Bitcoin has been trading in a narrow range for the past few days, showing no clear direction. However, some altcoins have been showing signs of strength and could outperform Bitcoin if it breaks out of the consolidation.
Bitcoin awaits a decisive move
Bitcoin (BTC) has been stuck between the 20-day exponential moving average ($27,110) and the 50-day simple moving average ($26,671) for the past few days. This indicates a balance between buyers and sellers and a lack of momentum in either direction.
However, this situation is unlikely to last for long as a tight consolidation is usually followed by a range expansion. If the bulls push the price above the 20-day EMA, the BTC/USDT pair could rally to $28,143, which is a stiff resistance. A breakout and close above this level could signal the start of a new uptrend.
On the other hand, if the bears sink the price below the 50-day SMA, it could indicate that they have gained the upper hand. The pair could then drop to $25,990 and then to $24,800, which is a critical support. A breakdown and close below this level could confirm a bearish trend reversal.
Solana shows bullish signs
Solana (SOL) has been trading near the 20-day EMA ($21.77) for the past few days, indicating that the bulls are trying to defend this level. The moving averages are on the verge of a bullish crossover and the relative strength index (RSI) is in the positive territory, suggesting that buyers have a slight edge.
If the bulls can propel the price above $22.50, the SOL/USDT pair could start a new uptrend that may reach $25 and then $28. This positive view will invalidate if the price turns down and breaks below $20. Such a move could drag the pair to $18 and then to $15.
Lido DAO Token eyes recovery
Lido DAO Token (LDO) has been in a downtrend since hitting an all-time high at $8.85 on Sept. 9. The price plunged to $2.86 on Oct. 4, losing about 67% of its value in less than a month. However, since then, the price has been consolidating near the lows, indicating that selling pressure has eased.
The 20-day EMA ($3.35) is acting as a resistance but the RSI has formed a positive divergence, suggesting that the bearish momentum is weakening. If the bulls can push and sustain the price above the 20-day EMA, it could signal a possible trend change.
The first target on the upside is $4 and then $4.50. Contrary to this assumption, if the price turns down from the 20-day EMA, it will indicate that bears are still in control. A break below $2.86 could resume the downtrend.
Internet Computer attempts a bounce
Internet Computer (ICP) has been trading below both moving averages since Sept. 7, indicating a strong bearish trend. The price dropped to an intraday low at $2.86 on Oct. 4 but rebounded sharply from there, forming a hammer candlestick pattern.
This suggests that bulls are attempting to make a comeback. The RSI has also formed a positive divergence, indicating that selling pressure is reducing. The ICP/USDT pair could next reach the overhead resistance at $3.35.
A break and close above this level will signal a potential trend change. The first target on the upside is $4 and then $4.50. Contrary to this assumption, if the price turns down from $3.35, it will suggest that the pair may extend its stay inside the range for some more time.
A slide below $2.86 will indicate the resumption of the downtrend.
VeChain breaks out of downtrend line
VeChain (VET) has been trading below a descending trendline since Sept. 6, indicating lower highs and lower lows formation. However, on Oct. 13, the bulls pushed the price above the trendline and both moving averages.
This shows that buyers are back in action and are trying to reverse the downtrend. The VET/USDT pair could now rally to $0.12 and then to $0.13. The moving averages have completed a bullish crossover and the RSI is in the overbought zone, indicating that the bulls have the upper hand.
However, if the price turns down from the current level or the overhead resistance, it will suggest that bears have not given up yet. They will try to pull the price back below the moving averages. If they succeed, it will indicate that the breakout was a bear trap.
