Key points:
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Bitcoin witnessed the biggest long liquidation of the year, indicating that bulls are losing their grip over the market.
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Several altcoins are striving to hold on to their support levels but may face solid selling on rallies.
Bitcoin (BTC) fell to $111,800 on Monday but has since then recovered above the $112,700 level. The nasty fall was due to liquidation of leverage positions. CoinGlass said in a post on X that traders faced $1.62 billion in long liquidations in 24 hours, which was the biggest long liquidation of this year.
Select analysts are not perturbed by the fall as they anticipate BTC to turn around and charge higher in October. Since 2013, BTC has risen 10 out of 12 times in October; the last loss was way back in 2018, according to CoinGlass. BTC could hit a new all-time high in October if history repeats itself.
Another positive for the markets is the policy shift by the US Federal Reserve. Economist Timothy Peterson told Cointelegraph that the markets are underpricing the possibility of rapid rate cuts, and when the surprise effect kicks in, it could “jolt Bitcoin and alts up substantially,” in the next 3-9 months.
Could BTC and altcoins hold on to their respective support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
S&P 500 Index price prediction
The S&P 500 Index (SPX) hit another new all-time high on Monday, signaling sustained buying by the bulls.
The rally could reach 6,700, where the bears may mount a strong defense. Any dip is likely to find support at the 20-day exponential moving average (6,550). If the price rebounds off the 20-day EMA and breaks above 6,700, the next stop could be the 7,000 level.
Sellers will have to tug the price below the 50-day simple moving average (6,430) to weaken the bullish momentum. If they do that, the index could start a deeper correction to 6,343 and then to 6,200.
US Dollar Index price prediction
The US Dollar Index (DXY) rebounded off the 96.37 support on Wednesday, indicating that the bulls are fiercely defending the level.
The recovery is expected to face selling at the moving averages. If the price turns down sharply from the moving averages, the bears will make one more attempt to sink the index below the 96.37 support. If they can pull it off, the index could extend the downtrend to the 95 level.
Conversely, a break and close above the moving averages suggests that the buyers are trying to form a double bottom at 96.37. The index may recover to 99 and then to 100.50.
Bitcoin price prediction
BTC’s failure to rise above the $117,500 resistance may have attracted selling by short-term investors, which accelerated after the price broke below the moving averages.
The flattish moving averages and the relative strength index (RSI) just below the midpoint suggest a range-bound action in the near term. Buyers are expected to defend the support of the range at $107,000 because a break below it may sink the BTC/USDT pair to $100,000.
A break and close above $117,500 on the upside signals that the bulls are attempting a comeback. The Bitcoin price may then ascend to the $124,474 resistance. Buyers will have to pierce the $124,474 level to open the gates for a rally to $141,948.
Ether price prediction
Ether (ETH) plummeted below the support line of the symmetrical triangle pattern on Monday, indicating that the bears have overpowered the bulls.
The ETH/USDT pair has reached the $4,060 level, which is likely to attract solid buying from the bulls. Any recovery attempt is expected to face selling at the 20-day EMA ($4,442). If the Ether price turns down from the 20-day EMA, the risk of a break below $4,060 increases. The pair could then decline to $3,745 and later to the pattern target of $3,426.
This negative view will be invalidated in the near term if the price turns up and breaks above the resistance line. That suggests a range-bound action between $4,060 and $4,957 for a few days.
XRP price prediction
XRP (XRP) plunged to the $2.69 support on Monday, signaling that the bears are trying to seize control.
The long tail on the candlestick shows aggressive buying at $2.69. If buyers want to make a comeback, they will have to swiftly propel the XRP price above the downtrend line. If they do that, the XRP/USDT pair may ascend to $3.40.
On the contrary, the pair will complete a bearish descending triangle pattern if the price closes below $2.69. That tilts the advantage in favor of the bears and increases the risk of a drop to $2.20.
BNB price prediction
BNB (BNB) turned down from the all-time high of $1,083 on Sunday, indicating profit booking by the short-term buyers.
cointelegraph.com