Bitcoin Rally Sparks $42B Demand in Proof-of-Work Sector: LTC, BCH, KAS, DOGE, BTC Price Analysis

BTC Price Analysis:

Bitcoin price peaked at $68,876 on Friday Oct 18, extending its 8-day timeframe gains above the 17% mark. Litecoin (LTC), Bitcoin Cash (BCH), and Kaspa (KAS) have emerged top gainers this week, as the BTC rally has spark increased demand across the Proof-of-Work Sector.

Technical analysis indicators suggests more gains could follow amid rising institutional demand and growing expectations of further US Fed rate cuts in Q4 2024.

Bitcoin Rally Lifts Proof of Work (POW) Sector

On Friday, Oct 18, Bitcoin price gained another 2%, reaching a monthly peak of $68,876. Institutional investors are eyeing Bitcoin as macroeconomic conditions improve, fueled by speculation around the US Federal Reserve’s expected rate cut in the next FOMC meeting in November.

Blackrock CEO Larry Fink, during the company’s Q3 earnings call, emphasized Bitcoin’s potential, attracting corporate investors who are bullish on Bitcoin’s future.

Markets insights shows that Bitcoin rally has spread across to the rest of the broader Proof-of-Work sector.

What is Proof-of-Work?

In crypto, Proof-of-Work coins refer to projects that rely on mathematical problem solving by compute power to validate and record blockchain transactions.

PoW coins have an allure to large investors due to their sophisticated security, transparency and resistance to hacks.

In the wake of Bitcoin rally this week, PoW sector has witnessed significant capital inflows as institutions begin to seek altcoins with potential for larger price movements as positive macroeconomic indicators increase investors risk appetite.

According to Coingecko data, Proof-of-Work sector trading volume surged to $42.4 billion on Friday, Oct 18, driving the performance of top PoW coins such as Bitcoin, Dogecoin, Litecoin, and Bitcoin Cash.

Bitcoin itself posted a strong 10.3% gain this week, but the spotlight fell on Dogecoin, which surged by 25%, followed by Bitcoin Cash at 11.8% and Litecoin with 11.4% gains.

Let’s delve deeper into the technical and fundamental factors driving these top PoW coins

Bitcoin Price Forecast: A Close above $68k Could Usher in $70k Weekend Rally

Bitcoin’s bullish momentum is building, with the digital asset currently trading at $68,691, up 2.1% in the last 24 hours and 10.3% over the past week.

This marks a strong recovery from the September correction, where BTC briefly dipped below $60,000. The October rally has been driven by a combination of renewed institutional demand, improved macroeconomic conditions, and increased demand from Bitcoin ETFs..

From a technical standpoint, Bitcoin is testing the upper boundary of its Bollinger Bands, which typically indicates a sustained bullish momentum.

Currently trading above the midpoint of the bands, BTC has shown resilience in holding its gains, with the balance of power (BoP) suggesting neutral to weak buying pressure. However, a breakout above key levels could signal further upside.

Bitcoin faces immediate resistance at $69,500, a level that, if breached, could open the door for a weekend rally toward $70,000 or even higher. Traders will be eyeing $70,000 as a psychological threshold, and clearing this level could lead to a test of $72,000, especially if institutional demand intensifies.

On the downside, Bitcoin’s support lies at $66,500, and should it slip further, $65,000 would serve as a critical safety net. As long as Bitcoin remains above these support zones, the broader bullish trend is expected to hold.

Dogecoin Price Forecast: DOGE Rally Could Extend Above $0.15

Dogecoin (DOGE) has been the standout performer among proof-of-work cryptocurrencies this week, with a 25% surge over the past seven days. Currently trading at $0.1386, DOGE has gained 13% in the last 24 hours alone, marking a swift rebound from early October when it was priced below $0.11.

This resurgence has been primarily driven by renewed retail interest, coupled with a series of indirect mentions from Elon Musk that have kept Dogecoin in the spotlight.

In addition to retail enthusiasm, there has been increased speculation about the potential for Dogecoin to be integrated as a payment option on various platforms, enhancing its utility. With growing media attention, the meme coin is regaining its appeal as a viable digital currency.

On the technical front, Dogecoin’s breakout from its recent consolidation phase has pushed it above its upper Bollinger Band, a sign of strong upward momentum.

The relative strength index (RSI) is hovering near 74.75, suggesting that the market may be entering overbought territory. Despite this, DOGE’s price action indicates that there is still room for further gains.

The next resistance level for Dogecoin lies at $0.145, and a successful breach could see the price target $0.15, a crucial psychological level. Should DOGE manage to clear this, the next objective would be $0.16.

