The rise in Bitcoin (BTC) over $ 50,000 seems to have received support from institutional buyers who want to hedge their portfolio against rising inflation, JPMorgan said in a statement from October 7 to its customers. Bank analysts have suggested that institutional investors prefer Bitcoin. gold as the best defense against inflation.
A recent study entitled Cryptocurrencies and the Sharpe Ratio for Traditional Investment Models by cryptoasset managers Iconic Funds and Cryptology Asset Group showed that adding cryptocurrency to any portfolio improves the return and risk-reward ratio of a portfolio.
Market indicators for daily cryptocurrency. Source: Coin360
Mike McGlone, chief product strategist at Bloomberg, said in the Bloomberg Galaxy Crypto Index in October 2021 that $ 50,000 for bitcoin could serve as a strong support during the downturn in the fourth quarter.
Can the latest rally in Bitcoin and Altcoins attract profitable traders, or is this the start of a long-term trend? Let’s examine the charts of the 10 best cryptocurrencies to find out.
BTC / USDT
Bitcoin made a profit on October 7, but the Bears failed to push the price below the breakout level of $ 52,920, which is a positive sign. The bulls tried to resume the movement upwards on October 8, but the long week in the light of day indicates sales at higher levels.
BTC / USDT daily chart. Source: TradingView
The initial support for the downside is $ 52,920, but if the bears pull the price below that level, the BTC / USDT could fall to the psychological $ 50,000 level and then to the 20-day exponential moving average (EMA). ) ($ 48,285).
The bullish 20-day EMA and RSI near the overbought zone indicate an advantage for buyers. If the price bounces off the 20-day EMA, the bulls will try to resume the trend again.
A break and closure over $ 56,100 could push the pair toward $ 60,000, where bears could face severe resistance. This positive view will be void if the price falls below the 50-day single moving average (SMA) ($ 47,342). The pair was able to test support for the 100-day simple moving average ($ 42,691).
ETH / USDT
Ether (ETH) jumped over immediate resistance at $ 3,676.28 today, but bulls may find it difficult to keep the price above that level. The RSI is next to a downtrend line that can act as resistance.
ETH / USDT daily chart. Source: TradingView
If the price falls below the current level, the initial support will be on the 20-day moving average ($ 3,324). A strong setback from this level will indicate that the mood is still positive and traders are buying in times of recession.
This will increase the likelihood of an increase to strong resistance of $ 4,027.88. Conversely, if the price falls below the 20-day moving average, the ETH / USDT may fall to the 100-day single moving average ($ 2899).
BNB / USDT
The bulls are struggling to keep Binance Coin (BNB) above $ 433, indicating that demand is falling at higher levels. The price fell below $ 433 on October 8, and the Bears will now try to push the price below the 20-day moving average ($ 409).
BNB / USDT daily chart. Source: TradingView
If successful, the BNB / USDT pair could fall to the 100-day single moving average ($ 379). Such a move could increase the likelihood that the couple will stay within a certain range of $ 320 to $ 450 over the next few days.
On the other hand, if the price bounces off the 20-day moving average, it will indicate that the mood is still positive and traders are buying downturns. The bulls will then make another attempt to remove the upper barrier of $ 450 and gather north to $ 518.90.
ADA / USDT
After several unsuccessful attempts in recent days, the bulls managed to push and close Cardano (ADA) above the 20-day moving average ($ 2.25) on October 7. However, the long wick on today’s candlestick showed that the bears are active to higher levels.
Daily ADA / USDT chart. Source: TradingView
The price effect in recent days has formed a symmetrical triangle, which indicates that bulls and bears are hesitant about the next directional movement. The 20-day moving average and the 50-day single moving average ($ 2.47) are flat, and the RSI is close to 50, indicating a balance between supply and demand.
This demand will tip in favor of the bulls if the price rises and breaks the triangle’s resistance line. The ADA / USDT pair can then accumulate to $ 2.47, as bears can again accumulate to severe resistance.