Bitcoin’s move to $80,000 could trigger a rally in ETH, SOL, SUI, and AAVE
2024.11.10 17:41
Bitcoin (BTC) has been on a roll this week, rising above $80,000 on Nov. 10. Analysts believe the rally has just started, and that Bitcoin has a long way to go. Bitcoin analyst Tuur Demeester said in a post on X that “no rash action is needed, HODLing does the work for you.”
Newbie traders may be contemplating that Bitcoin’s rally has made it overvalued, but Bitwise Invest CEO Hunter Horsley said in a post on X that “Bitcoin is different.”
“When Bitcoin’s price goes up, people view it as more likely that it will succeed, and therefore be even more valuable. And so it’s likely to go up even further,” Horsley explained.
Crypto market data daily view. Source: Coin360
The rally is not limited to Bitcoin alone. Several altcoins have started to breakout of their respective overhead resistance levels, signaling improving sentiment.
However, popular commentator WhalePanda cautioned that low liquidity moves on the weekend almost always fully “retrace.”
Will Bitcoin sustain the higher levels, pulling select altcoins higher? Let’s study the charts of the top 5 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin bulls are not giving up any ground to the bears, which may have resulted in another round of short covering on Nov. 10. That pushed the price above $80,000.
BTC/USDT daily chart. Source: TradingView
The target objective of the breakout from the $54,000 to $73,777 range is $93,554. This level may act as a resistance, but the buyers will try to extend the uptrend to the psychologically crucial level of $100,000.
Time is running out for the bears. If they want to make a comeback, they will have to pull the price below the 20-day exponential moving average ($71,753). That could trigger long liquidation, pulling the BTC/USDT pair toward the 50-day simple moving average ($66,864).
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls purchased the dip to the 20-EMA, which remains the key short-term level to watch out for. If the bulls do not allow the price to skid below the 20-EMA, the pair may surge toward $93,554.
Conversely, if the price turns down and breaks below the 20-EMA, it will suggest that the bullish momentum is weakening. The pair may drop to $75,500 and then to the breakout level of $73,777.
Ether price analysis
Ether (ETH) rose sharply after bouncing off the support line of the symmetrical triangle pattern on Nov. 6.
ETH/USDT daily chart. Source: TradingView
The break above $2,850 opened the doors for a rally to the downtrend line. Sellers are expected to defend the downtrend line with all their might because a break above it could thrust the price to $4,094.
The critical support to watch on the downside is $2,850. If the price rebounds off $2,850 with strength, it will signal that the sentiment remains positive, and traders are buying on dips. However, a drop below $2,850 will tilt the advantage in favor of the bears.
ETH/USDT 4-hour chart. Source: TradingView
The sharp rally has pushed the RSI into deeply overbought territory on the 4-hour chart, increasing the possibility of a pullback in the near term. The 20-EMA is the first support to watch out for. If the price rebounds off the 20-EMA with strength, the bulls will attempt to drive the ETH/USDT pair to $3,500.
On the other hand, if the price dips below the 20-EMA, it will suggest that the traders are rushing to the exit. That may tug the price down to the breakout level of $2,850.
Solana token price analysis
Solana (SOL) broke out of the $210 overhead resistance on Nov. 10, indicating that the bulls are trying to assert their supremacy.
SOL/USDT daily chart. Source: TradingView
If the price closes above $210, it will indicate the start of the next leg of the uptrend. The SOL/USDT pair could surge to $260, where the sellers are expected to mount a strong defense.
On the contrary, if the price fails to close above $210, it will signal that the markets have rejected the breakout. The pair could fall to $189, which is an essential near-term support to keep an eye on. A slide below $189 could sink the pair to the 20-day EMA ($178).
SOL/USDT 4-hour chart. Source: TradingView
The pair rebounded off the 20-EMA, indicating that the bulls are buying on minor dips. The bulls have pushed the price above the $210 resistance, clearing the path for a possible rally to $230 and eventually to $260.
This positive view will be invalidated in the near term if the price turns down and breaks below the 20-EMA. The pair could then slump to the 50-SMA, delaying the start of the next leg of the uptrend.
Related: Bitcoin price hits $80K for the first time — New ‘inflation-adjusted’ all-time high
Sui price analysis
Buying accelerated in Sui (SUI) after the price broke out of the stiff overhead resistance at $2.37 on Nov. 9.
SUI/USDT daily chart. Source: TradingView
The bulls pushed the price above $3, but the long wick on the candlestick shows selling at higher levels. If the price skids below $2.70, the bears will try to start a pullback toward the breakout level of $2.37.
Contrary to this assumption, if the price stays near $3, it will suggest that the bulls are holding on to their positions as they anticipate another leg higher. If the SUI/USDT pair scales above $3.15, the next stop could be $4.
SUI/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is facing selling above $3. The first support on the downside is $2.70. If the price rebounds off $2.70 with strength, it will signal that the bulls are not waiting for a deep correction to buy. That may propel the pair to $3.15 and later to $3.60.
Alternatively, if the price breaks below $2.70, it will indicate profit booking by short-term traders. The pair may then drop to the 20-EMA.
Aave token price analysis
Aave (AAVE) picked up momentum after breaking out of the moving averages on Nov. 6 and reached the psychological resistance of $200 on Nov. 9.
AAVE/USDT daily chart. Source: TradingView
The bears will try to stall the up move at $200, but if the bulls do not cede much ground to the sellers, the likelihood of an upside breakout increases. If buyers pierce the $200 resistance, the AAVE/USDT pair could rally to $260.
The immediate support on the downside is $180. A break below this level could accelerate selling, pulling the price to the 20-day EMA ($160). A deep pullback is likely to delay the start of the next leg of the up move.
AAVE/USDT 4-hour chart. Source: TradingView
The pair is facing selling near $200, which could pull the price down to the 20-EMA. If the price rebounds off the 20-EMA with strength, the bulls will make one more attempt to drive the pair above $200. If they manage to do that, the pair is likely to rise to $220.
Instead, if the price skids below the 20-EMA, it will signal that the short-term traders are booking profits. That could pull the pair to $175 and subsequently to the solid support at $165.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
