After two weeks of sideways consolidation, Bitcoin (BTC) breaks out to the north at the beginning of the week, following the bullish sentiment on the entire crypto market.
After investors continued to invest in altcoins in the past trading week, Bitcoin’s price jump at the beginning of the week is causing this trend to increasingly reverse. It remains to be seen whether the key crypto currency can reach a new all-time high in the near future and thus provide a fresh buy signal. The overall market is currently mostly bullish and is likely to follow the price development of Bitcoin. Thus, the bullish scenario of a year-end rally in the coming trading months is still to be preferred.
Best price development among the top 10 Altcoins: Binance Coin (BNB)
Binance Coin (BNB) has been able to recover noticeably in the last few weeks of trading. The increased enforcement of the imposed regulations also ensures a positive price development for the in-house BNB-Coin. The BNB rate is currently on the verge of reaching the all-time high of May 10 this year. Only seven percentage points are missing for the formation of a new high.
Bullish variant (BNB)
The BNB price has increased in value by almost 25 percent in the last seven trading days and could already reach a new all-time high in the coming trading days. If the BNB rate stabilizes above USD 588, it is only a matter of time before BNB can break its previous high of USD 691 and move towards its next target price at USD 822. Here you can find the first relevant price target with the 127 Fibonacci extension. A direct rise to the 138 Fibonacci extension at USD 875 would also be conceivable. Only when this resistance is broken at the daily closing price will the medium-term target area at USD 988 be activated. With the 161 Fibonacci extension, the first strong resistance area can be found just below the psychological USD 1,000 mark.
After the significant price increase in the last few weeks of trading, increased profit-taking is to be planned here. If investors succeed in stabilizing the BNB rate above this resistance level in the medium term, an increase to the 200 Fibonacci extension at USD 1,171 is also conceivable. One of the reasons for the increased demand for BNB can be seen in the increased coin launches via the Binance Launchpad. In order to participate in these Initial Exchange Offerings (IEO) on Binance.com, investors need BNB’s. In addition to the regular coin burns, this is another aspect why fewer and fewer Binance Coins can be traded on the exchange. If this tendency persists in the coming trading months, the BNB rate should even rise towards USD 1,467 in the long term. Here you can find the maximum bullish price target with the 261 Fibonacci extension.
Bearish variant (BNB)
The bears have shone with abstinence for the last few weeks of trading. After the BNB rate broke through the green resistance area between USD 480 and USD 508 on a sustained basis, the seller seems to have run out of courage to strike back. A first sign of life can be seen in a relapse below the 78 Fibonacci retracement at USD 589. A break in this support increases the likelihood of a consolidation back towards USD 540. Two relevant supports can be found here with the EMA20 (red) and the Supertrend. The bulls are likely to use this support zone for new long entries. If, contrary to expectations, the downward momentum gains momentum and the BNB rate slips back below these price marks, a retest of the green support area must be planned. With the 61 Fibonacci retracement and the EMA50 (orange), further support is running here.
As long as the overall market continues to trend bullish, a breakthrough in this zone is not to be expected. Only when the USD 480 per day’s closing price is broken does the correction expand to at least USD 450. In addition to the 50s Fibonacci retracement, the purple support zone also features the last noticeable low at USD 436. Once again, the buyer side is likely to make more purchases. A directional decision should be made at the latest on the MA200 (green) at USD 420. Only when the bears break through this important moving average will investors focus on the maximum bearish price target of USD 395. In addition to the EMA200 (blue) paired with the 38 Fibonacci retracement, the low of October 13, 2021 is also found in this area. From the current perspective, a break in this zone is not to be expected. Investors should use short-term price corrections to the support levels mentioned for entry into BNB.
Both the RSI and the MACD show a buy signal on a daily basis. The RSI indicator is currently trading above 70. This could indicate a setback, at least in the short term. As long as neither the MACD nor the RSI generate a sell signal, short trades are not recommended. Since both indicators also have a buy signal on a weekly basis, further increasing BNB rates should be planned in the future.
Worst price development among the top 10 altcoins: Shiba Inu (SHIB)
Shiba-Inu has to pay tribute to its dynamic rise in the last few weeks of trading and corrects more than 20 percentage points on a weekly basis. At the time of this analysis, the SHIB price is still trading above its EMA20 (red), which is at USD 0.00005288, despite the corrective trend in the past trading week. As long as Shiba Inu does not move back below the weekly low of $ 0.00004245, there are still chances for the bulls to attack again towards the purple resistance area.
