The United States equity markets started this week with a weak note. Investors remain skeptical that the Federal Reserve would reduce its aggressive monetary policies. The Nasdaq Composite index dropped to its lowest level since September 2020.
The U.S. Consumer Price Index data from September will be available on October 13th. This could impact the Fed’s decision about the size of the November rate hike.
The market’s perception of the reading may affect whether the legacy and cryptocurrency markets experience an increase in volatility. The bulls have a minor advantage in that Bitcoin ( BTC) has not reached its June lows, and has outperformed both the Nasdaq 500 and the S&P 500 in short-term.
Positive events could lead to a strong recovery of Bitcoin and other altcoins. Let’s look at the charts for the top 10 cryptocurrency to see the key resistance levels we should be watching out for.
Bitcoin fell below the 20-day exponentially moving average (EMA) on Oct. 7, but then defended it from Oct. 8-10. Sellers are trying to consolidate their position by pushing the price below its uptrend line.
The BTC/USDT pair may drop to the $18,125-$17,622 support zone if they can do so. This zone is likely to be defended by buyers as if failing to do so, the pair may begin the next leg in a downtrend. The pair could plummet to $15,000
Contrary to popular belief, bulls will push the pair higher than the moving averages if they see the price rebounding from the uptrend line. This would challenge the downtrend. If the price breaks or closes above this level, it will indicate that the bears are losing their grip. The bears could attempt to rally to $22,800.
The 20-day EMA ($1,351) for Ether ( ETH ) is not being met. This indicates that the bears will attempt to lower the price to $1,220 by selling rallies.
A bear’s advantage is indicated by the gradually declining 20-day EMA, and the relative strength indicator (RSI), in the negative territory. The selling may intensify if the price falls below $1,220. If this happens, the ETH/USDT exchange rate could drop to the support level of the descending channel pattern.
The pair could reach $1,410 if it rises from its current level and surpasses the 20-day EMA. To signal a possible trend change, the bulls must push the price higher than the channel.
BNB traded between $258-300 over the past few days. Breaking below the Oct. 8 moving averages opens the door to a decline to $258 strong support.
The price rebounding below $258 will indicate that the range-bound action could continue for some time. The likelihood of a breakout is stronger the longer you stay in this range.
A break above $300 or a fall below $258 will be the next trending move. It is hard to predict the direction of the breakout. It is better to wait until the breakout occurs before placing directional bets.
The BNB/USDT pair may drop to $216 if the price drops below $258 A break of $300 could propel the pair to $342.
The bulls attempted to push XRP higher than the $0.56 overhead resistance, but the bears refused to move. The sellers will try to bring the price down to the $20-day EMA ($0.47).
Buyers will need to purchase dips below the 20-day EMA if they want to keep the advantage. The likelihood of the price breaking above $0.56 will increase if the price bounces off this support with strength. The pair could then retrace its upward trend and rally to $0.66.
If the price falls below the 20-day EMA, this positive outlook could be invalidated. If the price falls below the 20-day EMA, the XRP/USDT currency pair could fall to $0.41. The pair could then bounce off of this support, meaning that it may stay between $0.41- $0.56 for a while.
Cardano ( ADA), has been slowly sliding towards the crucial support at $0.40. This level has held twice before; therefore, bulls can expect to defend this crucial support.
A rebound will likely face selling at the 20 day EMA ($0.43), and again at 50-day simple moving Average (SMA), ($0.45). To signal a possible sustained recovery, the bulls must clear this resistance. The pair could rally to the downtrend.
If the price falls below $0.40, it will signify the resumption or continuation of the downtrend. The ADA/USDT currency pair could fall to $0.33, where buying is possible.
For the past few days, Solana ( OL ) has fluctuated between $31.65 to $35.50. The balance between supply/demand is evident in the flattish moving averages as well as the RSI just below its midpoint.
A break above $35.50 overhead resistance will signal strength. The SOL/USDT pair may attempt to rally to $39. This level was where the previous recovery had stopped; therefore, bears will defend it again.
The downside is that the area between $31.65 to $30 will likely attract strong buying from the bulls. Bears will need to bring down the price to $30 if they want to maintain control. This could prolong the decline to $26.
Dogecoin ( DOGE) fell and closed below the 20 day EMA ($0.06) Oct. 8. The bulls failed to push it back above the 50-day SMA ($0.06) Oct. 9.
On Oct. 10, the selling resumed and the bears will attempt to lower the price to $0.06. The support had been defended by buyers on Sept. 19th and again on Sept. 21th. Therefore, the bulls will likely buy the dip to $0.06.
The bulls will push the DOGE/USDT price to $0.07 if the price bounces off the support or current level. A break above $0.07, or below $0.05 could be the next major trending move.
Related: Bitcoin traders anticipate high volatility. Here’s how you can profit from it
For the past few days, Polkadot ( DOT has been consolidating between $6.64 and $6.64. The bears want to cement their advantage by not allowing price to rise above $20 EMA ($6.46).
The DOT/USDT pair may retest $6.25 if the price falls further. The pair could begin the next downtrend if this level is broken. The pair could slide to $5.36.
Bulls will need to push the price higher than the resistance zone at $6.64 and then the 50-day SMA ($6.85) if they want to counter this bearish view. The pair could gain speed and rally towards $8 if they succeed.
The price of Polygon ( MTIC) fell below the downtrend line, but the bears couldn’t sink it below the moving averages. This indicates that bulls are buying dips to the moving-averages.
To indicate a change in the trend, buyers will need to push the price higher than the downtrend line. The MATIC/USDT currency pair could rally to $0.94, where it might again be sold by bears.
If the price falls below its current level, and then breaks below the moving averages it could tip the short-term favor in the bears’ favor. This could lead to a decline in the pair to $0.75, where buying is most likely.
Shiba Inu ( SHIB), broke below the 20-day EMA ($0.000011) Oct. 6. The price was pushed back below the 20-day EMA by buyers on Oct. 9-10, but the bears held firm.
Strong support for the SHIB/USDT pair is found in the $0.000011 to $0.000010 range. The bulls will attempt to push the pair higher if the price bounces off of this zone.
The recovery could be on the rise if the pair breaks and closes above the 50-day SMA ($0.000012) The pair could rise to $0.000014.
Although it may be difficult for bears to lower the price below $0.000010 psychological support, if they do so, the pair could fall towards $0.000007.
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.