On the downside, support is anchored at $0.13, and if the price were to retreat further, $0.12 would likely offer another layer of defense. As long as DOGE remains above $0.13, the overall bullish structure should remain intact, driven by continued retail demand.

Litecoin Price Forecast: ETF Speculation Drives LTC Toward $75

Litecoin (LTC) has enjoyed a robust 11.4% rise over the past week, with the price now sitting at $72.75. LTC has broken above the critical $70 resistance level, fueled by talks of a potential Litecoin ETF launch, by Canary Capital Group.

Investor sentiment has become increasingly bullish, with many positioning for further upside amid growing speculation that Litecoin could follow in Bitcoin’s ETF footsteps.

While Bitcoin ETFs have dominated headlines, the possibility of an ETF tailored to Litecoin has started to gain traction. An ETF approval for LTC would provide institutional investors with a regulated avenue for exposure, potentially leading to a significant capital inflows.

Litecoin price chart above shows a clear breakout above $70, signaling strong upward momentum. The Parabolic SAR confirms the bullish trend, while the Detrended Price Oscillator (DPO) remains in positive territory, reinforcing the bullish bias. As Litecoin continues to rally, the next target lies at $75, a level that, if broken, could propel LTC toward $80.

With ETF speculation acting as a primary catalyst, a move toward $80 is plausible, especially if broader market conditions remain favorable.

On the downside, Litecoin’s support is firm at $70, and if a pullback occurs, $68 should provide additional cushioning. As long as Litecoin stays above $70, the bullish outlook is expected to persist, with technical indicators pointing toward further gains.

Bitcoin Cash Price Forecast: BCH Bulls Eye $380 Target

Bitcoin Cash (BCH) has experienced an impressive 11.8% surge this week, currently trading at $363.82. After successfully breaking above the $360 resistance level, BCH has continued its recovery from recent lows, buoyed by a broader market rally and growing institutional interest in proof-of-work (PoW) assets.

Much of the attention surrounding BCH can be attributed to its role as an undervalued PoW asset, with investors seeking alternatives to Bitcoin’s steep valuations. Additionally, Bitcoin Cash has been attracting miners due to its lower difficulty and higher profitability relative to Bitcoin, contributing to its upward momentum.

From a technical standpoint, Bitcoin Cash has broken out above its midline Bollinger Band and is currently testing the upper boundary, signaling continued bullish momentum. The balance of power (BoP) suggests moderate buying pressure, indicating that BCH still has room to grow.

The next resistance level for BCH sits at $370, and a successful move past this could target $380.

If Bitcoin’s broader rally continues to lift other PoW assets, BCH could push even higher toward $400. Support for BCH is seen at $350, and should it fall below this, $340 offers an additional cushion. As long as Bitcoin Cash holds above $350, the bullish trend is likely to persist, driven by favorable market dynamics.

Kaspa Price Forecast: KAS Bulls Eye $0.14 Recovery

Kaspa (KAS), one of the newer proof-of-work cryptocurrencies, is currently trading at $0.1317 after a 6.0% gain on Oct 18. Despite lagging behind its PoW peers in recent weeks, Kaspa has shown resilience, recovering from its recent lows. Although KAS has posted a 4.2% loss over the past seven days, its rebound is a promising sign for a potential trend reversal.

Kaspa’s innovative use of proof-of-work consensus to address blockchain scalability issues has attracted investor interest, positioning it as a high-potential asset within the PoW space. As the market matures, KAS could benefit from broader adoption.

Technically, Kaspa has bounced off its key support level at $0.13, with the RSI showing positive divergence. This suggests a potential bullish reversal is underway. The RSI is currently at 55, indicating that there is ample room for further upside without entering overbought territory.

The next resistance for KAS is at $0.14, and if the price can break above this level, it may signal a continuation of the recent uptrend. If KAS fails to clear $0.14, it will likely consolidate near its support at $0.13, but maintaining this level would preserve the broader bullish setup.

Recap:

In summary, the recent price action across major proof-of-work (PoW) cryptocurrencies suggests continued bullish momentum, with Bitcoin aiming for a decisive break above $70,000.

Dogecoin’s surge above $0.13 reflects renewed retail enthusiasm, while Litecoin’s ETF speculation fuels its rise toward $80. Bitcoin Cash’s rally positions it for further gains, with $380 and $400 as potential targets.

Kaspa, despite lagging in recent weeks, has shown resilience, with its current support at $0.13 holding firm and potential gains ahead.

Across the board, key resistance levels remain critical for confirming these bullish trends, while holding above support zones will be crucial for sustaining the momentum into the coming weeks.