In an effort to reduce inflation, the United States Federal Reserve has increased rates aggressively. This has put pressure on U.S. equity markets. Investors have been closely monitoring the inflation figures for signs that it is peaking, but to no avail.
Wholesale prices increased 0.4% during September, surpassing the Dow Jones’ estimate of a 0.2% increase. This indicates that inflation has yet to respond the Fed’s tightening. The Consumer Price Index data, due to be published on October 13, will be the focus of all eyes.
Volatility can be expected to increase for equity traders following the release the numbers. However, for crypto traders it is hard to predict if this trigger will be sufficient to allow Bitcoin ( BTC ) to move out of the $18,500- $24,500 range that it has been trapped in for several days.
What are the key levels that signal a trend in Bitcoin and other altcoins? Let’s look at the charts for the top 10 cryptocurrency coins to see what they are.
Bitcoin is trying to rebound from the $18,843 support, but the relief rally will likely hit a wall at $19,482. This resistance will be broken if the price falls below it.
Breaking below $18,843 could push the price back to the $18,125-$17,622 support zone. The BTC/USDT pair will be defended by bulls. If they fail to do so, it could continue its downtrend. The pair could drop to $15,800 or even to $15,000.
A break above the downtrendline will provide the bulls with some relief. The recovery could accelerate after the pair reaches $20,500. This could open the door to a rally to $22,800.
The price of Ether ( ETH) fell below the symmetrical triangle at Oct. 11. However, it is encouraging that the bulls bought the dip and are now trying to get the price back in the triangle at Oct. 12.
The 20-day EMA ($1,339) has been falling and the relative strength indicator (RSI), is in negative territory. This indicates that bears have taken control. The sellers will attempt to halt the recovery at the 20 day EMA.
It will signal the resumption or decline in the down movement if the price falls below the current level, the 20-day EMA, or both. The ETH/USDT currency pair could fall to $1,109 as the next support.
A break above the triangle will signal strength. This could open the door to a rally towards the resistance line of channel.
BNB created a Doji candlestick structure on Oct. 11, suggesting indecision between the bulls, and the bears. The support level at $266 is being sought by buyers.
The moving averages will likely be a strong resistance for the bounce. The BNB/USDT pair may drop to $258 if the price falls below the current level and the moving averages. This level is expected to be defended vigorously by the bulls, as a break or close below it could cause the pair to sink to $216.
Another possibility is for the price to rise and break above the moving averages. This could open the way for a rally towards the $300 overhead resistance.
The failure of XRP ( XRP), to clear the overhead hurdle at $0.56, on Oct. 9, may have attracted profit booking by short-term traders. This resulted in the price reaching the 20-day EMA ($0.47) Oct. 11.
The rebound that falls below $0.51 will indicate that bulls don’t view the dip as a buying opportunity. This could increase the chances of a break below 20-day EMA. The selling could get more intense and the XRP/USDT price pair could drop to $0.41. This level will be defended by the bulls.
Contrary to what you might think, bulls will continue to push the pair higher than $0.56 if the price rises to $0.51. The pair could rally to $0.66 if they succeed.
Cardano ( ADA ) fell sharply, breaking below $0.40 on October 10. The price fell further on Oct. 10, and was then pulled to $0.38 by more selling on October 11. The next leg of the downtrend begins with a break and close below $0.40.
Buyers have the opportunity to save the situation by pushing the price quickly above the breakdown level at $0.40. This could be a trap for aggressive bears, and the ADA/USDT price could rally to the $20 EMA ($0.42).
If the price drops below $0.40, that will indicate that bears have turned the resistance level into support. This could increase the chances of the downtrend continuing to the next major support at $0.33.
Solana ( SOL), rose above the moving averages Oct. 10, but that proved to have been a bear trap. On Oct. 11, the price fell quickly and fell below $31.65 support.
The drop was purchased by buyers who are trying to get the price above $31.65 at the breakeven point. If they succeed, the SOL/USDT pairing will once again rise to the moving medians. This level is where the bears could try to stop the recovery.
Bears are the dominant force, as the RSI in negative territory and the downsloping moving Averages suggest. Breaking below $30 support could lead to a drop to $26, which is vital for bears.
Dogecoin ( DOGE ) fell close to the support level on Oct. 11. The candlestick’s long tail shows that bulls bought this. The buyers are trying to push prices back above the Oct. 12 moving averages.
The DOGE/USDT pair may rise to $0.07 if they succeed. Although this level could be a barrier once again, bulls can overcome it and the pair could gain momentum to rise towards $0.09.
Alternativly, if the price falls below the moving averages it will indicate that the bears are selling on rallies. This could push the price towards the support at $0.06. The pair could fall to $0.05 if this level is not reached.
Related: Bitcoin price drops on US inflation as Bitcoin futures open-interest hits peak
Polkadot ( DOT), climbed above the 20-day EMA ($6.40), but the bears were aggressively selling at higher levels. This pushed the price below $6.25, the support immediately.
The bears will attempt to bring the price down to $6. This level is crucial for bulls to defend as a crack in the support could signal the resumption or continuation of the downtrend. $5.36 is the next support.
On the upside, the 20-day EMA is the main resistance. Bulls pushing the price higher than this obstacle could lead to a rally to the overhead zone of $6.64 and $5.79 (50-day simple moving average). A breakout above this zone could signal a strong recovery.
The downtrend line was not broken by Polygon ( MATIC), indicating that bears are continuing to defend this level with great vigor. This may have led to short-term traders profit-booking, which pushed the price below $18.00 on Oct. 11.
Buyers are trying stop the decline and get the price above the moving averages. The bulls might attempt to overcome the overhead hurdle at their downtrend line if they succeed. Retesting a resistance level repeatedly tends to weaken it.
The MATIC/USDT pairing could rally to $0.94 if the price breaks above the downtrend line. The pair could fall to $0.75 if it falls below the moving averages and the downtrend line.
Shiba Inu ( SHIB), fell sharply from Oct. 10, when it was at the 20-day EMA ($0.000011) and fell below the immediate support of $0.000010 on October 11. The fact that buying is attracted to lower levels is a minor plus.
The 20-day EMA is sloping downward and the RSI has moved into the negative territory. This is a sign that bears have an advantage. Strong selling could be seen at the 20-day EMA as the current rebound continues. The possibility of the price breaking below $0.000010 is increased if the price moves lower from this resistance. This could lead to the SHIB/USDT pairing beginning its decline towards $0.000007.
Buyers will need to push the price higher than the moving averages in order to avoid this bearish outlook. This could allow for a rise to $0.000014.
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.