Bitcoin Market Rebound May Spark Altcoin Rally

Key points:

• Bitcoin is showing a negative divergence on the charts, signaling a weakening in bullish momentum.

• Buyers need to maintain Ether above $4,094 to retain the upper hand.

Bitcoin (BTC) extended its pullback on Monday, suggesting profit booking by short-term traders. Analyst Captain Faibik said in a post on X that BTC could drop to the key $98,000–$100,000 psychological zone in case of an “extreme bearish flush.”

Despite the correction, analysts expect Bitcoin to trade higher over the next few months. Canary Capital CEO Steven McClurg said in a CNBC interview that there is a greater than 50% chance of BTC reaching the $140,000 to $150,000 zone this year before the bear market next year.

The retail crowd has been bullish on BTC but has not shown the same enthusiasm for Ether (ETH) despite the strong performance over the past 30 days, according to sentiment platform Santiment. As the markets generally move opposite to retail’s expectations, Santiment believes ETH has a “slightly more bullish path” compared to BTC.

Could BTC form a higher low, signaling strength? Will altcoins follow BTC higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out. 

S&P 500 Index price prediction

The S&P 500 Index (SPX) remains in a strong uptrend, indicating that the buyers are in command.

A minor negative is that the relative strength index (RSI) is forming a negative divergence pattern. That suggests a pullback or consolidation in the near term. A break and close below the 20-day exponential moving average (6,370) could accelerate selling. The index may then plummet to the 50-day simple moving average (6,237).

Contrary to this assumption, if buyers thrust the price above 6,500, the index could start the next leg of the uptrend to 6,696.

US Dollar Index price prediction

The US Dollar Index (DXY) has been witnessing a tough battle between the bulls and the bears at the moving averages.

The marginally downsloping 20-day EMA (98.23) and the RSI just below the midpoint indicate a minor advantage to the bears. If the price breaks below 97.62, the index could tumble to 97.10.

Conversely, a break and close above the 20-day EMA shows demand at lower levels. The bulls will then try to push the price to 99.32 and subsequently to 100.25. Such a move suggests the index could swing between 96.37 and 102 for some time.

Bitcoin price prediction

BTC fell below the 50-day SMA ($115,702) on Monday, but the price is finding support at the neckline of the inverse head-and-shoulders pattern.

There is minor resistance at $118,575, but if the level is crossed, the BTC/USDT pair could rally to $120,000 and then challenge the all-time high of $124,474. 

However, a word of caution for the bulls is that the RSI has formed a negative divergence. That signals the bulls are losing their grip. If the price breaks below the neckline, the Bitcoin price could slump to $110,530. This is a critical support to watch out for because a break below $110,530 opens the gates for a collapse to $105,000 and then to $100,000. 

Ether price prediction

ETH extended its pullback on Monday after breaking below the immediate support at $4,368. That suggests profit booking by the short-term buyers.

The breakout level of $4,094 is an essential support to watch out for. If the price rebounds off $4,094 with strength, it suggests the bulls are trying to flip the level into support. The ETH/USDT pair could then again rally toward $4,788. A break above $4,788 clears the path for a rally to $5,000.

On the contrary, a break and close below $4,094 signals the start of a deeper correction. The Ether price could plummet toward $3,745 and then to the 50-day SMA ($3,523).

XRP price prediction

Buyers could not push XRP (XRP) back above the 20-day EMA ($3.10) in the past few days, indicating a lack of demand at higher levels.

The price has slipped to the 50-day SMA ($2.94), which may act as a solid support. If the price rebounds off the 50-day SMA, the bulls will try to drive the XRP/USDT pair above the downtrend line. If they do that, the XRP price could rally to $3.40 and then to $3.66.

Conversely, a break below the 50-day SMA could sink the pair to the $2.73 support. A solid bounce off the $2.73 level could reach the downtrend line. A break above the downtrend line suggests the XRP price could range between $2.73 and $3.66 for a while.

BNB price prediction

The repeated failure of the bulls to sustain BNB (BNB) above $861 may tempt short-term buyers to book profits.

The BNB/USDT pair could slide to the 20-day EMA ($808), which is a critical support to watch out for. If the price rebounds off the 20-day EMA with strength, it enhances the prospects of a break above $861. If that happens, the BNB price could soar toward the psychological level of $1,000.

Contrary to this assumption, a break and close below $794 suggests the pair may form a range between $732 and $861 for some time.

Solana price prediction

Solana (SOL) bounced off the $185 level on Saturday, but the bulls could not sustain the higher levels.

The price has declined to the 20-day EMA ($182), which is likely to attract strong buying by the bulls. If the price rebounds off the moving averages, the bulls will again try to push the SOL/USDT pair toward the overhead resistance of $210. If the $210 level is crossed, the rally could reach $240.

Instead, if Solana’s price continues lower and breaks below the 50-day SMA ($172), the next stop could be the uptrend line.

Related: XRP price analysis: Bulls are in trouble and must quickly reclaim $3

Dogecoin price prediction

Dogecoin (DOGE) has been stuck inside a narrow range between $0.26 and $0.21 for a few days.

The flattish 20-day EMA ($0.22) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price skids below the $0.21 support, the DOGE/USDT pair could tumble to $0.19 and then to $0.16.

On the upside, the bulls will have to drive the Dogecoin price above $0.26 to signal strength. The pair may then challenge the stiff overhead resistance of $0.29. A break and close above $0.29 opens the doors for a rally to $0.35.

Cardano price prediction

Buyers have maintained Cardano (ADA) above the $0.90 level but are struggling to push the price above the $1.02 resistance.

Both moving averages are sloping up, indicating an advantage to buyers, but the negative divergence on the RSI suggests the upside momentum is slowing down. If the $0.90 support cracks, the ADA/USDT pair could slide to the 20-day EMA ($0.84). Buyers are expected to defend the 20-day EMA because a break below it may sink the Cardano price to the 50-day SMA ($0.75).

If the price rebounds off the 20-day EMA, it signals buying at lower levels. The bulls will then try to resume the up move by pushing the price above $1.02. If they do that, the pair could skyrocket to $1.17.

Chainlink price prediction

Chainlink (LINK) has been in an uptrend for the past few days, but the bears are trying to stall the up move at $27.

The upsloping moving averages indicate an advantage to buyers, but the negative divergence on the RSI suggests the bullish momentum is weakening. Sellers will have to yank the price below the 20-day EMA ($21.13) to gain the upper hand.

The first support on the downside is at $24.31 and then at the 20-day EMA. If the price rebounds off the 20-day EMA, the bulls will again try to drive the LINK/USDT pair above $27. If they manage to do that, the Chainlink price could soar to $31.

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.