Bitcoin Price: What’s Going on with BTC and DOT This Week?
Bitcoin might gain momentum over $56,100, attracting investment in DOT.
Bitcoin (BTC) has remained close to the $55,000 barrier. Bitcoin price, which is targeted, has increased from 40.70% on September 12 to almost 45% today. This demonstrates that Bitcoin has primarily led the significant comeback in cryptocurrencies.
The rapid rise of Bitcoin price has simply pushed the Fear and Greed signal into the Greed area. Although this signal indicates that stock markets may have risen rapidly in a fairly short period of time, it does not always indicate a verified short-term top.
According to Cointelegraph Marke researcher Marcel Pechman, investors who traded their Bitcoin actions based only on this statistic may have lost out on significant profits prior to the fall.
Can bulls continue the rally and drive the Bitcoin price significantly closer to the all-time high? If this occurs, certain cryptocurrencies may rise higher. Let’s look at the graphs of the top two cryptocurrencies to see if they can hold their value in the short term.
Bitcoin Price: BTC/USDT
On October 6, Bitcoin price rose over the strong overhead barrier at $52,920, and the bulls have kept the price that is above the breakthrough barrier ever since. This is a strong sign since it indicates that traders may be holding on to their shares in case of higher prices soon.
The trend lines have made a bullish crossover, and the relative strength index (RSI) is approaching oversold territory, signaling that the line of low effort is to the higher. If traders push the price through $56,100, the rise may continue, and the BTC/USDT pair could reach $60,000. A retake of the all-time high at $64,854 is probable just above that level.
In contrast towards this general assumption, if bears push the price below $52,920, the pair may fall to the 20-day moving average, which is at $49,504. This is a crucial resistance level for the bulls to maintain since a fall below it may indicate a change in short-term sentiments. The pair may then fall below the 50-day basic moving average ($47,578) and possibly to $40,000 over the next several days.
The bulls are battling to sell in the $55,750 to $56,100 range, but traders haven’t yet permitted the value to go below the 20-EMA, which is a positive signal. This shows that bulls are expecting a cool down over the overhead zone. If this takes place, the pair may continue its upward momentum. A breakdown and closure below the 20-EMA will be the first signal of weakness. The RSI is showing negative split, indicating that momentum is decreasing.
If the price falls and closes below the 20-EMA, it may go to the 50-SMA. A fall below this trend line might signal the beginning about a more downturn.
POLKADOT Price: DOT/USDT
DOT has been progressively rising approaching the overhead support level of $38.77. The RSI has broken through the negative line, and the 20-day EMA, which is at $32.15, has begun to rise, signifying a trader’s advantage. If bulls push the price over $38.77, the head and shoulders formation will be broken. Breakdown of a bearish formation is a bullish sign because it could trap strong bears who then attempt to cover their holdings, resulting in a short pressure.
The DOT/USDT pair may then begin its rise to $49.78. However, if the price falls underneath the moving averages and breaks well below current price or overhead support, the pair may fall to $28.60. A retake of this support line might hold the pair price bracket for another few days. To prove their supremacy, the bears must bring down the price below the neckline.
Both moving averages are rising upward, and the RSI is in growth mode, showing that traders are in control. The pair might fall to the 20-EMA, which will almost certainly act as a real support. If the price rises from this level of support, the bulls will start to push the pair to $38.77. This level could act as a strong barrier yet again, however if bulls do not lose hope much ground from this, the probability of a break over it rises.
If bears push prices just below the 20-EMA, the pair may fall to the 50-SMA. A decline and close just below that support level might lead to a drop to $31 and then $29.