Bitcoin forms bullish pennant as Raydium, Celestia, EOS prices rise

Bitcoin (BTC) price continued its bullish trend in the overnight session after the Federal Reserve decided to leave interest rates unchanged. While the bank left the door for another rate hike wide open, most analysts believe that a prolonged pause followed by a cut will happen.

Bitcoin has done well in this period of high interest rates as it has more than doubled from its lowest point in 2022. In the past, most analysts and investors believed that Bitcoin would crash when interest rates surged. We have seen many companies that thrived in a low-interest rate environment like WeWork and Lordstown Motors go bankrupt. 

There are signs that Bitcoin price will do well in the coming weeks. For one, as shown below, Bitcoin has formed a bullish pennant pattern, which is characterised by a long vertical line and a triangle pattern. 

Most importantly, the Relative Strength Index (RSI) has moved to the overbought level. While this can be seen as a bearish move, it is also a sign that the coin has the momentum it needs.

Bitcoin chart by TradingView

Therefore, as I predicted earlier this week, there is a likelihood that Bitcoin will soon have a bullish breakout. If this happens, the next resistance point to watch will be at $42,200, which is the 50% Fibonacci Retracement level.

Bitcoin is on the move again (following the pattern of previous boom-bust cycles, so far). What to make of it? Let’s revisit my thesis from late 2020: 🧵 pic.twitter.com/gNFtbOScr2

— Jurrien Timmer (@TimmerFidelity) November 1, 2023

Bitcoin rally has inspired big moves in the crypto industry. Celestia (TIA), a new cryptocurrency, has soared by more than 20% in the past 24 hours. In most cases, cryptocurrencies tend to rally after their airdrop. They then pull back as most of the insiders distribute their holdings.

For starters, Celestia is a blockchain project that launched its mainnet this week. The developers bill it as the first modular blockchain network that grows as the number of users expand. 

Raydium (RAY) token also surged by more than 30% as investors moved to Solana’s ecosystem. Solana itself has jumped by over 500% from the lowest point in December last year. Raydium soared as the total value locked (TVL) in its ecosystem rose.

EOS price has also spiked to the highest point since August. It has jumped by more than 24% from its lowest point this year. Unlike other cryptocurrencies, EOS has not made any major headlines recently. As such, its rally is mostly because of its correlation with Bitcoin.

Other cryptocurrencies like AAVE, Uniswap, Neo, and Compound have also joined the crypto rally.