Bitcoin (BTC) has risen roughly 9% this week, indicating solid buying by the bulls. The up move is facing resistance near $69,000 but the bulls are not exiting their positions in a hurry. That suggests the buyers anticipate the rally to extend further.
Trading firm QCP Capital told its Telegram channel subscribers that the rising United States equities markets and a weakening trend in the Japanese yen are likely to boost risk-on sentiment leading to the US elections. That “will propel risk assets higher and support our Uptober narrative,” the firm added.
Crypto market data daily view. Source: Coin360
The United States Securities and Exchange Commission’s approval for listing options for Bitcoin exchange-traded funds by the New York Stock Exchange and the Chicago Board Options Exchange is another positive for Bitcoin. Analysts believe the introduction of options will boost liquidity in the Bitcoin markets.
Bitcoin’s strength has attracted buying in the major altcoins, which are showing signs of breaking out. Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin is facing resistance as it nears the psychological resistance of $70,000, but a positive sign is that the bulls have not given up much ground.
BTC/USDT daily chart. Source: TradingView
The upsloping 20-day exponential moving average ($65,010) and the relative strength index (RSI) near the overbought zone suggest that the bulls have the edge. If buyers drive the price above $70,000, the next stop could be $72,000. The bears are expected to fiercely defend the zone between $70,000 and $73,777.
If bears want to make a comeback, they will have to swiftly pull the price below $66,500 and then the 20-day EMA. If they do that, the BTC/USDT pair may plummet to the 50-day simple moving average ($61,749).
BTC/USDT 4-hour chart. Source: TradingView
The RSI on the 4-hour chart shows a negative divergence, indicating that the bullish momentum is weakening. A break and close below the 20-EMA will signal profit booking by short-term traders. The pair may then drop to the 50-SMA.
Contrarily, if the price continues higher…
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