Bitcoin and its Impact on Other Cryptocurrencies
Bitcoin is one of the most if not the most popular cryptocurrencies in the world, so people are closely monitoring its price. Interestingly, Bitcoin continued to trade near the $55,000 level. The sharp rally in the world’s largest cryptocurrency pushed its market from 40.70% on September 12 to about 45% as of October 10. The data mentioned above shows that the recovery has largely been led by Bitcoin.
This sharp run in BTC pushed the Fear and Greed indicator into the Greed zone. Even though the Fear and Greed indicator suggests that markets may have run up quickly in a short time, it doesn’t necessarily signal a confirmed short-term top.
The BTC jumped above the stiff overhead resistance at $52,920 last week more on October 6. The bulls held the price of Bitcoin above the breakout level since then. This is an important factor as it indicates that buyers may be holding on to their positions expecting higher levels in the short term.
Besides, the moving averages completed a bullish crossover, and the relative strength index (RSI) is near the overbought zone. The relative strength index position indicates that the path of least resistance is to the upside.
If buyers push the price of Bitcoin above $56,100, the uptrend could resume and the BTC/USDT pair may rally to $60,000. Above $60,000, a retest of the all-time high at $64,854 is possible.
On the contrary, if bears pull the price below $52,920, the BTC/USDT pair could drop to the 20-day exponential moving average ($49,504). Buyers and others should not forget that this is an important support for bulls. A break below could indicate a change in the short-term sentiment. The BTC/USDT pair could then decline to the 50-day simple moving average ($47,578) and next to $40,000.
Bitcoin is the largest cryptocurrency, but there are other interesting cryptocurrencies as well, and one of them is Polkadot. It is gradually moving higher toward the overhead resistance at $38.77. The RSI has broken out of the downslide line and the 20-day EMA ($32.15) started to turn up, indicating an advantage to buyers.
If bulls thrust the price of Polkadot above $38,77, it will invalidate the head and shoulders pattern. Importantly, the failure of a bearish setup is a bullish sign. As it may trap the aggressive bears who then try to cover their positions, resulting in a short-squeeze. Hence, the DOT/USDT pair could then start its journey toward $49,78. We should not forget another scenario as well. If its price turns down from the current level or the overhead resistance and breaks below the moving averages. In that case, the pair could drop to $28.60.
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