BTC chart pattern bodes well for Arweave, Avalanche, Chainlink, Solana

By: Invezz
Solana Blockchian Cryptocurrency Symbol And Logo

Cryptocurrencies had a strong performance in October as they outperformed key assets like stocks, bonds, and commodities. Bitcoin led the charge as it jumped to the highest level since June last year. At its peak, the coin was up by more than 128% from the lowest point in November last year.

Bitcoin has positive technicals

Bitcoin price jumped because of two key reasons. First, it became a safe haven as risks to the American economy rose. The biggest risk in the economy is the soaring US debt, which has been exploding recently. The total public debt surged to over $33.6 trillion in October, a few weeks after it crossed the $33 trillion level.

Second, the ongoing hope that the Securities and Exchange Commission (SEC) will approve a Bitcoin ETF helped push the coin upwards. Most analysts believe that the agency will approve funds by companies like Blackrock, Invesco, Franklin Templeton, and Ark Invest before the end of the year.

The other important catalyst was that Bitcoin whales continued accumulating the coin. A whale is a person who holds over 100k coins. The most recent data shows that the number of whales has jumped to over 10k, the highest level in months. 

Technicals point to more Bitcoin price outlook. As shown below, the coin has formed a bullish pennant pattern, which is shown in black. The pattern is characterised by a long flag post and a symmetrical triangle pattern. 

Further, the price is consolidating at the 38.2% Fibonacci Retracement level. In most periods, financial assets tend to consolidate when they retest an important Fib level. The coin has also moved above the crucial resistance level at $31,780, the previous YTD high. 

Therefore, I suspect that Bitcoin will have a bullish breakout as buyers target the key resistance at $42,151. This price is about 23% above the current price and is at the 50% retracement point.

Bitcoin price

BTC chart by TradingView

Altcoins and Bitcoin mining stocks to benefit

If this Bitcoin price prediction is correct, it means that other altcoins will do well. Some of the most notable coins to watch will be Arweave, Chainlink, Cardano, Solana, and Avalanche. In most periods, these altcoins tends to have a close correlation with Bitcoin.

Arweave (AR) is a leading player in the crypto storage industry. The token jumped to a high of $6.17 on Tuesday, the highest level since July 23rd. Other top performers are Chainlink, Solana, and Cardano.

In addition to these altcoins, there are other assets that will benefit. For one, Bitcoin mining stocks like Marathon Digital, Riot Platforms, and Hut 8 Mining will rise. In most periods, these companies do well when cryptocurrencies are rising.

Further, the Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO will rise since they have a close correlation.

It's actually scary how closely we're following this.. pic.twitter.com/RJpC99SmuD

— Miles Deutscher (@milesdeutscher) October 30, 2023

The post BTC chart pattern bodes well for Arweave, Avalanche, Chainlink, Solana appeared first on Invezz

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