maintaining the overhead resistance level around $518.90. The altcoin did not fall to the 20-day EMA ($457), which is likely to act as a strong support.
If the price bounces off the 20-day EMA, the BNB/USDT pair may make another attempt to surpass the overhead resistance at $518.90. If it succeeds, the pair could rally towards its model target of $554.
The rising 20-day EMA and the RSI in the positive zone indicate that the bulls have the upper hand. This advantage could shift in favor of the bears if the price drops and dips below the moving averages. A break below $392.20 could intensify selling.
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