Bitcoin (BTC) and Ether (ETH) have both seen aggressive profit booking after hitting their respective new all-time highs. This suggests that traders who bought on rumors of a Bitcoin Exchange Traded Fund made profits after ProShares’ successful launch of the Bitcoin Strategy Exchange Traded Fund (ETF) (BITO).
The bulls attempted a rebound in Bitcoin following the launch of the second BTC futures-linked ETF by digital asset manager Valkyrie on October 22nd, but encountered strong selling pressure at higher levels. The sale raised greed in the Crypto Fear and Greed Index from 84 on October 21st to 75 on October 22nd.
Daily performance of the cryptocurrency market. Source: Coin360
JPMorgan Chase strategists said in a note that BITO “is unlikely to trigger a new phase with significantly more fresh capital in Bitcoin” and that the hype about the product could subside after a week. The strategists pointed out that capital has been shifting from gold ETFs to Bitcoin funds since September and that this “supports a bullish outlook for Bitcoin until the end of the year”.
Could Bitcoin and Ether experience a deep correction and what critical support levels should one look out for? Let’s check out the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin hit a new all-time high of $ 67,000 on October 20, but the bulls were unable to sustain the breakout as the bears pushed the price back below the breakout level of $ 64,854 on October 21. This suggests that the sellers are trying to catch the aggressive bulls.
BTC / USDT daily chart. Source: TradingView
The bears attempted to rebound on October 22nd, but the long wick on the candle of the day shows that traders are selling on small rallies. The strong support to watch on the downside is the 20-day exponential moving average (EMA) ($ 57,778).
If price rebounds from this support, it suggests sentiment will remain positive and traders will buy on dips. This increases the possibility of a break above the overhead resistance zone between $ 64,854 and $ 67,000. The pair could then climb to $ 75,000.
Conversely, if the price falls below the 20-day EMA, selling could accelerate and the BTC / USDT pair could fall to the 50-day simple moving average (SMA) ($ 50,496).
ETH / USDT
Ether broke, closing above the overhead resistance at $ 4,027.88 on October 20. Another strong move followed on October 21, pushing the price down to $ 4,375, just above the previous all-time high of $ 4,372.72.
ETH / USDT daily chart. Source: TradingView
However, the long wick and negative October 21 close indicate that traders may have sold aggressively near the all-time high. The bears are trying to keep the price below the breakout level of $ 4,027.88.
The rising 20-day EMA ($ 3,712) and Relative Strength Index (RSI) in positive territory suggest that the bulls remain in charge. If the price bounces off current levels, the bulls will make another attempt to push the ETH / USDT pair to a new all-time high.
A break and close below the neckline of the inverse head and shoulders (H&S) pattern could signal the possible beginning of a deeper correction to USD 3,200.
BNB / USDT
Binance Coin (BNB) has fallen from $ 505.90, showing that bears are defending overhead resistance at $ 518.90. The altcoin failed to hit the 20-day EMA ($ 455) which is expected to provide strong support.
BNB / USDT daily chart. Source: TradingView
If the price bounces off the 20-day EMA, the BNB / USDT pair could make another attempt to break the overhead hurdle at $ 518.90. If they do, the pair could rebound towards the pattern target at $ 554.
The rising 20-day EMA and the RSI in positive territory show that the bulls have the upper hand. That advantage could shift in favor of the bears if the price goes down and falls below the moving averages. Sales could intensify further on a break below $ 392.20.
ADA / USDT
Cardano (ADA) broke the 20-day EMA ($ 2.18) on October 21, but the bulls were unable to push the price above the resistance line of the symmetrical triangle pattern. This suggests that bears are vigorously defending this level.
ADA / USDT daily chart. Source: TradingView
The sellers are currently trying to bring the price below the triangle’s support line. If they are successful, it indicates that the downward balance between the bulls and the bears has broken.
The ADA / USDT pair could then slide to the strong support at $ 1.87. A break and close below this level could panic selling. The break and close above the triangle is the first sign that the bulls are back in the game. The pair could then climb to $ 2.47 and gain momentum above this resistance.
XRP / USDT
Ripple (XRP) returned from the downtrend line on October 21, suggesting the bears are aggressively defending this level. On the flip side, the bulls are trying to keep the price above the moving averages.
