Bitcoin (BTC) has rebounded strongly after falling below $60,000 this week, but buyers are struggling to sustain higher levels. Buying on dips and selling on rallies signals the formation of a tight range in the near term.
One small positive is that the lower levels are showing solid demand. After three days of outflows, US-based spot Bitcoin ETFs saw inflows of $253.6 million on October 11.
Bitcoin remains stuck in sideways price action, but some analysts appear to be turning bullish on altcoins. Based on specific metrics, analysts believe the altcoin market could be entering a âbull season.â
If Bitcoin holds above $60,000, traders may gradually shift their focus to select altcoins. Letâs take a look at the top 5 cryptocurrencies that look strong on the charts.
BTC Technical Analysis
Bitcoin crossed above the 20-day exponential moving average ($62,119) on October 11, but bulls could not push the price to the overhead resistance at $65,000.
The bears are attempting to pull the price below the 20-day EMA. If they succeed, the BTC/USDT pair could slide to the 50-day simple moving average ($60,727). The support zone between the 50-day SMA and $60,000 is crucial for the bulls to defend as a break below this level could open the doors to $57,500.
Contrary to this assumption, if the price rebounds strongly from the 20-day EMA, it will indicate that the bulls are buying on dips. The pair could then rise to $66,500. This level could again be a tough challenge, but if the bulls prevail, the rally could reach $70,000.
The 4-hour chart shows that the price has declined from the resistance line of the descending channel pattern but is finding support at the moving averages. If the price bounces from the moving averages, the bulls will attempt to push the pair above the channel, starting a rally to $65,000.
Conversely, if the price breaks out and stays below the moving averages, this will signal that the pair may fluctuate inside the channel for a while longer. After that, the pair may drop to $60,000.
SUI Technical Analysis
Sui ((SUI) rebounded from the 20-day EMA ($1.82) on October 11 and surged above the overhead resistance at $2.18 on October 12.
The bears will attempt to pull and sustain the price below the breakout level of $2.18 and trap the aggressive bulls. If they succeed, the SUI/USDT pair could correct to the 20-day EMA, which remains a key support to watch out for. A break below the 20-day EMA could start a deeper correction to $1.60.
Conversely, if the price remains above $2.18 on the close, it would suggest that the bulls are trying to flip this level into support. That could start the next leg of the uptrend towards $2.50 and then $3.
The $2.18 level is likely to see a tough battle between the bulls and the bears. If the price breaks below $2.18 but bounces back from the 20 EMA, it will indicate that the dips are being bought. That will increase the possibility of a bullish breakout and a continuation of the uptrend.
On the other hand, if the price breaks below the 20 EMA, it will indicate profit booking by short-term traders. The pair could then decline to the uptrend line. A break below this support could drag the pair to $1.60.
APT Technical Analysis
Aptos (APT) price rally is facing selling near the overhead resistance at $10.50, suggesting that bears remain active at higher levels.
Buyers will need to sustain the price above $9.50 to improve the prospects of a breakout above $10.50. If they do so, the APT/USDT pair could accelerate towards $14.50, where profit-taking could begin.
On the downside, if the price breaks below $9.50, the pair could drop to the 20-day EMA ($8.48). A strong bounce from the 20-day EMA could see another attempt to push the pair above $10.50, but a break below the 20-day EMA would signal that bears are trying to make a comeback.
The 4-hour chart shows that the bears are trying to defend the $10.50 level, but a small positive is that the bulls are not giving up much ground. This suggests that buyers expect the pair to move higher. A breakout and close above $10.50 could pave the way for a rally to $12.
Instead, if the price declines and breaks below the 20 EMA, it will indicate that the bulls have given up and are booking profits. That could send the pair down to the 50 SMA.
TAO Technical Analysis
Bittensor (TAO) has been in an uptrend for the past few days. The bears attempted to pull the price below the breakout level of $530, but the bulls held their ground.
Sellers are trying to stall the upside momentum at $680, but the possibility of a breakout increases if the bulls do not give up many opportunities. The TAO/USDT pair could then head towards the overhead resistance at $760.
While the upward sloping moving averages signal an advantage to buyers, the negative divergence on the RSI signals weakening momentum. If the price slides below the 20-day EMA ($560), the pair could drop to $489.
The 4-hour chart shows the formation of a falling wedge pattern. If the price slides below the moving average, the bears will try to pull the pair below the support line. If successful, the pair could drop to $489 and then the pattern target is $433.
Conversely, if the price rebounds from the moving average, the chances of a breakout above the resistance line increase. The failure of the bearish pattern is a bullish sign and that could initiate a rally towards $760.
WIF Technical Analysis
Dogwifhat (WIF) successfully retested the breakout level on October 10, indicating a change in the short-term trend.
The bears are attempting to stall the upside momentum at $2.89, but this level is likely to be breached. If buyers sustain the price above $2.89, the WIF/USDT pair could surge to $3.58 and eventually $4.
The key level to watch on the downside is the 20-day EMA ($2.34). A break and close below this level would be the first sign that the bulls are rushing to book profits. The pair could then drop to the 50-day SMA ($1.90).
Both moving averages are sloping up on the 4-hour chart and the RSI is in the positive zone, suggesting that bulls have the upper hand. If buyers push the price above $2.89, the pair could reach the resistance near $3.1. This level is likely to attract selling, but if bulls stay on course, the pair could regain momentum and surge to $3.58.
This bullish view will be invalidated in the near term if the price continues to decline and breaks below the 20 EMA. The pair could then drop to the channel support line.
