Bitcoin’s (BTC) rally above $ 50,000 appears to have received a boost from institutional buyers looking to hedge their portfolio against rising inflation, JPMorgan said in a statement to its clients on Oct. 7. The bank’s analysts speculated that institutional investors might prefer Bitcoin over gold as a better hedge against inflation.

A recent study entitled “Cryptocurrencies and the Sharpe Ratio of Traditional Investment Models” by the crypto asset management companies Iconic Funds and Cryptology Asset Group has shown that the inclusion of cryptocurrencies in any portfolio increases the return and the risk-return Portfolio performance improved.

Daily performance of the cryptocurrency market. Source: Coin360

Bloomberg’s chief commodities strategist Mike McGlone said in the October 2021 issue of the Bloomberg Galaxy Crypto Index that $ 50,000 on Bitcoin could serve as strong support for declines in the fourth quarter.

Could the recent surge in Bitcoin and Altcoins lead to profit bookings from traders, or is this the start of a long-term upward trend? Let’s check out the top 10 cryptocurrency charts to find out.

BTC / USDT

Bitcoin saw profit posting on October 7, but the bears were unable to drag the price below the breakout level of $ 52,920, which is a positive sign. The bulls attempted to resume the upside move on October 8th but the long wick on the daily candle suggests selling at higher levels.

BTC / USDT daily chart. Source: TradingView

Initial downside support is at $ 52,920, but if bears pull the price below that level, the BTC / USDT pair could hit the psychological level at $ 50,000 and then to the 20-day exponential moving average (EMA) ($ 48,285 ) fall.

The rising 20-day EMA and Relative Strength Index (RSI) near the overbought zone indicate an advantage for buyers. If the price recovers from the 20-day EMA, the bulls will try again to continue the uptrend.

A break and a close above $ 56,100 could push the pair to $ 60,000 where bears could build strong resistance. This positive view will be invalid if the price falls below the 50-day simple moving average (SMA) ($ 47,342). The pair could then retest critical 100-day SMA support ($ 42,691).

ETH / USDT

The rebound in Ether (ETH) rose above the immediate resistance at $ 3,676.28 today, but the bulls may have trouble keeping the price above it. The RSI is near the downtrend line which could act as resistance.

ETH / USDT daily chart. Source: TradingView

If the price drops from current levels, the initial support will be at the 20-day EMA ($ 3,324). A strong rebound from this level indicates that sentiment remains positive and traders buy on dips.

This increases the likelihood of a rally to the stiff overhead resistance at $ 4,027.88. Conversely, if the price falls below the 20-day EMA, the ETH / USDT pair could fall to the 100-day SMA ($ 2,899).

BNB / USDT

The bulls are struggling to keep Binance Coin (BNB) above $ 433, suggesting that demand is drying up at higher levels. The price slid back below $ 433 on October 8th and the bears will now attempt to pull the price below the 20-day EMA ($ 409).

BNB / USDT daily chart. Source: TradingView

If successful, the BNB / USDT pair could slide to the 100-day SMA ($ 379). Such a move could increase the likelihood that the pair will stay between $ 320 and $ 450 for the next several days.

On the other hand, if the price rebounds from the 20-day EMA, this suggests that sentiment will remain positive and traders will buy on dips. The bulls will then make one more attempt to break the overhead hurdle at $ 450 and begin the march north towards $ 518.90.

ADA / USDT

After several failed attempts over the past few days, the bulls managed to push and close Cardano (ADA) above the 20-day EMA ($ 2.25) on October 7th. However, the long wick on the day candle showed that bears at. higher levels are active.

ADA / USDT daily chart. Source: TradingView

The price action of the past few days has formed a symmetrical triangle pattern, suggesting that the bulls and bears are undecided about the next directional move. The 20-day EMA and 50-day SMA ($ 2.47) are flat and the RSI is close to 50, suggesting a balance between supply and demand.

This demand will tilt in favor of the bulls as the price rises and breaks above the resistance line of the triangle. The ADA / USDT pair could then move to $ 2.47 where the bears could build strong resistance again. A break above this level could open the doors for a rally to $ 2.80.

Conversely, a break below the triangle’s support line could push the price to the 100-day SMA (USD 1.96).

