Bitcoin (BTC) Surges Beyond $31,000 to $32,400 Resistance, Fueling Optimism

On October 23, Bitcoin (BTC) made a surprising move, easily breaking through the resistance zone ranging from $31,000 to $32,400, catching many market participants off guard. Typically, prices tend to consolidate or exhibit hesitation when encountering significant overhead resistance levels, but this time was an exception.

Market participants are displaying a bullish sentiment as they eagerly anticipate the approval of a Bitcoin spot exchange-traded fund (ETF). Bloomberg ETF analyst Eric Balchunas, in a post on X (formerly Twitter) on October 23, suggested that the listing of BlackRock's spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) was a crucial step in the ETF's journey to market. He further indicated that this listing was a positive signal, potentially indicating imminent approval. However, a spokesperson from DTCC later clarified that the ETF's listing had been there since August and did not necessarily signify regulatory approval.

The rush to acquire Bitcoin ahead of the spot Bitcoin ETF's approval stems from analysts' expectations of a significant price surge once the green light is given. Charles Yu, a research associate at Galaxy Digital, stated in a blog post that Bitcoin's price could potentially rally by 74.1% within the first year after the launch of a US-based ETF.

Now, the question arises: Is this recent Bitcoin rally the start of a sustained upward movement, or is it time for investors to lock in profits? Additionally, how will alternative cryptocurrencies (altcoins) behave in response to Bitcoin's strength?

To answer these questions, let's analyze the price charts of the top 10 cryptocurrencies.

Bitcoin Price Analysis

On October 23, Bitcoin surged above the strong resistance barrier between $31,000 and $32,400, indicating a resumption of the uptrend. The rapid rally in recent days has pushed the relative strength index (RSI) deep into the overbought territory. In the early stages of a new bull run, the RSI often remains in the overbought zone for an extended period.

Key support levels to monitor on the downside are $32,400 and then $31,000, with buyers expected to vigorously defend this zone. If the price rebounds from this support area, the bulls will aim to drive the BTC/USDT pair to $40,000. Conversely, a drop below $31,000 could suggest that the recent breakout was a bull trap.

Ether Price Analysis

Ether (ETH) broke above the $1,746 level on October 23, signaling a potential change in trend. Although bulls attempted to extend the rally on October 24, a long wick on the candlestick indicates strong selling pressure at higher levels.

The critical support to watch on the downside is $1,746. If bulls can maintain this level during a retest, the ETH/USDT pair may climb above $1,855, potentially opening the door for a rally to $1,900 and then $2,000. However, if the price falls below $1,746, it could suggest prolonged consolidation.

BNB Price Analysis

BNB (BNB) rallied above the immediate resistance at $223 on October 23 but struggled to maintain momentum and clear the $235 hurdle. Sellers are now attempting to push the price back below $223. If successful, this could signal that the BNB/USDT pair may trade within the $203 to $235 range for an extended period.

The 20-day EMA ($215) is trending upward, and the RSI is in positive territory, indicating that bulls have an advantage. A bounce from $223 would suggest buying interest on dips, potentially paving the way for a rally above $235, with targets at $250 and $265.

XRP Price Analysis

XRP has been trading within a wide range between $0.41 and $0.56 for several months. Although bulls pushed the price above the range's resistance on October 24, a long wick on the candlestick suggests bears are guarding this level.

In range-bound markets, traders often sell near overhead resistance. If the price reaches the moving averages, it may remain within the $0.56 to $0.46 range for a while. However, if the price rises above $0.56, it could signal the beginning of a new upward trend, with potential targets at $0.66 and $0.71.

Solana Price Analysis

Solana (SOL) reached its pattern target of $32.81 on October 23, leading to profit-taking. However, the correction on October 24 was short-lived, indicating a bullish sentiment. Buyers pushed the price above $32.81 on October 25, suggesting the start of the next leg of the uptrend, with a potential target at $38.79.

The RSI remains in the overbought territory, indicating the possibility of a minor correction or consolidation in the near term. A drop below $29.50 may lead to support at $27.12, likely met with strong buying interest.

Cardano Price Analysis

Cardano (ADA) surged above the $0.28 resistance on October 24, but a long wick on the candlestick suggests selling pressure at higher levels. The ADA/USDT pair is likely to face strong resistance near the $0.28 mark. If the price falls below this level, it could indicate a rejection of the breakout and keep the pair within the $0.24 to $0.28 range for some time. However, a rebound from $0.28 and a move above $0.30 could signify bullish strength and potential targets at $0.32 and $0.38.

Dogecoin Price Analysis

Dogecoin's (DOGE) rally encountered significant selling pressure at $0.07 on October 24, as indicated by the long wick on the candlestick. The DOGE/USDT pair may enter a period of correction or consolidation, with the outcome depending on how much ground the pair gives up. If the pair holds its ground, it may break above $0.07 and target $0.08. A drop below $0.06 could shift the advantage to the bears.

Toncoin Price Analysis

Toncoin (TON) saw a decline from $2.26 on October 24, suggesting bearish defense of the $2.31 resistance. The first support level on the downside is at the moving averages. A bounce from this level would indicate positive sentiment, potentially leading to a break above $2.31 and a retest of the strong resistance at $2.59. However, if the price falls below the moving averages, it may consolidate between $1.89 and $2.31.

Chainlink Price Analysis

Chainlink (LINK) broke out of a multi-month consolidation on October 22, surpassing the $9.50 resistance. Although sellers attempted to pull the price below $9.50 on October 24, aggressive buying at lower levels is evident from the long tail on the candlestick. The LINK/USDT pair continues to move higher, with a pattern target of $13.50. If this level is surpassed, the pair may reach $15. Overbought levels on the RSI suggest a potential minor correction or consolidation.

Polygon Price Analysis

Polygon (MATIC) surged above the $0.60 resistance