XRP / USDT daily chart. Source: TradingView
If the price recovers from current levels, the bulls will try again to push the XRP / USDT pair above the downtrend line. If they do that, the pair could rise to $ 1.41. A break and a close above this resistance could push the price down to $ 1.66.
The flat moving averages and the RSI near the middle suggest the pair may stay in the range for a few days. A break and close below $ 1 will pave the way for a possible drop to the strong support at $ 0.85.
SOL / USDT
Solana (SOL) broke and closed above the overhead resistance zone between $ 171.47 and $ 177.79 on October 21. This completed a bullish ascending triangle pattern that has a target target of $ 226.94.
SOL / USDT daily chart. Source: TradingView
The bears could be challenging at the current all-time high of $ 216, but the strong momentum over the past three days shows that the bulls are aggressively buying at higher levels. A break and close above USD 216 signals the resumption of the uptrend.
Conversely, if the SOL / USDT pair breaks down from $ 216, a retest of $ 177.79 is possible. If the price rebounds from these levels, it suggests that the bulls will continue to buy on dips. The bulls will then try again to continue the uptrend.
A break and close below $ 171.47 signals that bullish momentum may have weakened.
DOT / USDT
Polkadot (DOT) broke immediate resistance at $ 44.78 on October 20th, indicating a possible resumption of the upside move. The bears attempted to trap the aggressive bulls by pulling the price towards the breakout level at $ 39.02 on October 21, but buyers had other plans.
DOT / USDT daily chart. Source: TradingView
The rising 20-day EMA ($ 38.88) and the RSI near the overbought zone suggest that the bulls have the upper hand. If buyers hold the price above $ 45, the DOT / USDT pair could retest the all-time high at $ 49.78.
This level can act as a tough hurdle, but if the bulls don’t give up much ground, the pair could extend the upside to $ 53.90. The bears must pull the price below the breakout level of $ 38.77 to take the advantage in their favor. The pair could then fall to the 50-day SMA ($ 34.07).
Related: PayPal is seeing its largest bitcoin volume since the BTC price crash in May
DOGE / USDT
Dogecoin (DOGE) continues to encounter strong resistance on the downtrendline, suggesting that bears are aggressively defending this level. On a small positive, the bulls did not allow the price to drop below the 20-day EMA ($ 0.23) and hold.
DOGE / USDT daily chart. Source: TradingView
If the bulls fail to push and hold the price above the downtrend line, the likelihood of a break below the 20-day EMA increases. This could pull the price into the strong support zone at $ 0.21 to $ 0.19. The cops are expected to vigorously defend this zone.
A strong rebound from this support zone will point to a possible range between $ 0.19 and $ 0.27 for a few days. The trend will be in favor of the bulls if the DOGE / USDT pair rises to close above $ 0.27. The pair could then rise to $ 0.32 and then to $ 0.35.
MOON / USDT
The Terra Protocol’s LUNA token rebounded near the overhead resistance at $ 45.01 on October 20, where bears attempted to stop the upward move. Price moved down from the overhead resistance but the bulls defended the breakout level at $ 39.75 on October 21. This shows that the mood has developed positively and traders buy when there is a breakdown.
LUNA / USDT daily chart. Source: TradingView
If the bulls push and hold the price above $ 45.01, the LUNA / USDT pair could retest the all-time high at $ 49.54. This level could be an obstacle again, but if the bulls stop the next decline above $ 45.01, the prospect of a new all-time high will increase. The pair could then climb to $ 60.57.
Contrary to this assumption, if price deviates from current levels or overhead resistance and falls below the 20-day EMA ($ 39.18), the decline could extend to $ 34.86. Sales could intensify below $ 32.50.
UNI / USDT
Uniswap (UNI) broke and closed above the neckline of the inverse H&S pattern on October 20, but the bulls failed to build on that advantage. The bears pulled the price back below the neckline on October 21st.
UNI / USDT daily chart. Source: TradingView
On a small positive, however, the bulls did not allow the price to fall below the 20-day EMA ($ 25.46). This shows that with every small decline, buyers accumulate. If the bulls push the price above $ 28 the UNI / USDT pair could jump to $ 31.41.
This level could act as a strong resistance again, but if the bulls break this barrier the pair could advance to the pattern target at $ 36.98. Conversely, a break below the moving averages could push the price down to the strong support at $ 22. The short term trend will turn negative if this support is broken.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement carries risks. You should do your own research when making a decision.
Market data is provided by HitBTC Exchange.
# support #trap
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