Bitcoin back above $50,000, Can It Break $60,000 this Month?

However, with the Bitcoin price below $50,000, several institutions and retailer investors used this opportunity to accumulate on their stores of Bitcoin.

Nine days later, the Bitcoin price is seen to have surpassed expectations sooner than expected, breaking through previous levels of support and resistance to establishing new levels of support at about $52,900.

As of 8th October, the Bitcoin price stands at above $52,900 per coin, with this price level rejecting the attempts of the bears to crash the price.

Therefore, establishing a new level of support.

The trend to the upside is seen occurring amidst bullish speculative fundamentals surrounding institutional investors and the Bitcoin ETF’s approval.

Also, with the growing threat of an inflationary devaluation of fiat currencies, investors search for several ways to protect their respective portfolios.

With Bitcoin being a more reliable hedge compared to Gold, this was made known to its clients by the investment bank, JP Morgan on 7th October.

Hence, it's apparent that the fundamentals of Bitcoin depict further growth, coupled with other bullish news such as the use of renewable energy by El Salvador in the mining of Bitcoin.

It is safe to say the price of Bitcoin has a high possibility of never returning to levels as low as $20,000.

Also, recent studies taken from several asset management firms depict that portfolios with funds in Bitcoin experienced significant gains.

Currently (9th October), the Bitcoin price stands at $54,766, up 1.26% in the last 24 hours, summing up to a 13.97% increase in the last seven days with data obtained from coinmarketcap.

With several individuals stating the commencement of an altcoin season, the ripple effect of Bitcoin’s upward price surge is reflected amongst other digital assets.

The only question left unanswered is the possibility of BTC hitting the previous all-time highs or close to $60,000 within October.

Currently, a drop to the downside of BTC could mean a target of $50,000 per coin, and if this price is reached.

Then it is more likely that BTC would test the $48,245 (20-day moving average), and a rebound at this point could pave the way for the bulls to achieve a price of $60,000.

For a more in-depth analysis of the current BTC price, let us consult the price chart.

Indicators

The relative strength index (RSI) value stands at 41, meaning there is a reduction in the buying momentum and an increasing number of traders selling their holdings. A drop below an RSI of 30 will place BTC in an oversold position, leaving it primed for a reversal. However, though below 50, the market is seen to be fairly stable.

The 20-day ma indicating a likely short term trend depicts a slowed momentum with individuals taking profit and shows a market primed for a possible recovery. However, a negative breakout could lead to further selling action and downward price action. If this happens, it is more advisable to buy the dip.

Ethereum / US Dollar

As with other altcoins, Ethereum also benefited from the ripple effect of the BTC upward momentum from the last seven days although not experiencing as much growth, being up by about just 3.90%, and 0.43% in 24 hours.

However, traders took this opportunity to accumulate Eth by buying the dips.

Currently, the Ethereum price stands at $3,589 per coin.

The smart contracts platform remains a key target by institutional investors, retail traders, and small scale investors, with fundamentals pointing to Ethereum achieving a price valuation of around $10,000 per coin for this bull run.

In an altcoin season, several digital assets are seen to rack in maximum gains, and therefore, to increase gains, several individuals use portfolio diversification to top alt projects.

Although to attain previous highs ( above $4,000), Ethereum is expected to break out with the strong fundamentals backing up the project.

First, getting past a resistance mark above $3,600 is highly required before Ethereum can breakout.

The prediction of a breakout can also be expected after criteria for the formation of a double bottom pattern illustrated on the chart is seen, followed by an increase on the one day chart.

Indicators

Ethereum RSI indicates a market momentum in which individuals are buying ETH with a value of 60.

However, still close to the 70 RSI above, which would signify a possible overbought scenario for ETH, priming it for a possible pullback.

If this happens, then Eth would have to be sustained by the level of support set at $3,324. Looking historically at previous RSIs, we can see that the market has been relatively stable.

Using the 50 period MA to determine the mid-term market trend illustrates a positive momentum that indicates a possible bullish scenario.

