Bitcoin's Breakout Above $68K Boosts SOL And DOGE

Bitcoin's Rebound to $68,000 Increases the Potential for a Rally in SOL and DOGE.

Source: www.bitcoinsistemi.com

Bitcoin has dropped just over 2% this week, but a positive sign is that buyers have prevented the price from staying below $65,000. This led to a recovery, pushing Bitcoin above $67,500 on Oct. 27. Kraken analysts believe Bitcoin’s trend should remain constructive as long as it holds above $66,500. 

However, not all are optimistic about Bitcoin’s near-term outlook. Crypto analyst Luca noted that Bitcoin might see another drop to $60K before confirming a local bottom. Several analysts expect an altcoin rally once Bitcoin’s dominance hits 60%. Pseudonymous trader Willy Woo commented that while altcoin season is likely, its intensity will weaken with each cycle after the great 2017 alt bubble. Bitcoin’s rise above $70,000 may present a short-term buying opportunity in altcoins. 

Bitcoin Price Outlook

On Oct 25, sellers attempted to push Bitcoin below the 20-day exponential moving average (EMA) at $66,201, but the bulls held firm, showing that sentiment remains positive and traders are buying the dips. For the uptrend to resume, buyers need to push the price above $69,550, which could propel Bitcoin toward the upper range of $73,777. While $70,000 is a resistance level, it's likely to be surpassed, potentially driving the BTC/USDT pair to $72,000, where strong resistance from the bears is expected.

On the downside, bears will take control if Bitcoin breaks and closes below $65,000. In that case, the pair could drop to the 50-day simple moving average (SMA) at $63,259 and eventually to the critical support at $60,000. On the 4-hour chart, the moving averages have leveled off, and the relative strength index (RSI) is just above the midpoint, suggesting a balance between supply and demand. To signal strength, buyers need to push the price above the downtrend line, which could trigger a rally to $70,000. Alternatively, if Bitcoin breaks and closes below $66,500, the advantage shifts to the bears. The pair could then fall to $65,000, a crucial level to monitor. If that support fails, the pair may drop further to $62,000.

Solana Price Outlook

Solana broke out of an ascending triangle pattern on Oct. 20, and the bulls successfully defended the breakout level during the retest on Oct. 25. The upsloping moving averages and RSI above 65 indicate bullish control. There is minor resistance at $179, but if this level is surpassed, the SOL/USDT pair could rally to $189. Sellers are likely to strongly defend the $189 level, as a breakout could push the price toward $210.

To halt the upward movement, bears will need to quickly pull the price below the 20-day EMA ($161). If they succeed, the pair could drop to the 50-day SMA ($148). Although the bulls have pushed the price above the 20 EMA, the negative divergence in the RSI points to weakening momentum. Bears will aim to stall the recovery at $179, and if the price reverses from this resistance and falls below the 20 EMA, it would suggest that bears are active at higher levels, potentially leading to a retest of the $164 support. However, if bulls break through the $179 resistance, the uptrend is likely to resume, with the pair targeting $189.

Dogecoin Price Analysis

Dogecoin broke out of a symmetrical triangle pattern on Oct. 18, and the bulls successfully defended the pullback to the breakout level on Oct. 25. The 20-day EMA ($0.13) is trending upward, and the RSI is in the positive zone, indicating bullish control. If buyers manage to push and hold the price above the $0.15 resistance, the DOGE/USDT pair could rally to $0.17 and then to $0.19.

On the other hand, if the price reverses from the current level or overhead resistance and falls back into the triangle, it would suggest that the breakout has been rejected by the market. In this scenario, the pair could drop to the 50-day SMA ($0.11). Buyers have successfully pushed the price above the resistance line of the descending channel pattern, signaling a potential short-term trend change. The next goal for the pair will be to rally above the overhead resistance at $0.15. The 20 EMA is a critical support level to monitor on the downside. If the price declines and breaks below the 20 EMA, it would indicate that the breakout from the channel may have been a bull trap, potentially leading the pair to test the channel’s support line.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.