On October 6, Bitcoin (BTC) surpassed the market capitalization by $1 trillion, bringing the total value of the cryptocurrency market to nearly $2.3 trillion. This means a full 100% recovery from its lows on June 22nd, when the total market capitalization of the cryptocurrency fell to around $1.15 trillion.
According to Chainalysis, the number of cryptocurrency transactions increased by 706% in Central and South Asia and Oceania between July 2020 and June 2021. The total deal value was $572.5 billion, or 14% of the global deal value.
Daily cryptocurrency market indicators. Source: Coin360
BofA Securities, a subsidiary of Bank of America Corporation (BoA), released a report on October 4 assessing the long-term bullish picture for cryptocurrencies. The report estimates that about 221 million users will trade cryptocurrency or use a blockchain application in June 2021, far more than 66 million users in May 2020.
The BofA report says the crypto sector is “too big to ignore” and contains “much more” than just Bitcoin.
Can Bitcoin Rise and Challenge an All-Time High? Will this increase interest in alternative currencies? Let’s check out the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin collapsed and closed above $48,843.20 on October 4, which was the first sign that the correction is over. This could have attracted short coverage of the bears, leading to a rally on October 5 and 6.
BTC/USDT daily chart. Source: TradingView
The bulls put the price above $52920, invalidating the Head and Shoulders (H&S) pattern. The 20-day exponential moving average ($46,947) and the relative strength index (RSI) appeared close to the overbought territory, indicating that the bulls are in control.
If the bulls hold above $52,920, the BTC/USDT pair could gain speed and build up to $60,000. This level may act as resistance, but if it is exceeded, the pair could challenge the all-time high at $64,854.
Contrary to this assumption, if the price does not exceed $52,920, this means that demand at higher levels is declining. The pair could then correct to $48843.20.
ETH / USDT
Ether (ETH) jumped above the 50-day single moving average (SMA) ($3,317) on Oct 4, and the bulls continued their recovery on Oct 5. However, on October 6, the Bears attempted to stop the event and withdrew the 50-day SMA award.
ETH/USDT daily chart. Source: TradingView
The long tail of today’s candle shows strong buying around the 50 day moving average. The bullish 20-day exponential moving average ($3262.50) and the RSI are in positive territory, indicating that everything is under the control of the bulls.
If buyers push the price above $3676.28, ETH/USDT could rise to $4,027.88. Bears need to pull back and hold the price below the 20-day moving average to open the gate for a possible drop to $3000 and then to the 100-day simple moving average ($2871).
BNB / USDT
Binance Coin (BNB) collapsed and closed, breaking air resistance at $433, but the bulls failed to develop that strength. On Oct 6, the bears pushed the price below $433, but on a positive sign, the bulls were buying aggressively on deflation, as seen in the long tail of today’s candle.
BNB/USDT daily chart. Source: TradingView
The 20-day moving average ($404) is sloping and the RSI is in positive territory, indicating a buyer advantage. If the bulls push the price and settle above $444, the BNB/USDT pair could rise to $518.90.
This level, in turn, can act as heavy resistance, but if the bulls manage to overcome the obstacle, the momentum can increase. Contrary to this assumption, if the price drops below today’s level and breaks above the 20-day moving average, the next stop might be the 100-day simple moving average ($377).
ADA / USDT
In recent days, the bulls were unable to overcome the 20-day EMA ($2.25), which indicates a higher sell-off. The long tail of today’s candle indicates that the bulls are accumulating Cardano (ADA) at lower levels.
ADA/USDT daily chart. Source: TradingView
The 20-day moving average and the RSI are flattening just below the midpoint, indicating a balance between supply and demand. If the bulls push the price above the 20-day moving average, the ADA/USDT pair could rise to $2.47.
Alternatively, if the price drops from the 20-day moving average again, the bears will attempt to push the pair down to $1.94. The break and close through this support could pave the way for a further decline to $1.60.