Bitcoin (BTC) continues to face a strong sell-off as the bulls attempt to breach the $60,000 psychological support level. Some analysts believe that bitcoin may be vulnerable to a correction as traders reported gains after the successful launch of the bitcoin trading fund last week.

Earlier, the launch of bitcoin futures on the Chicago Mercantile Exchange on December 18, 2017, led to strong bullish gains and marked the start of a multi-year bear market. A similar collapse of minor magnitude was seen following the Coinbase IPO (COIN) on April 4, 2021. This suggests that the old adage of “buy by ear, sell news” may be repeated.

Daily view of cryptocurrency market data. Source: Coin360
However, some analysts are not worried about this rejection. Cryptocurrency analyst firm Decentrader said that “there is not a single instance where bitcoin has broken significant previous records and could not continue to grow.” They expect Bitcoin’s bullish run to continue with a potential target of $72,000 and then $88,000.

This does not mean that all accounts are now optimistic. Bybt data shows that Bitcoin reserves on Binance have risen to 400,000 BTC, which indicates that traders can monitor the closing of their positions.

Could Bitcoin make a strong comeback that will boost sentiment in the crypto sector? Let’s analyze the charts of the top 5 digital currencies that may remain in the spotlight in the next few days.

BTC / USDT
Bitcoin faced a strong drop in the $64,854 region to $67,000. The price could drop to the 20-day EMA ($58,315), which is a key level to watch. If the price bounces violently from this level, this indicates that sentiment is still positive and that traders are buying on the dip.

BTC/USDT daily chart. Source: TradingView
Then the bulls make another attempt to push the price out of the upper zone. If they manage to remove it, the BTC/USDT pair can continue its trend. The pair could then rise to its target of $84,533.12.

The rising moving averages and the relative strength index (RSI) in positive territory indicates that buyers have an advantage.

Contrary to this assumption, if the price moves lower and breaks above the 20-day EMA, it can be assumed that a break above $64,854 could be an upside trap. The pair then managed to continue moving towards the 50-day simple moving average ($50,927).

4 hour BTC/USDT chart. Source: TradingView
The pair is correcting inside the descending channel. The immediate support is at $58.739.17, and in case this level is broken, the pair may retreat towards the channel’s target. This is an important level to protect the bulls, as a break below it may boost selling.

The 20-EMA has fallen and the RSI has fallen into negative territory, indicating that the bears are gaining the upper hand. This negative outlook becomes invalid if the price breaks the channel and the moving averages. Such a move will increase the likelihood of a new test of the upper region.

SOL / USDT
Solana long candle (SOL) week on October 22 indicates that the bears are aggressively defending the upper resistance at 216. Altcoin formed a candlestick pattern during the day of October 23, indicating indecision among the bulls and the bears.

SOL/USDT daily chart. Source: TradingView
This uncertainty has been resolved once again today and the price could go down to the breakout level of $177.79. If the price drops from this level, it indicates that the sentiment is still bullish and that traders are buying on the dip.

The bulls will then try to push the price above $216 again. If successful, SOL/USDT could rise to $239.83. The slightly higher 20-day EMA ($168) and the RSI are in positive territory pointing to the benefits for buyers.

This positive outlook will disappear if the price continues lower and falls below the 20 day moving average. The price can pull down to the trend line in the triangle.

SOL/USDT 4-hour chart. Source: TradingView
Bears pushed the price below the 20-EMA on the 4 hour chart. If sellers hold the price below the 20-EMA, this indicates weak bullish momentum. Next, the pair may drop to $177.79 where buying could emerge.

The first sign of strength will be a breakout and a close above the downtrend line. This movement assumes that traders are buying on the dip. This might push the price towards $205.78, and if this resistance is overcome, the pair may rise to its highest level.

AVAX / USDT
Avalanche (AVAX) broke and closed above the descending channel on October 21, indicating that the correction may be over. Now the bulls will try to resume the trend.

Source: CoinTelegraph

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