The S&P 500 and the Nasdaq Composite fell to a new year-to-date low last week and closed the week with a loss of 1.55% and 3.11% respectively.
The scenario changed drastically on Oct. 17 after earnings season ramps up and a sharp policy reversal from UK finance minister Jeremy Hunt added detail to the government’s plan to fix his predecessor’s (Kwasi Kwarteng) fiscal package which triggered a record fall in the value of the GBP and a near liquidation of pension plans in the United Kingdom.
At the time of writing, the Dow is up 1.78%, while the S&P 500 and Nasdaq present 2.57% and 3.26% respective gains. Meanwhile, Bitcoin (BTC) has managed to stay well above its year-to-date low showing short-term outperformance.
Some analysts expect that Bitcoin could be closer to a bottom. Twitter trader Alan said that the stochastic indicator on Bitcoin’s monthly chart has reached levels similar to that seen during the 2014 and 2018 bear markets, indicating a likely macro bottom.
Similarly, LookIntoBitcoin creator Philip Swift said in an interview with Cointelegraph that Bitcoin could be close to major cycle lows. Citing various metrics, Swift said that Bitcoin may face another two to three months of pain but should start its outperformance in 2023.
As Bitcoin sustains above its June low, select altcoins are attracting buyers. Let’s look at the charts of five cryptocurrencies that look interesting in the near term.
BTC/USDT
Bitcoin broke above the 50-day simple moving average ($19,689) on Oct. 14 but the higher levels attracted heavy selling by the bears. That pulled the price back below the 20-day exponential moving average ($19,387).
Buyers are trying to defend the immediate support at $18,843 but the recovery could face resistance at the 20-day EMA and then at the downtrend line. If the price turns down from the overhead resistance, the possibility of a break below $18,843 increases. The pair could then plummet to the $18,125 to $17,622 support zone.
To avoid this catastrophe, the bulls will have to force the price above the downtrend line. If they manage to do that, the BTC/USDT pair could rally to $20,500. A break above this resistance could signal the start of a relief rally to $22,800.
The pair has been stuck between $18,125 and $20,500 for some time. If bulls push the price above the moving averages, the pair could climb up to $20,000 and then to $20,500. The bears may mount a strong resistance at this level but if bulls overpower them, the recovery could pick up speed.
Another possibility is that the price turns down from the moving averages and drops below the support at $18,843. That could intensify selling and the pair could then plunge to the support at $18,125. The bulls are expected to defend this level with vigor.
MATIC/USDT
Polygon (MATIC) has been attempting to rise above the downtrend line for the past few days. Although the bears successfully defended the overhead resistance, they could not keep the price down on Oct. 13. This suggests that bulls are buying the dips as they anticipate a move higher.
If the price climbs above the downtrend line, the short-term trend could tilt in favor of the bulls. The MATIC/USDT pair could then attempt a rally to $0.94. This level may again act as a strong barrier but if bulls overcome it, the pair could rally to $1.05.
Alternatively, if the price once again turns down from the downtrend line, the bulls may give up and the pair could then drop to $0.69. The bears will have to pull the price below this level to start a deeper correction to $0.62 and then to $0.52.
The downtrend line has been witnessing a tough battle between the bulls and the bears. Although the bears have come out on top, the bulls are not willing to give up. They aggressively purchased the drop to $0.71 and are again trying to push the pair above the downtrend line.
The 20-EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If bulls push the price above the 50-SMA, the pair could challenge the downtrend line. A break above this resistance could clear the path for a possible rally to $0.86.
On the other hand, buyers may bail out of their position if the price turns down and breaks below $0.77. The pair could then slide to $0.71.
HT/USDT
Huobi Token (HT) started a strong up-move from $4.07 on Oct. 10 that reached $8.20 on Oct. 14, a 101% move within five days. This indicates that bulls are in control.
The sharp rally of the past few days pushed the RSI into deeply overbought territory which may have tempted short-term traders to book profits. That started a correction which could reach the 38.2% Fibonacci retracement level of $6.61.
If the price rebounds off this support, the bulls will try to resume the up-move by pushing the HT/USDT pair above $8.20….
cointelegraph.com