The S&P 500 Index nudged higher by 0.45% to record its second positive week. While the United States equities markets were a slow mover, gold witnessed a massive run-up of more than 5% this week. Its rally of 3.11% on Oct. 13 was its best one-day performance since Dec. 1 of last year. However, the Bitcoin (BTC) bulls did not have any such luck as Bitcoin is on track to end the week down more than 3%.
Bitcoin’s weakness and the regulatory overhang have kept crypto investors away from altcoins. That has kept Bitcoin’s market dominance hovering near the 50% mark for the past few days.
Market observers are likely to keep their focus on Bitcoin for the next few days. The longer the bulls sustain the price above $25,000, the greater the possibility that the next move is likely to be higher. A bullish move in Bitcoin is likely to spur buying in select altcoins as crypto investors will then sense a bull market.
Select cryptocurrencies are showing signs of forming a base. If they breakout to the upside, a new up-move may start. Let’s study the charts of the top-5 cryptocurrencies that could outperform in the near term.
Bitcoin price analysis
Bitcoin has been trading between the moving averages for the past few days, indicating indecision between the bulls and the bears about the next directional move.
Usually, a tight consolidation is followed by a range expansion. In this case, if buyers kick the price above the 20-day exponential moving average ($27,110), the BTC/USDT pair could rise to $28,143. The bears are expected to mount a strong defense at this level.
Alternatively, if the price turns down and dives below the 50-day simple moving average ($26,671), it will signal that bears have asserted their supremacy. The pair may first drop to $25,990 and thereafter to the pivotal support at $24,800. This level is likely to attract aggressive buying by the bulls.
The pair’s recovery is facing selling at the 20-EMA on the 4-hour chart but a positive sign is that the bulls have not given up much ground. This suggests that the buyers are not rushing to the exit and are keeping up the pressure.
If the 20-EMA is taken out, the pair could first rise to the 50-SMA. This level may act as a minor barrier but if overcome, the pair could climb to $27,750 and then to $28,143.
On the contrary, if the bulls fail to pierce the 20-EMA, the sellers will sense an opportunity to pull the price lower. A dump below $26,500 could sink the pair to $26,000 and then to $24,800.
Solana price analysis
Solana (SOL) has been witnessing a tough battle between the bulls and the bears near the 20-day EMA ($21.77). This suggests that the bulls are trying to flip this level into support.
There is a minor resistance at $22.50 but if this level is crossed, the SOL/USDT pair could rise to the neckline of the inverse head and shoulders pattern. A break and close above this resistance will complete the bullish setup. Buyers may face a stiff resistance at $27.12 but if this hurdle is cleared, the pair could surge to the target objective at $32.81.
This positive view will be negated in the near term if the price turns down and plunges below the 50-day SMA ($20.50). That could start a descent toward $18.58 and then to $15.33.
After trading between the moving averages for some time, the price resolved to the downside with a break below the 20-EMA. This indicates that the bears may remain in control. The pair could first fall to $20.93 and if this level also cracks, the pair may collapse to $20.
Conversely, if the price fails to sustain below the 20-EMA, it will suggest solid buying at lower levels. The first sign of strength will be a break and close above the 50-SMA. That could open the doors for a rally to $23.50 and then to the neckline of the inverse H&S pattern.
Lido DAO price analysis
Lido DAO (LDO) has been trading near the moving averages for the past few days, indicating that the bears may be losing their grip.
The moving averages have flattened out and the RSI has jumped into the positive territory, indicating that the bulls are attempting a comeback. The immediate resistance on the upside is $1.73. If this level is scaled, the LDO/USDT pair could climb to the downtrend line. This level is again likely to witness a tough battle between the bulls and the bears.
Contrarily, if the price turns down and skids below the moving averages, it will suggest that the bears are in command and are selling on every minor rally. The pair may then retest the vital support at $1.38.
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