Bitcoin price rally above $70K could supercharge ETH, SOL, DOGE and SHIB

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.

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.

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).

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 and breaks above $69,000, it will indicate that the sentiment remains positive, and the bulls are buying on dips. The pair may reach $70,000 and subsequently $72,000.

Ether price analysis

Ether (ETH) broke out of the symmetrical triangle pattern on Oct. 20, indicating that the bulls have overpowered the bears.

The ETH/USDT pair could rise to $2,850, which may again act as a solid resistance. If the price turns down from $2,850 but rebounds off the breakout level from the triangle, it will signal a change in sentiment from selling on rallies to buying on dips. The bulls will then again attempt to kick the price above $2,850. If they succeed, the pair may rally toward $3,400.

This optimistic view will be negated in the near term if the price turns down sharply and breaks below the 20-day EMA ($2,553). That may keep the pair inside the triangle for a few more days.

The price squeeze near the resistance line resolved with an upside breakout, signaling that the bulls are in command. Buyers will try to push the pair to $2,850, where the bears are expected to pose a strong challenge. 

The moving averages are the crucial support to watch on the downside. A break and close below the moving averages suggest that the bullish momentum is weakening. The pair may drop to $2,550 and then to $2,450.

Solana price analysis

Solana (SOL) is nearing the overhead resistance of $164, which is an important level for the bears to defend.

If they fail in their endeavor, the SOL/USDT pair will complete a bullish ascending triangle pattern on a close above $164. That will clear the path for a possible rally to $189 and thereafter to $210.

If the price turns down from $164 but finds support at the 20-day EMA ($150), it will signal that bulls continue to buy on dips. The buyers will then make one more attempt to thrust the pair above $164. The bullish setup will be invalidated on a break and close below the uptrend line.

Both moving averages are sloping up on the 4-hour chart, and the RSI is near the overbought zone, indicating that the bulls have the upper hand. However, the bulls are expected to face significant resistance at $164. On the way down, if buyers do not allow the price to slip below the 50-SMA, the likelihood of a break above $164 increases.

Alternatively, if the price turns down sharply and breaks below the moving averages, it will suggest that the bulls have given up. The pair may drop to $148 and then to $144. 

Related: 3 signs Bitcoin’s ‘parabolic phase’ with a $250K target is about to begin

Dogecoin price analysis

Dogecoin (DOGE) broke out of the symmetrical triangle pattern on Oct. 18, indicating the start of a new uptrend.

The up move is facing selling near the $0.15 overhead resistance, which could result in a retest of the breakout level from the triangle. If the price rebounds off the breakout level, it will suggest that the bulls have flipped the level into support. That will improve the prospects of a rally to $0.18.

On the contrary, a break and close below the 20-day EMA ($0.12) will signal that the markets have rejected the breakout. That could pull the DOGE/USDT pair down to the triangle’s support line.

The pair has maintained above the 20-EMA on the 4-hour chart, indicating that the bulls are not hurrying to book profits as they anticipate another leg higher. If buyers push the price above $0.15, the pair could surge to $0.18.

If bears want to make a comeback, they will have to tug the price below the 20-EMA. That could start a down move toward the breakout level near $0.13. A break and close below this level will tilt the advantage in favor of the bears.

Shiba Inu price analysis

Shiba Inu (SHIB) has formed an inverse head-and-shoulders pattern, which will complete on a break and close above $0.000020.

The upsloping moving averages and the RSI near 60 increase the possibility of a breakout. If that happens, the SHIB/USDT pair is likely to pick up momentum and rally toward the target objective of $0.000028.

Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA ($0.000018), it will suggest that the bulls have given up in the near term. The pair could sink to the 50-day SMA ($0.000016), remaining inside the $0.000012 to $0.000020 range for a while.

The pair has been gradually rising inside an ascending channel pattern. The uptrend line is the crucial support to watch out for, as a break and close below it will signal advantage to the bears.

If the price rises from the current level, it will suggest buying on dips. The bulls will try to push the pair to the resistance line, where the bears are likely to step in. A break and close above the channel will indicate that the bulls have seized control. The pair may then rise to $0.000022.