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Over the past three years, the US Securities and Exchange Commission has rejected several applications for an exchange-traded Bitcoin (BTC) fund. This disappointed the hopes of many investors who believed that the price of Bitcoin would rise higher if an EFT was approved.
While investors no longer attribute BTC’s future to the existence of an ETF, regulators could possibly change their anti-cryptocurrency stance in the future.
In an interview with Cointelegraph, SEC Commissioner Hester Peirce said the regulator will need to become accommodating to innovation as several people from both the crypto space and traditional financial institutions seek their guidance.
Bloomberg’s latest crypto newsletter predicts that a Bitcoin ETF could see the light of day if Democratic presidential candidate Joe Biden is elected as the next president of the United States. The author believes that a change of guard can bring regulatory clarity that could attract investments in digital assets.
Daily display of crypto market data. Source: Coin360
However, even if President Donald Trump is re-elected, Bloomberg expects Bitcoin to extend its upward trend for his second term as the digital asset will be underpinned by rising debt to GDP, quantitative easing and the rate of hash of Bitcoin.
Even if Bitcoin only increased at half the rate of its 1,400% gain from 2016 to 2020, it would increase to $ 80,000 by 2024.
The long-term forecasts are encouraging and so are the short-term charts. Let’s look at the top 5 cryptocurrencies that may outperform in the short term.
BTC / USD
The breakout of the symmetrical triangle on October 8 attracted buyers who pushed the price above the $ 11,178 resistance on October 10. However, the bears have not completely given up yet as they sold the rally to $ 11,482.44 on September 10th.
BTC / USD daily chart. Source: TradingView
The bulls took advantage of the decline to buy and did not allow the price to fall below $ 11,178. This suggests that sentiment has changed from selling on rallies to buying on dips.
The moving averages on the verge of a bullish crossover and the relative strength index above 64 indicate that the advantage is currently with the bulls.
If buyers manage to push the price above the $ 11,500 resistance, the next stop for the BTC / USD pair could be $ 12,000 and then $ 12,460.
This bullish view will be invalidated if the pair falls from current levels and breaks below the 20-day EMA ($ 10,853). Such a move will suggest that the current breakout has been a trap.
BTC / USD 4-hour chart. Source: TradingView
The trend on the 4-hour chart has turned bullish with both moving averages rising and the RSI in overbought territory. Buyers will again attempt to push the price above $ 11,500 and, if successful, the momentum will increase.
However, if the price breaks down from the general resistance, it could consolidate in a narrow range of $ 11,468.98 to $ 11,178 for some time. A sustained move under $ 11.178 will be a sign of short-term weakness.
XRP / USD
The bears defended the $ 0.26 resistance on Oct 10, but could not withstand the selling pressure today. This shows that the bulls are buying on every minor decline and are currently attempting to push XRP above $ 0.26.
XRP / USD daily chart. Source: TradingView
A breakout and close (UTC time) above $ 0.26 will complete a reverse head and shoulders setup that has a model target of $ 0.300288. The moving averages on the verge of a bullish crossover and the RSI near 60 suggest advantage to the bulls.
Contrary to this assumption, if the XRP / USD pair declines from current levels and breaks below the 20-day EMA ($ 0.246), it will show that the bears are aggressively shorting the rallies at $ 0.26.
XRP / USD 4-hour chart. Source: TradingView
The bears are attempting to defend the resistance at $ 0.26 but have not been able to pull the price below the 20 EMA. This suggests that the bulls are piling up on the dips.
The bullish moving averages and the RSI near 60 suggest that the bulls have the upper hand in the short term.
A break below the 20-EMA will be the first sign of weakness and the lead will turn in favor of the bears if they manage to lower the price below the $ 0.24 support.
Conversely, if the bulls manage to push the price above $ 0.26, a new uptrend is likely. The pair may encounter resistance at $ 0.266 and then $ 0.28, but the trend will remain bullish as long as the price remains above the neckline.
ADA / USD
The failure of the bears to sustain Cardano (ADA) below $ 0.90 between October 7 and 9 attracted aggressive buying from the bulls who then pushed the price above the moving averages.
ADA / USD daily chart. Source: TradingView
The moving averages on the verge of a bullish crossover and the RSI near 62 suggest that buyers have the upper hand. If they manage to push the price above the neckline, it will complete a reversal setup that has a pattern target of $ 0.1331.
This bullish view will be invalidated if the ADA / USD pair falls from current levels and breaks below the moving averages. Such a move will suggest that the breakout above $ 0.104044 was a bull trap.
ADA / USD 4-hour chart. Source: TradingView
The rebound of the immediate support at $ 0.1040440 suggests that sentiment has turned positive as the bulls see the dips as a buying opportunity.
However, unless the bulls drive the price above the neckline, the bears will again try to drive the pair back below $ 0.1040440 and the 20 EMA. If successful, the pair may dip to the 50 simple moving average and below it to $ 0.90.
Conversely, if the pair bounces off the 20-EMA, it will indicate strength and increase the possibility of a break above the neckline.
XMR / USD
Monero (XMR) is in an uptrend with both moving averages up and the RSI in the overbought zone. The bulls will now seek to extend the upward move to $ 140 and then to $ 150 thereafter.
XMR / USD daily chart. Source: TradingView
In a strong uptrend, corrections usually last one to three days and bulls see falls in the 20-day EMA ($ 105.96) as a buying opportunity because it offers a low-risk entry point with a good risk / reward ratio.
However, if the XMR / USD pair declines from current levels and falls below $ 121.427, the bears will try to drag the price down to the 20-day EMA. A break below this support will be the first sign of weakness.
XMR / USD 4-hour chart. Source: TradingView
The ascending triangle pattern completed with a breakout and close (UTC time) above $ 113.211. This bullish setup has a target pattern of $ 132,739. Buyers are currently attempting to sustain the price above $ 121,427.
If successful, it will suggest that $ 121,427 will now act as strong support. Even if the price falls below this level again, the bulls will again try to buy the downside to the 20-EMA.
If the pair bounces off this support, it will indicate strength and increase the possibility of a resumption of the uptrend.
ATOM / USD
Cosmos (ATOM) exploded and closed (UTC time) above the neckline of the reverse head and shoulders pattern on October 10th. This breakout saw further buying today and the bulls pushed the price above the $ 5.877 resistance.
ATOM / USD daily chart. Source: TradingView
The ATOM / USD pair could now start a rally that could reach $ 7.40 and then $ 8.877. The 20-day EMA ($ 5.17) has started to rise and the RSI has moved up into positive territory, which suggests a possible trend change.
Contrary to this assumption, if the pair falls from current levels, the bears will try to push the price back below the neckline and the 20-day EMA.
If this happens, it will indicate that the current breakout has been false. If the pair dips below the right shoulder at $ 4.549, the trend will turn in favor of bears.
ATOM / USD 4-hour chart. Source: TradingView
The bulls have pushed the price above the overhead resistance at $ 5.877, which could initiate a new uptrend. The rising moving averages and the RSI in positive territory suggest an advantage to the bulls.
This positive view will be invalidated if the bulls fail to defend the breakout level during the next test. If the price gets stuck below the neckline, this will be a sign of weakness.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move carries risk, you should conduct your research when making a decision.
