Bitcoin’s recovery trajectory appears robust, fueled by a notable demand for spot Bitcoin exchange-traded funds (ETFs). On Friday, Bitcoin reached a price of $116,495, propelling a relief rally that was underpinned by substantial inflows into these ETFs, amounting to $1.7 billion this week, as reported by SoSoValue. This bullish sentiment has sparked optimism among traders, especially with crypto analyst Matthew Hyland indicating that the current Bollinger Bands are displaying an extreme level of tightness on the monthly timeframe. Analyst Crypto Ceasar echoed this sentiment on social media platform X, suggesting that such tightness historically precedes significant price movements and that the fourth quarter could bring considerable volatility for Bitcoin.
However, the bullish outlook is not universally held. Analyst JA Maartun from CryptoQuant cautioned that 8 out of 10 indicators on the CryptoQuant Bull Score Index are signaling bearish momentum for Bitcoin in the near term.
In terms of critical price levels, Bitcoin has successfully broken above its $113,500 resistance and moved beyond the 50-day simple moving average (SMA) of $114,544. However, the next resistance stands at $117,500, with potential upside targets near $120,000 and $124,474 should this level be breached. Conversely, a drop below the 20-day exponential moving average (EMA) of $112,622 could weaken this bullish momentum, potentially leading the price down to $107,000.
Ether (ETH) has also demonstrated upward movement, breaking free from a narrow trading range. The bulls are now eyeing the $4,957 level, where significant selling pressure may emerge from bears. A rebound from the support level of $4,500 could pave the way for a surge to $5,500. However, should prices tumble below $4,250, this would suggest bearish dominance.
The altcoin landscape is showcasing a strong performance as well, with notable gains from BNB, HYPE, and SOL. BNB reached a new all-time high, with expectations for a rally toward the $1,000 psychological level, although sellers are likely to defend this price point aggressively. If the BNB price holds above $900, the path could lead toward $1,090.
Solana (SOL) gained traction after surpassing the $218 resistance level, with aspirations of reaching $260. However, sellers within this range may prompt a pullback, which the bulls will need to staunch at the 20-day EMA of $209 to maintain upward momentum.
Further developments are seen in XRP, where bulls encountered resistance as they attempted to maintain the price above a key downtrend line. If XRP fails to hold above the 20-day EMA of $2.93, it might face a decline toward $2.73. Conversely, breaking above $3.15 could ignite a rally to $3.40.
Amidst these movements, Dogecoin (DOGE) is making an effort to remain above the $0.26 resistance, with an aim to hit $0.29. If it surpasses this critical level, a potential uptrend toward $0.44 could unfold.
Cardano (ADA) managed to close above its downtrend line, but sellers are likely to challenge this trend. A close below the moving averages could signal trouble for bullish sentiment.
Chainlink (LINK) has managed to transact above the $24 mark, indicating recovery efforts from bulls, but the 20-day EMA remains critical for maintaining upward momentum.
Hyperliquid (HYPE) is on the rise, recently breaking above its own resistance and reflected a strong demand from buyers, although the risk of a pullback exists if the price cannot maintain its breakout momentum.
Finally, Sui (SUI) is approaching a downtrend line where sellers are expected to put up considerable resistance. Should the price bounce back from the 20-day EMA ($3.48), this could facilitate a breakout above the downtrend line, invalidating bearish setups.
As the market continues to evolve, investors are advised to stay vigilant and conduct thorough research, as the inherent risks associated with cryptocurrency remain prevalent.