XRP / USDT

Ripple (XRP) formed an inside-day candlestick pattern on October 7th, indicating indecision between bulls and bears. The bulls attempted to clear the upside uncertainty on October 8 but failed to break the overhead hurdle at the 50-day SMA ($ 1.09).

XRP / USDT daily chart. Source: TradingView

The next directional move could begin after the bulls push the price above the 50-day SMA or the bears push the XRP / USDT pair below the 20-day EMA ($ 1.03). A break and close above the 50-day SMA could open the way for a potential rally to $ 1.41.

Alternatively, a break below the 20-day EMA could lower the price to the 100-day SMA ($ 0.92). The bulls have held this support during the last two retests and may try again.

SOL / USDT

The bears have failed to bring Solana (SOL) below the 20-day EMA ($ 153) for the past two days, suggesting the bulls are vigorously defending the level. This may have led to buying in the short-term bulls on October 8, which led to a strong rebound.

SOL / USDT daily chart. Source: TradingView

Buyers will now make another attempt to push the price above the 61.8% Fibonacci retracement level at $ 177.80. If they succeed, the SOL / USDT pair could rise to $ 200 and then challenge the all-time high of $ 216.

Alternatively, if the price falls from current levels or from overhead resistance and falls below the 20-day EMA, the pair could slide to the 50-day SMA ($ 137). The bulls might try to defend these levels, but if they fail, the decline could extend to $ 116.

DOGE / USDT

Dogecoin (DOGE) turned down from the downtrend line on October 6, but the bears failed to bring the price below the 20-day EMA ($ 0.23), suggesting buying at lower levels.

DOGE / USDT daily chart. Source: TradingView

The 20-day EMA has risen and the RSI is in positive territory, suggesting that the bulls have the upper hand. If buyers drive price above the downtrend line, bullish momentum is likely to pick up.

The DOGE / USDT pair could then rise to $ 0.32 and later to $ 0.35. Contrary to this assumption, if price again reverses direction from the downtrendline, the likelihood of a break below the 20-day EMA will increase. The pair could then fall to the $ 0.21 to $ 0.19 support zone.

Related: Pro-crypto senator Cynthia Lummis announces BTC purchase of up to $ 100,000

DOT / USDT

Polkadot (DOT) broke resistance at USD 33.60 on October 7, but the long wick on the daily candle suggests selling at higher levels. Today’s candlestick pattern within the day signals indecision between bulls and bears.

DOT / USDT daily chart. Source: TradingView

The RSI has hit the downtrendline which has acted as a rigid resistance. If the price breaks down from current levels, the bears will attempt to pull the DOT / USDT pair below the support at $ 28.60.

Alternatively, if the bulls push the price above $ 35.31, the pair could rise to $ 38.77. The bears might try to aggressively defend these levels, but if the bulls overcome this resistance the pair could rise to $ 42.60 and then $ 49.78 later.

MOON / USDT

The Terra Protocol’s LUNA token rebounded sharply, rising above the overhead resistance at $ 45.01 on October 7, but the bulls failed to break the overhead hurdle at $ 49.54 on October 8. This suggests that the bears will continue to defend the psychological level at $ 50.

LUNA / USDT daily chart. Source: TradingView

The price fell back below $ 45.01 on October 8, and the bears will now try to push the price down to the 20-day EMA ($ 39.63). This is important support for the bulls as a strong rebound suggests sentiment remains positive and traders buy on dips.

That increases the chance of a break above $ 50. In this case, the LUNA / USDT pair could begin the next leg of the uptrend towards $ 56.97 and then $ 65.97. On the contrary, a break below the 20-day EMA could cause a fall to the 50-day SMA ($ 34.92).

UNI / USDT

Uniswap (UNI) appears to form the right shoulder of the bullish inverse head-and-shoulders pattern that completes when interrupted and closes over the neckline.

UNI / USDT daily chart. Source: TradingView

Such a move could push the price down to $ 31.41, and if crossed that level, the rally could extend to the pattern target at $ 36.98. The 20-day EMA ($ 24.50) has started rising and the RSI is just above the middle, indicating a small advantage for the bulls.

This positive view will be invalidated if the UNI / USDT pair turns down from current levels and breaks below the critical support at USD 22. If that happens, traders can rush to exit and push the pair down to $ 18.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement carries risks. You should do your own research when making a decision.

Market data is provided by HitBTC Exchange.

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