Ethereum is outperforming Bitcoin in the short-term and the strength of ETH in its USD and BTC pair could be a sign that the entire altcoin market is on the verge of a larger rally.
Bitcoin (BTC) is still in a corrective phase but Ether (ETH) has attracted strong buying, which pushed it to a new all-time high on Oct. 29. The successful Altair Beacon chain upgrade seems to have boosted sentiment and it also paves way for the merge with the Ethereum mainnet and the change to proof-of-stake.
Meanwhile, MicroStrategy has continued to add to its already impressive Bitcoin stack. The company’s Q3 report shows that it added 8,957 Bitcoin, taking its haul to 114,042 Bitcoin as of Sept. 30, purchased at an average price of $27,713.
The software firm’s appetite does not seem to have been satisfied yet and CEO Michael Saylor said the company “will continue to evaluate opportunities to raise additional capital to execute” its Bitcoin strategy.
Daily cryptocurrency market performance. Source: Coin360
The bullish trend in the crypto sector seems to have increased the demand for employees with experience in crypto or blockchain. A recent report by LinkedIn editor Devin Banerjee cited data from LinkedIn’s Economic Graph team, which showed that postings for jobs that included terms such as “blockchain” or “crypto” surged 615% in August, compared to a year earlier.
Could the sharp rally in Ether be the start of a new altseason? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin dipped below the 20-day exponential moving average (EMA) ($59,389) on Oct. 27 but the bears could not sustain the lower levels. The price quickly recovered and rose above the 20-day EMA on Oct. 28, suggesting strong buying on dips.BTC/USDT daily chart. Source: TradingViewThe price action of the past few days has formed a bullish flag pattern that will complete on a break and close above the resistance line. Such a move will indicate the resumption of the uptrend. The first resistance on the upside is the all-time high at $67,000.
If bulls clear this overhead hurdle, the BTC/USDT pair could start its northward march toward the pattern target at $89,476.12.
The rising moving averages and the relative strength index (RSI) in the positive zone indicate advantage to bulls. The bears will have to pull and sustain the price below the flag to invalidate the bullish setup. In that case, the pair could slide to $52,920.
BTC/USDT daily chart. Source: TradingView
Ether sharply rebounded off the 20-day EMA ($3,953) on Oct. 28, indicating that dip buyers used the recent pullback to accumulate. The biggest altcoin rose to a new all-time high on Oct. 29, signaling the resumption of the uptrend.
ETH/USDT daily chart. Source: TradingView
The upsloping 20-day EMA and the RSI in the positive territory indicate that bulls are in command. If buyers sustain the price above $4,375, the ETH/USDT pair could start its journey toward the pattern target at $4,657 and then rally to $5,000.
Contrary to this assumption, if the price fails to sustain above $4,375, it will suggest that demand dries up at higher levels. The pair could then consolidate between $4,375 and $3,888 for a few days. A break and close below this range will suggest the start of a deeper correction.
The bulls successfully defended the neckline of the inverse head and shoulders pattern on Oct. 27, which is a positive sign. This may have prompted buying from traders, propelling Binance Coin (BNB) above the overhead resistance at $518.90.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA ($470) is sloping up and the RSI is in the positive zone, indicating that buyers are in control. If bulls sustain the price above $518.90, the BNB/USDT pair could resume its uptrend toward the pattern target at $554.
On the contrary, if the price fails to sustain above $518.90, it will suggest that traders are booking profits at higher levels. The pair could then drop to the neckline, which is an important support for the bulls to defend.
The bulls defended the strong support at $1.87 on Oct. 27 but the rebound lacks strength. This suggests that traders are hesitant to buy Cardano (ADA) at higher levels.
ADA/USDT daily chart. Source: TradingView
Both moving averages are sloping down and the RSI is in the negative zone, indicating that the path of least resistance is to the downside.
If the price turns down from the current level or from the 20-day EMA ($2.12), the bears will again try to break and close the ADA/USDT pair below the $1.87 support. Such a move could signal the start of a deeper correction to $1.58.
This negative view will invalidate if bulls push and sustain the price above the moving averages. The pair could then rally to $2.47.
Solana (SOL) bounced off the 20-day EMA ($180) on Oct. 27, indicating that the sentiment remains positive and traders are buying on dips. The bulls will now try to thrust the price above the overhead resistance zone at $216 to $218.93.