Bitcoin (BTC) skyrocketed to more than $ 1 trillion in market capitalization on October 6, bringing the total cryptocurrency market capitalization closer to $ 2.3 trillion. This amount coincides with a 100 percent recovery from the all-time low on June 22, when the total cryptocurrency market capitalization fell to around $ 1.15 trillion.
According to Chainalysis, the Central and South Asia and Oceania region saw a 706 percent increase in crypto transactions between July 2020 and June 2021. The total value of the transaction was $ 572.5 billion, equivalent to 14 percent of the global value of the transaction.
So can Bitcoin gain more momentum and hit an all-time high? Or will interest in altcoins increase? Cointelegraph analyst Rakesh Upadhyay attempted to answer these questions by examining the top 3 cryptocurrencies by market capitalization.
BTC / USDT – Bitcoin technical analysis
Bitcoin price broke resistance on October 4 and closed above $ 48,843.20, the first sign of the end of the correction process. This uptrend continued on October 5-6, then stalled when the bears intervened.
BTC / USDT daily chart. Source: TradingView
With the bulls pushing the price above $ 52,920, the head-to-shoulder pattern indicating a bearish possibility was also invalidated. Meanwhile, the 20-day exponential moving average (EMA) ($ 47,708) rose and the Relative Strength Index (RSI) settled near the overbought zone. So bulls dominated the market.
If the price stays above $ 52,920 any longer, the BTC / USDT pair could gain momentum and climb to $ 60,000. This level will act as a resistance, but if it is exceeded, the pair will test the all-time high of $ 64,854 once again.
Contrary to this assumption, if the price does not stay above $ 52,920, it will appear that the demand has decreased at the highs. The pair could see a correction to $ 48,843.20 later.
ETH / USDT: Ethereum price analysis
The price of Ether (ETH) fell back below the 50-day Simple Moving Average (SMA) ($ 3,327) on October 4, after which the bulls increased buying and rallied on October 5. However, the bears tried to stop the rally on October 6 and pushed the price down for a while. As can be seen from the long tail of the day’s candle, the bulls increased buying from these levels.
ETH / USDT daily chart. Source: TradingView
The long tail of the candle on October 6 indicates an aggressive buy near the 50-day SMA. The rising 20-day EMA ($ 3,289) and the RSI in the positive zone suggest that the bulls are still in control of the market.
If buyers push the price above $ 3,676.28, ETH / USDT could rise to $ 4,027.88. The bears should push the price below the 20-day EMA to set the stage for a possible downtrend and then break the psychological support at $ 3,000.
BNB / USDT – Binance Coin Technical Analysis
Binance Coin (BNB) price rose above the resistance above $ 433 and closed there. However, the bulls were unable to continue. The bears pushed the price down below $ 433 on October 4. The positive signal here is that the bulls are aggressively buying in the downtrend as seen in the long tail of the day’s candle.
BNB / USDT daily chart. Source: TradingView
The 20-day EMA ($ 407) is rising and the RSI is in positive territory. So buyers dominate the market. If the bulls push the price above $ 444 and close, the BNB / USDT pair could rally to $ 518.90.
This level will once again act as a stiff resistance, but momentum may build if the bulls can overcome the hurdle. Contrary to this assumption, if the price falls from the current level and breaks below the 20-day EMA, the next stop could be the 100-day SMA ($ 377).
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