Legacy markets continue to negatively impact Bitcoin price, but a positive sign is that the bulls have not a
Legacy markets continue to negatively impact Bitcoin price, but a positive sign is that the bulls have not allowed BTC to retest its June low.
The United States equities markets have started the week on a weak note as investors remain unconvinced that the Federal Reserve will pull back its aggressive monetary policy. The Nasdaq Composite index fell to its lowest level since September 2020.
All eyes will be fixated on the U.S. Consumer Price Index data for September to be released on Oct. 13 as that could influence the Fed’s decision on the size of the rate hike in the next meeting in November.
Depending on how the market perceives the reading, legacy markets and the cryptocurrency markets may witness a pick up in volatility. A minor positive for the bulls is that Bitcoin (BTC) has not tested its June lows and has outperformed the Nasdaq and the S&P 500 in the short term.
A positive trigger could start a strong recovery in Bitcoin and select altcoins. Let’s study the charts of the top 10 cryptocurrencies to determine the key resistance levels to watch out for.
BTC/USDT
Bitcoin broke below the 20-day exponential moving average (EMA) ($19,584) on Oct. 7 and then successfully defended the level between Oct. 8 to 10. The sellers are trying to strengthen their position further by pulling the price below the uptrend line.
If they manage to do that, the BTC/USDT pair could drop to the $18,125 to $17,622 support zone. Buyers are likely to defend this zone with all their might because if they fail to do that, the pair could start the next leg of the downtrend. The pair could then plummet to $15,000.
Contrarily, if the price rebounds off the uptrend line, the bulls will try to push the pair above the moving averages and challenge the downtrend line. A break and close above this level will be the first indication that the bears may be losing their grip. The pair could then attempt a rally to $22,800.
ETH/USDT
Ether (ETH) is struggling to rise above the 20-day EMA ($1,351). This suggests that the bears are selling on rallies and will try to sink the price to the strong support at $1,220.
The gradually downsloping 20-day EMA and the relative strength index (RSI) in the negative territory indicate an advantage to bears. If the price slips below $1,220, the selling could intensify and the ETH/USDT pair may drop to the support line of the descending channel pattern.
Conversely, if the price turns up from the current level and breaks above the 20-day EMA, the pair could rise to $1,410. The bulls will have to push and sustain the price above the channel to signal a potential trend change.
BNB/USDT
BNB has been trading between $258 and $300 for the past several days. The break below the moving averages on Oct. 8 paves the way for a possible decline to the strong support at $258.
If the price rebounds off $258, it will suggest that the range-bound action may continue for some more time. The longer the time spent in the range, the stronger will be the eventual breakout from it.
The next trending move will begin on a break above $300 or a drop below $258. It is difficult to predict the direction of the breakout with certainty. Therefore, it is better to wait for the breakout to happen before taking directional bets.
If the price plummets below $258, the BNB/USDT pair could drop to $216. On the other hand, a break above $300 could push the pair to $342.
XRP/USDT
The bulls tried to push XRP above the overhead resistance of $0.56 but the bears did not budge. The sellers will attempt to pull the price to the 20-day EMA ($0.47).
If buyers want to maintain the upper hand, they will have to buy the dips to the 20-day EMA. If the price rebounds off this support with strength, the likelihood of a break above $0.56 increases. The pair could then resume its uptrend and rally to $0.66.
This positive view could be invalidated if the price turns down and breaks below the 20-day EMA. The XRP/USDT pair could then decline to the breakout level of $0.41. A bounce off this support will indicate that the pair may remain stuck between $0.41 and $0.56 for some time.
ADA/USDT
Cardano (ADA) has been gradually sliding toward the vital support at $0.40. This level has held on two previous occasions; hence, the bulls are again expected to mount a strong defense at this support.
Any rebound is likely to face selling at the 20-day EMA ($0.43) and again at the 50-day simple moving average (SMA) ($0.45). The bulls will have to clear this resistance to indicate the start of a possible sustained recovery. The pair could then rally to the downtrend line.
Instead, if the price breaks below the support at $0.40, it will signal the resumption of the downtrend….
cointelegraph.com