Bullish variant (Shib)
The price of Shiba Inu has so far stabilized above the blue support area despite increased profit-taking. The bulls used the zone between USD 0.00004468 and USD 0.00003902 for a new entry and subsequently heaved the SHIB price back above the EMA20. If the buyers manage to break yesterday’s high, a renewed rise in the direction of the 61 Fibonacci retracement at USD 0.00006360 should be planned. If this price level is also regained dynamically, the bulls will do everything in their power to buy Shiba Inu back towards the purple resistance zone.
In this zone, increased profit-taking is to be expected in the short term. Only when the resistance at USD 0.00007744 is broken sustainably, however, will the chances of a march back to the all-time high at USD 0.00008872 noticeably increase. If there is no clear reversal here either and the SHIB rate can subsequently stabilize above the all-time high, an attack in the direction of the upper Bollinger band at USD 0.00009384 is conceivable.
Should this resistance level be pulverized as well, the next resistance will activate at USD 0.00010632. The Fibonacci extension of the current price movement runs here. A breakout above this then activates the next price target in the form of the 138 Fibonacci extension at 0.00011363 USD. In the medium term, the probability of a price increase increases to the 161 Fibonacci extensions at 0.00012892 USD. Here again, significant profit-taking is to be planned. Only when Shiba Inu leaves this resistance level behind at the daily closing price, a subsequent increase to USD 0.00015387 is conceivable. In the medium term, Shiba Inu could even rise to the maximum bullish price target of 0.00019423 USD. From the current point of view, the 261 Fibonacci extension represents the maximum price target for the coming trading months. Tripling the SHIBB price would put Shiba Inu on a level with Solana (SOL) and the Binance Coin BNB, which tends to be rather unlikely.
Bearish variant (Shib)
The bears recently caused Shiba Inu to drop significantly. So far, however, the seller has missed its chance to permanently cap the SHIB price back below the EMA20 (red). The brief retest of the breakout level at USD 0.0004468 was the highest of emotions for now. The bears could not generate more sales pressure. If Shiba Inu falls back below $ 0.00005288, schedule another test of the blue support zone. If the SHIB price subsequently falls back below the weekly low at USD 0.00004468, investors will focus on the 23rd Fibonacci retracement at USD 0.00003865.
This increases the likelihood of a correction widening to at least $ 0.00003745. The EMA50 (orange) runs here. Only when this sliding support is broken is a retest of the cross support from the supertrend and history high at USD 0.00003524 conceivable. Here the bulls will have to stand up in order to avert a sell-off into the red chart area at USD 0.0003231. If Shiba Inu continues to be bearish as a result, and the red support zone is also dynamically undershot, the chance of a relapse to the maximum bearish price target in the purple support area increases noticeably. At USD 0.00002414 at the latest, the bulls will try to turn things around to avert a price collapse.
If the price weakness persists, the RSI indicator threatens to fall back into the neutral zone between 45 and 55 and negate the buy signal of the previous weeks. Since the MACD has also activated a sell signal for five trading days, a short-term widening of the correction should not come as a surprise.
Top 10 stability
While Bitcoin was quoted almost unchanged at USD 62,000 at the end of the week, the BTC price shot significantly north at the beginning of the week and is currently a good seven percentage points higher at USD 66,300 compared to the week. With the exception of Shiba Inu (SHIB), which corrects by almost 20 percentage points, all other top 10 altcoins show a positive price development. Binance Coin (BNB), together with Solana (SOL), tops the list of weekly winners, each with a price increase of around 23 percent. Polkadot (DOT) are also bullish with a 22 percent price increase, followed by Terra (LUNA) with 19 percent and Ripple (XRP) with 14 percent. By taking profits at Shiba Inu, Dogecoin (DOGE) can overtake SHIB again and recapture eighth place in the ranking.
Winner and Loser of the Week
A look at the top 100 altcoins shows a bullish picture for the past trading week. Although Bitcoin is also trending sideways this week, almost 70 percent of the 100 largest cryptocurrencies show a price increase in a 7-day comparison. The list is led by Kadena (KDA) with a remarkable 206 percent increase in price, followed by Loopring (LRC) with 146 percent increase in value. The Crypto.com Coin (CRO) can also convince with 80 percent price gain. In total, almost 30 top 100 altcoins are rising by more than 20 percent to the north, which also underlines the bullish tendency on the altcoin market.
The short list of weekly losers is headed by SafeMoon (SAFEMOON) with a 20 percent discount. Investors are also increasingly taking profits here after strong price increases in the previous weeks. Quant (QNT) and Olympus (OHM) are also falling behind, each losing around nine percentage points on a weekly basis. The strength of the crypto reserve currency Bitcoin at the beginning of the week could lead to increased investments in BTC this trading week and lead to increased profit-taking in the Altcoin sector.
Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.
The chart images were created using TradingView created.
USD / EUR exchange rate at the time of going to press: 0.86 euros.