This is also confirmed by the relative strength index discussed above.

Ripple / US Dollar

In light of the court case between Ripple Labs and the SEC, progressions in the case have led several investors to anticipate huge XRP gains.

There could be a possible settlement and a major hand for Ripple as the presiding judge decided to scrutinise a series of emails between the SEC and the third party concerning Ripple.

Other fundamentals include the collaborations for the integration of XRP for transactions in banks.

With the above fundamentals, it has been noted that several investors are utilising this period as an accumulation zone in preparation for a massive price pump.

This is also evidenced by an increase in the buying volume illustrated on the one day chat.

Currently, the XRP price stands at $1.16, translating to a 9.06% 24-hour growth, up about 10,49% in the last seven days.

Aside from the BTC effect causing a ripple on XRP’s price, most of the market driving force of this asset comes from the progression of the court case, which has Ripple with the upper hand.

According to charts acquired from tradingview, there is an increase in the buying volume, also supporting the theory of a potential accumulation phase by the bulls in preparation for the outcomes of Ripple’s court battle with the SEC.

Indicators

Ripple RSI above 60 indicates a positive momentum with several individuals holding on to their XRP bags or accumulating.

RSI breaking over 70 would indicate an overbought scenario for XRP, at what we begin to expect a pullback.

The 50 period moving average illustrates previous candles above the average, indicating an uptrend.

However, as at the writing of this price article, it is seen that the 50 day period moving average sits above the candles.

This could be a potential trade, but it does not look convincing.

Therefore, in the medium trend, a trade placed when there is significant space between the 50 MA line and the candles underneath is more likely to make gains in the midterm.

Litecoin / US Dollar

While awaiting for Litecoin to capitalize on its momentum in September, which saw its price hit $233 off the surge of the Bitcoin price, LTC has rather fallen victim to a pump and dump scheme which came to being amidst the retail giant, Walmart denying rumours of it accepting crypto as a channel of payment.

Before it's statement, rumours of Walmart accepting Litecoin as payment caused the Litecoin price to rally up, an effect of investors accumulating LTC in anticipation of an even higher price momentum on the release of an official statement.

However, with a negative statement being released, these investors are seen to dump their positions which caused a ripple effect making more individuals sell, dropping the LTC price to about $163 per coin.

Present charts indicate a recovery with the LTC bulls trying to get the price back above its September price high with the current LTC price standing at $180 per coin corresponding to a 2.51% 24-hour increase, up about 8% in the last seven days.

This is also coupled with an increase in trading volumes.

Litecoin is expected to capitalize on this price growth to rally up organic gains; however, will this growth to September levels be off its momentum or will it require another price surge by Bitcoin to benefit from its ripple effect.

Already, $163 can be seen as a new level of support that breaking below could signify the beginning of a downtrend.

However, over the next few days, LTC will look to challenge the $200 price tag.

Indicators

As earlier stated, the dump is reflected with the RSI going to about 30, indicating a high selling pressure by individuals.

The relative strength index is seen above 50, indicating current stability in the market momentum, with the bulls increasing their holds of LTC.

This stability can then be questioned if the RSI rallies above the overbought zone of 70, signalling a potential sell-off.

The 50-day moving average also correlates with the RSI showing a positive outlook for LTC in the midterm.

Bitcoin Cash / US Dollar

Since experiencing rejection at $787 on the 21st of September, BCH has been experiencing a downtrend over the past few weeks.

Currently, the BCH price is trading at $615.71, which translates to a 3.22% growth in the last 24 hours and a rise from an initial fall to $488 on the 29th of September, corresponding to about a 7% gain over the last seven days.

From the volume chart, we see a consistent increase in the buying volume over the last couple of weeks, and this can be the action of the bulls pushing the BCH to achieve previous levels of $787 or more.

For the BCH price to experience a more bullish outlook, the price has to surpass $650, also corresponding to RSI above 60.

