Bitcoin’s reluctance to give up ground has attracted strong buying in select altcoins. B
Bitcoin’s reluctance to give up ground has attracted strong buying in select altcoins.
Bitcoin (BTC) price climbed by 15% last week and 10.45% the week before. The S&P 500 Index dropped 2.53% last week and 2.39% the week before. This shows that Bitcoin has decoupled from the S&P 500 Index in the short term and may chart its own course.
However, the path higher may not be easy. The Federal Open Market Committee’s meeting on Nov. 1 may cause some volatility, but it will li be short-lived as no surprises are expected. CME’s FedWatch Tool projects a 98% probability that rates will remain unchanged.
A large part of the gains in Bitcoin have been fuelled by expectations that the United States Securities and Exchange Commission will approve a spot Bitcoin exchange-traded fund in the near future. Any adverse news in this regard may prove to be a major setback for the bulls. When traders start chasing prices higher, it increases the risk of a short-term pullback.
What are the important support levels on Bitcoin and altcoins that need to hold for the sentiment to remain bullish? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index (SPX) remains in a strong downtrend. The price is close to the strong support zone between 4,050 and 4,100.
The sharp fall of the past few days pushed the relative strength index (RSI) into the oversold territory, suggesting that a pullback may be possible. On the upside, the bears are expected to sell near the 20-day exponential moving average (4,255).
If the price turns down sharply from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then again try to sink the price below the support zone. If they succeed, the index could plummet toward 3,800. This negative view will invalidate in the near term if the price rises and sustains above the 20-day EMA.
U.S. dollar index price analysis
The U.S. dollar index (DXY) rebounded off the 50-day simple moving average (105) on Oct. 24, indicating that lower levels are attracting buyers.
The rising moving averages indicate advantage to buyers but the negative divergence on the RSI suggests that the bullish momentum may be weakening. That could keep the index range-bound between 105.36 and 107.35 for some time.
If buyers maintain the price above the 20-day EMA (106.23), the bulls will attempt to drive the index above 107.35. If they succeed, the index may surge toward 111. If bears want to prevent the upside, they will have to drag and sustain the price back below 105.36. The index may then fall to 104.50.
Bitcoin price analysis
After the sharp rally, Bitcoin has entered a consolidation phase between $33,390 and $35,380. This is a positive sign as it suggests that the bulls are in no urgency to book profits aggressively.
Although the overbought levels on the RSI warrant caution, the rising moving averages suggest that bulls remain in charge. If buyers drive the price above $35,280, the BTC/USDT pair could surge toward $40,000. This level is likely to act as a formidable resistance.
On the way down, if bears sink the price below $33,390, the pair risks a drop to $32,400 and then to $31,000. This zone is likely to witness solid buying by the bulls because if it cracks, the selling could intensify and the pair may plummet to $28,143.
Ether price analysis
Ether (ETH) has been maintaining above the breakout level of $1,746 but the bulls have failed to extend the recovery. This suggests that demand dries up at higher levels.
The ETH/USDT pair may stay range-bound between $1,746 and $1,865 for a few days. The rising moving averages and the RSI in the overbought territory indicate that the bulls have the upper hand.
If buyers kick the price above $1,865, the pair could rally to $2,000. The bears are likely to guard this level with vigor.
The important support on the downside is $1,746 and then the 20-day EMA ($1,705). Sellers will be back in the driver’s seat if they sink and sustain the price below the 20-day EMA.
BNB price analysis
BNB (BNB) has been stuck inside a large range between $235 and $203 for the past several days. The rising 20-day EMA ($219) and the RSI in the positive territory indicate that bulls have a slight edge.
If the price sustains the rebound off $223, the bulls will again try to shove the price above the overhead resistance at $235. If they can pull it off, it will indicate the start of a sustained recovery to $250 and eventually to $265.
Meanwhile, the bears are likely to have other plans. They will try to yank the price back below the 20-day EMA. Such a move will suggest that the BNB/USDT pair may extend its stay inside the range for…
cointelegraph.com
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