The lack of a decisive catalyst and the strength in the United States Dollar Index (DXY) has kept the recovery of risky assets under check. Bitcoin (B
The lack of a decisive catalyst and the strength in the United States Dollar Index (DXY) has kept the recovery of risky assets under check. Bitcoin (BTC) remains stuck inside a tight range, searching for that elusive breakout. The longer the time Bitcoin spends inside the range, the greater will be the eventual breakout from it.
The short-term uncertainty in cryptocurrencies does not seem to have altered the long-term view of institutional investors. BNY Mellon CEO Robin Vince said that a survey commissioned by the bank showed that 91% of institutional investors were keen to invest in some type of tokenized assets in the next few years.
Although some believe that institutions have been slow to move into crypto, Coinbase senior adviser John D’Agostino thinks otherwise. While speaking in an interview with SALT, D’Agostino said that “institutional inertia is a very real thing” but in the case of digital assets, institutional adoption has been “moving very, very fast.”
What are the important support levels the bulls need to defend to avoid a collapse in Bitcoin and select altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
The bears successfully defended the 50-day simple moving average (SMA) ($19,659) on Oct. 17 and 18. The failure to clear this hurdle may have tempted the aggressive bulls to book profits and the bears to initiate short positions. That pulled the price back below the 20-day exponential moving average ( ($19,384) on Oct. 18.
The sellers will once again try to challenge the immediate support at $18,843. If this level breaks down, the selling could pick up and the BTC/USDT pair could drop to the critical support zone between $18,125 and $17,622. The bears are expected to defend this zone with all their might because a break below it could start the next leg of the downtrend.
The first sign of strength will be a break and close above the downtrend line. That could attract further buying and push the price to $20,500. The bulls will have to overcome this obstacle to signal a possible short-term trend change. The pair could then climb toward the next resistance at $22,800.
ETH/USDT
Ether (ETH) re-entered the symmetrical triangle pattern on Oct. 17 but the bulls could not sustain the recovery. The price turned down on Oct. 18 and the bears are trying to pull the price to $1,263.
The gradually downsloping 20-day EMA ($1,320) and the RSI in the negative territory suggest that bears are at a marginal advantage. If the price slips below $1,263, the ETH/USDT pair could drop to $1,190.
Conversely, if the price turns up from the current level or the support at $1,263, it will indicate that lower levels are attracting buyers. The bulls will then attempt to push the price above the resistance line of the triangle.
If they manage to do that, the pair could rise to the downtrend line of the descending channel. A break above this resistance could suggest the end of the downtrend.
BNB/USDT
Although BNB (BNB) has been consolidating between $258 and $300 for the past several days, the bears are trying to gain the upper hand by defending the moving averages.
The sellers will now try to pull the price to the support of the range at $258. The repeated retest of a support level within a short time tends to weaken it. If this level gives way, the BNB/USDT pair could plummet to the next support at $216. The gradually downsloping 20-day EMA ($275) and the RSI near 45 suggest that bears have a slight edge.
Contrary to this assumption, if the price turns up and breaks above the moving averages, the pair could extend its stay inside the range and rise to the overhead resistance at $300.
XRP/USDT
XRP (XRP) recovered and closed above the 20-day EMA ($0.47) on Oct. 17 but the bulls could not build upon this advantage. This shows that bears are selling on rallies.
The price turned down sharply and slipped below the 20-day EMA on Oct. 18. The selling intensified and the XRP/USDT pair dropped to the support line of the triangle. This is an important level to watch out for in the near term because a break below it could sink the pair to $0.41.
On the upside, the first sign of strength will be a break and close above $0.49. The bulls will then try to drive the price to the overhead zone between the resistance line and $0.56. A break and close above this zone could indicate the resumption of the uptrend.
ADA/USDT
In a strong trend, the relief rally usually lasts between one to three days and that is what happened in Cardano (ADA). The price turned down after a two-day recovery on Oct. 18 indicating that bears are selling on every minor rally.
The bears will try to build upon their advantage and sink the ADA/USDT pair to the support line of the…
cointelegraph.com