However, a breakout to the downside could see another downward action, $475 serves as a critical level of support.

Indicators

As of the writing of this article, BCH has a current RSI of 57, indicating a stable market currently in progression.

Since being below the oversold mark, individuals piled up on buying the dip, leading the market back into an uptrend.

The 50-day moving average corresponding to the initial dip indicated a short-selling opportunity.

However, the candles are seen making their way over the 50 MA with the market recovering.

Further growth will lead to a possible entry into a long position.

Cardano / US Dollar

Across the last seven days, the cardano price has seen a lot of sideways action.

Data from coinmarketcap shows a gain of just 0.15% over the past seven days for ADA.

With the launch of smart contracts on the platform, the moon was anticipated in weeks.

However, the current market state of ADA indicates a contradictory trend.

Currently, the price of ADA lies at $2.26 per coin, experiencing a strong pushback by the bears, rejecting from the $2.3 price mark.

Trading volumes continue to be at a minimum for cardano as a lot of scepticism shrouds the market.

Despite this, a possible period of accumulation could be on the cards for ADA.

Indicators

The relative strength index for ADA still hangs at 50, indicating a neutral market, unstable and can break out either to the up or downside.

A drop below this RSI could signal the selling of holding of ADA by traders, which can create an accumulation opportunity.

As first illustrated by the RSI, the scepticism in the market also reflects in the moving average, confirming a reduced momentum in the general ADA market.

Dogecoin / US Dollar

After surviving a pull by the bears to drag the price of Dogecoin down, the bulls seem to have regained the upper hand.

Currently, doge trades at $0.24, a little price shift of about 1% in the last 24 hours, and a seven-day change of 3.93%.

Could the meme coin Shiba inu be eating into the growth of Dogecoin, or is another pump left in this asset?

Indicators

The relative strength index of doge stands at 55, showing a power struggle between the bulls and bears.

Further momentum to the downside below 50 could indicate a gain of supremacy by the bears.

A positive lead by the bulls being indicated; however, with the pull from the bears slowing the momentum, the next few days will be crucial in determining the market trend if the bulls or bears succeed.

Correlations

• Bitcoin / Ethereum = 0.78 (-1.64)
• Bitcoin / Ripple = 0.39 (+6.88)
• Bitcoin / Litecoin = 0.63 (-0.15)
• Bitcoin / Bitcoin cash = 0.65 (-0.81)
• Bitcoin / Cardano = 0.63 (-5.57)
• Bitcoin / Dogecoin =0.59 (-6.90)

We can tell from the above, most of the above altcoins depreciated against Bitcoin, with only Ripple appreciating.

Since the previous market crash, the total market cap of cryptocurrencies is at $2.3 trillion, corresponding to a 0.88% drop in the last 24 hours.

The total volume of crypto traded in the market is still down 8.08% in the last 24 hours, corresponding to $97.15B.

Bitcoin dominance is up to 44.82%, which corresponds to 0.17% in the last 24 hours, while that of ETH stands at 18.1%, illustrating the further gain of the market presence of Bitcoin over altcoins.

Due to Bitcoin being the first cryptocurrency and its dominance surpassing altcoins, Bitcoins credibility and price aid in dictating the state of the market.

Therefore, when its dominance reduces, the altcoins are gaining more independence from Bitcoin, which also has a long term positive outlook for the market.

Bitcoin gaining more dominance means more dependence of altcoins on BTC for dictating the market.

Key Notes for Today

• Bitcoin price above $50k, currently at $54,766.
• Ethereum steady around above $3,000, with a value of $3,589.
• Ripple remains bullish amidst its progressing court case, currently with a value of $1.16.
• Litecoin struggles to attain previous September highs of $233 but falls short with a current price of $180.
• Bitcoin Cash price at $615.71, bulls are looking to attain previous highs.
• Cardano bulls still try to fight through the resistance from the bears, but the bears stand strong, ADA price at $2.26.
• Dogecoin still struggles to gain momentum, standing at $0.24.