Stock markets glowed green at the weekly open and cryptocurrency prices followed.
After two consecutive weeks of gains, the S&P 500 Index (SPX) started the week on a positive note. This suggests risk-on sentiment, which is a bullish sign. Volatility is likely get up as 11% of S&P 500 companies are expected to report results this week.
Risk sentiment could increase buying interest in select cryptocurrencies. One area where bullish activity is seen is the Grayscale bitcoin Trust (GBTC). Grayscale’s legal victories have reduced GBTC’s discount to its lowest level since 2021. This indicates that investors are factoring in the possibility of the trust eventually becoming a bitcoin (btc) spot ETF.
When the price fails to fall below support levels on bad news and rises above overhead resistance on favorable news, it shows that the shorts are running out of confidence. This increases the probability of an upward movement in the short term.
What are the important bitcoin and altcoins overall resistance levels that need to be crossed to start an uptrend? Let’s analyze the graphs to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) turned down from the 50-day simple moving average (4,401) on October 12, but the bears were unable to sink the price below the important 4,325 level.
The 20-day exponential moving average (4341) is flattening and the Relative Strength Index (RSI) is just above the midpoint, suggesting that the bulls have a slight advantage.
Buyers will try to push the price above the upper resistance zone between the 50-day SMA and the downtrend line. If this zone is exceeded, the index will signal the end of the corrective phase.
On the contrary, if the price declines and falls below 4.325, it will indicate that the bears are fiercely defending the 50-day SMA. The index could then retest the fundamental support at 4,216.
US Dollar Index Price Analysis
The US Dollar Index (DXY) corrected from 107.34 on October 3 and fell to the 20-day EMA ($106) on October 10. In an uptrend, traders typically buy the dips to the 20-day EMA.
Here too the bulls bought the dip to the 20-day EMA, which initiated a bounce. The bulls will try to push the price above the 107.34 to 108 resistance zone. If successful, the index could start a strong rally towards 111.
However, the bears are unlikely to give up easily. They will try to protect the upper zone and push the price below 105.50. If this support is broken, the index may fall to the 50-day SMA ($104.81). This is an important level for the bulls to defend if they want to keep the bullish movement intact. Below this level, the index could fall to 103.
bitcoin price analysis
After trading between the moving averages for the past few days, bitcoin made a decisive move on October 16 when the bulls lifted the price above the 20-day EMA ($27,224).
The momentum accelerated further and the btc/USDT pair shot above the $28,143 resistance. However, the euphoria was short-lived as the bears aggressively sold to higher levels and pushed the price back below $28,143.
The 20-day EMA began to rise and the RSI jumped into positive territory, indicating that the bulls have a slight advantage. If buyers achieve a close above $28,143, the pair may advance towards $30,000 and then towards $31,000.
On the downside, a break and close below the 50-day SMA ($26,715) will tilt the advantage in favor of the bears. The pair may fall first to $26,000 and then to $24,800.
Ether Price Analysis
Ether (eth) has been fluctuating between $1,531 and $1,746 over the past few days. Generally, in a range, traders buy near support and sell at resistance.
Buyers bought the dip to $1,521 on October 12, starting a relief rally. The bulls attempted to push the price above the moving averages on October 16, but the long wick of the candle shows aggressive selling by the bears.
If the price turns down from the current level, the bears will make one more attempt to sink and keep the price below $1,521. If they succeed, the eth/USDT pair may collapse to $1,368.
On the contrary, the bulls will once again try to push and maintain the price above the moving averages. If they can achieve this, the pair could jump to $1,746. This level is again likely to witness heavy selling by the bears.
BNB Price Analysis
BNB (BNB) recovered from the strong support at $203 and broke above the downtrend line on October 16. However, the long wick on the candle shows that the bears are selling on the rallies.
The 20-day EMA ($210) has stabilized and the RSI is above the midpoint, suggesting that the bearish momentum is weakening.
The bulls will again try to take advantage of this situation and push the price above the downtrend line. If they can sustain the higher levels, they will invalidate the bearish descending triangle pattern. The BNB/USDT pair may rise to $235 and then $250.
This bullish view will be nullified if the price declines and falls below the vital support of $203. The pair could then fall to $183.
XRP Price Analysis
XRP (XRP) has been stuck within the wide range between $0.41 and $0.56 for the past few days. The bulls are attempting to initiate a pullback, which will likely encounter strong resistance at the moving averages.
If the price turns down from the moving averages, it will suggest that every small relief rally is being sold. That will increase the possibility of a drop to $0.46. If this level also does not hold, the XRP/USDT pair may decline to $0.41.
On the contrary, if the bulls push the price above the moving averages, it will indicate strong buying at lower levels. Afterwards, the pair will try to rise to $0.56. The bears are expected to protect this level vigorously.
Solana Price Analysis
Solana (SOL) broke through the short-term resistance of $22.50 on October 16, indicating that the bulls are trying to take control.
The bulls pushed the price to the neckline of the inverse head and shoulders pattern but were unable to scale the level. This is an important resistance to watch because a close above it will complete the bullish setup. The SOL/USDT pair can then start an upward move to $27.12 and then to the pattern target of $32.81.
If the bears want to avoid the upside, they will have to quickly drag the price below the 50-day SMA ($20.56). The pair could then fall to $18.50.
Related: Mining btc is harder than ever: 5 things you should know about bitcoin this week
Cardano Price Analysis
Cardano (ADA) bounced off the strong support near $0.24, indicating that the bulls are fiercely defending this level.
Immediate resistance to the upside comes from the moving averages. Buyers tried to overcome this hurdle on October 16, but the long wick of the candle shows selling at higher levels. If the bulls do not give up much ground from the current level, prospects for a rally above $0.28 will improve. This level may act as resistance again, but if broken, the ADA/USDT pair could reach $0.30.
The important level to watch on the downside is $0.24. If the price turns down from the moving averages, the probability of a drop below $0.24 will increase. A break below this crucial support could sink the pair to $0.22 and subsequently $0.20.
Dogecoin Price Analysis
Dogecoin (DOGE) recovered to the breakout level of $0.06 on October 14, indicating that lower levels are attracting buyers.
The 20-day EMA ($0.06) is flattening and the RSI is near the midpoint, indicating that selling pressure may be reducing. If the buyers push and sustain the price above the moving averages, it will suggest the start of a new bullish move to $0.07. This level may act as a tough hurdle again, but if overcome, the DOGE/USDT pair could reach $0.08.
Alternatively, if the price turns down from the current level, it will suggest that the pair may extend its stay within the $0.055 to $0.06 range for some time longer.
Toncoin Price Analysis
Toncoin (TON) has been trading below the moving averages since October 12, but a positive sign is that the bears have been unable to capitalize on this weakness. This indicates a lack of sales at lower levels.
The bulls tried to push the price back above the moving averages, but the long wick on the candle shows that the bears are in no mood to give in. Sellers will again try to sink the price below $1.89 and start a deeper correction. The next support on the downside is at $1.80 and then $1.60.
If the bulls want to signal a comeback, they will have to push and maintain the price above the moving averages. The TON/USDT pair could rise first to $2.20 and then to $2.31.
