Altcoins are selling off ahead of this week’s Bitcoin ETF launch, perhaps a sign that traders are anxious
Altcoins are selling off ahead of this week’s Bitcoin ETF launch, perhaps a sign that traders are anxious about this historic listing.
ProShares Bitcoin Strategy ETF will enter the history books on Oct. 19 when it starts trading on the New York Stock Exchange under the ticker BITO.
Market participants are likely to watch the volumes on the ETF closely to gauge the amount of participation from institutional investors. If the response is tepid for a few days, short-term traders may be tempted to book profits, but the bullish momentum may pick up further if demand remains strong.
The latest CoinShares report for the week ending Oct. 17 shows that institutional inflows into crypto products has pushed the total assets held by institutional managers to a new record high of $72.3 billion. Of the total inflow of $80 million during the week, Bitcoin products attracted the lion’s share at $70 million.
Could the launch of a new ETF boost sentiment and push Bitcoin to a new all-time high or will short-term traders book profits? Is it time for money to flow out of Bitcoin and into altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The long tail on Bitcoin’s Oct. 17 candlestick shows strong buying on dips. The bulls attempted to push the price above the Oct. 15 high at $62,933 today but failed. This suggests that bears are defending the zone between $62,933 and $64,854 with vigor.
If sellers sink the price below $58,963, the BTC/USDT pair could drop to the 20-week exponential moving average ($55,118). A strong rebound off this support will indicate that sentiment remains positive and traders are buying on dips.
The bulls will then make one more attempt to clear the overhead obstacle. If they succeed, the pair could start the next leg of the uptrend that could reach $70,000 and then $75,000.
If the 20-day EMA support is breached, the pair could drop to the breakout level at $52,920. This is an important support to keep an eye on because if it cracks, the pair may plummet to the 50-day simple moving average ($49,270).
ETH/USDT
The bulls successfully defended the neckline of the inverse head and shoulders (H&S) pattern on Oct. 17 but they could not sustain the rebound. This suggests that demand dries up at higher levels. The bears have again pulled Ether (ETH) to the neckline of the setup today.
A break below the neckline could result in a decline to the 20-day EMA ($3,563). The rising moving averages and the relative strength index (RSI) in the positive territory indicate that buyers have the upper hand.
If the price rebounds off the 20-day EMA with strength, it will suggest that traders continue to accumulate on dips. The buyers will then make one more attempt to clear the overhead hurdle at $4,027.88.
If they manage to do that, the ETH/USDT pair could retest the all-time high at $4,372.72. Alternatively, if bears sink the price below the moving averages, the pair could correct to $3,200.
BNB/USDT
Binance Coin (BNB) is struggling to take off after completing the inverse H&S pattern on Oct. 13 but a minor positive is that bulls have not allowed the price to sustain below the neckline of the setup.
The 20-day EMA ($439) is rising and the RSI is above 64, signaling that the path of least resistance is to the upside. If bulls push the price above $484.70, the BNB/USDT pair could rise to $518.90.
This level may act as a stiff resistance but if bulls overcome this obstacle, the pair could rally to the pattern target at $554.
Contrary to this assumption, if the price turns down and breaks below the moving averages, it will suggest that bears are back in the game. The pair could then drop to $392.20.
ADA/USDT
Cardano (ADA) is trading inside a symmetrical triangle pattern, which suggests indecision among the bulls and the bears about the next directional move.
The 20-day EMA ($2.20) is sloping down gradually and the RSI has dropped near 43, suggesting a minor advantage to bears. If sellers sink the piece below the support line of the triangle, the ADA/USDT pair could drop to $1.87.
This level could attract strong buying from the bulls. A breakout and close above the resistance line of the triangle will indicate that bulls have absorbed the supply and made a strong comeback.
The pair could then rally to $2.47, which may act as a resistance but if the bulls overcome this obstacle, the up-move may extend to $2.80.
XRP/USDT
XRP’s attempt to rise above the overhead resistance at $1.24 fizzled out at $1.18 on Oct. 16. This may have attracted profit-booking by short-term traders, resulting in a drop below the moving averages on Oct. 17.
The long tail on the day’s candlestick shows that bulls…
cointelegraph.com