Bitcoin Spot Volume Plunges, but Upside Breakout Possible
The drop in spot volumes for Bitcoin (BTC) on Coinbase in Q3 2023 compared to the previous year could be due to the asset’s prolonged consolidation. However, this consolidation period may lead to an explosive price action in the future. While it is difficult to predict the direction of the breakout, the fact that Bitcoin has remained above $25,000 suggests a higher chance of an upside breakout.
Paul Tudor Jones Bullish on Gold and Bitcoin Amidst Risk-Off Sentiment
Investing legend Paul Tudor Jones believes that an escalation in the Israel-Hamas conflict could bring about a risk-off sentiment in equities markets. In such a scenario, Jones expects both gold and Bitcoin to benefit.
Bitcoin Price Analysis
Bitcoin price sliced through the 20-day exponential moving average ($27,148) but found support at the 50-day simple moving average ($26,634). The bulls defended this level successfully on multiple occasions. A rally above the 20-day EMA would indicate strength and may lead to a climb towards stiff overhead resistance at $28,143.
Ether Price Analysis
Ether (ETH) dipped to a critical support level at $1,531 but found buying pressure. The RSI is showing signs of a positive divergence, suggesting a weakening bearish momentum. If bulls can push the price above the moving averages, it may climb towards resistance levels at $1,746.
BNB Price Analysis
BNB (BNB) fell to a strong support level at $203 but showed bullish defense with a long tail on the candlestick. Bulls need to push the price above moving averages and the downtrend line to indicate a weakening bearish grip. If successful, an up-move towards $235 and $250 is possible.
XRP Price Analysis
XRP (XRP) fell below an uptrend line, indicating reduced bullish pressure. The price is expected to oscillate between $0.41 and $0.56. If the support at $0.46 is broken, a dip to $0.41 is likely, but aggressive buying by bulls may keep the range-bound action intact.
Solana Price Analysis
Solana (SOL) slipped below the 20-day EMA ($21.72), suggesting continued bearish pressure. A break below the 50-day SMA ($20.44) could lead to a slump towards $17.33. However, a rise above $22.50 would favor buyers and may lead to an upswing towards the neckline of an inverse head and shoulders pattern.
Cardano Price Analysis
Cardano (ADA) has formed long tails on candlesticks but failed to initiate a recovery, indicating a lack of demand at higher levels. The ADA/USDT pair is near a support level at $0.24, with signs of a positive divergence in the RSI. If this support holds, a relief rally towards moving averages and levels at $0.27 and $0.28 may occur.
Dogecoin Price Analysis
Dogecoin (DOGE) has been trading below the $0.06 support level since October 9, suggesting acceptance of lower levels by the market. Bears will attempt to push the price towards strong buying support at $0.055, leading to consolidation between $0.055 and $0.06 in the short term.
Toncoin Price Analysis
Toncoin (TON) has been in a corrective phase, with profit booking leading to a drop below the 50-day SMA ($1.98). Bulls need to reclaim this level and push the price above moving averages to indicate a possible rise to $2.31. Otherwise, a turn down from moving averages may suggest negative sentiment and increase the risk of a fall to $1.60.
Polkadot Price Analysis
Polkadot (DOT) reached its target support level at $3.50 and may see further decline if it turns down from the 20-day EMA ($3.95). However, a sustained rise above the 20-day EMA could indicate rejection of lower levels and trap aggressive bears, potentially leading to a short squeeze.
Hot Take: Bitcoin Consolidation May Lead to Explosive Breakout
Bitcoin’s prolonged consolidation period could be a precursor to an explosive price action in the future. While it is challenging to predict the direction of the breakout, the lack of significant dips below $25,000 increases the likelihood of an upside breakout. Traders should remain watchful as long consolidations are often followed by sharp movements. Additionally, Paul Tudor Jones’ bullish stance on gold and Bitcoin amidst potential risk-off sentiment adds further weight to the positive outlook for cryptocurrencies.
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