The lack of a decisive catalyst and the strength of the US dollar index (DXY) has kept the rally in risk assets in check. Bitcoin (BTC) remains trapped inside a tight range, looking for that elusive breakout. The longer Bitcoin spends inside the range, the bigger the eventual breakout will be.
The short-term uncertainty in cryptocurrencies does not seem to have altered the long-term view of institutional investors. BNY Mellon CEO Robin Vince said that a survey commissioned by the bank showed that 91% of institutional investors were willing to invest in some form of tokenized assets in the coming years.
Although some believe that institutions have been slow to enter the cryptocurrency space, Coinbase Senior Advisor John D’Agostino thinks otherwise. Speaking in an interview with SALT, D’Agostino said that “institutional inertia is a very real thing,” but in the case of digital assets, institutional adoption has been “moving very, very fast.”
What are the important support levels that bulls should defend to avoid a breakdown in Bitcoin and select altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
The bears successfully defended the 50-day simple moving average (SMA) ($19,659) on Oct. 17-18. Failure to clear this hurdle may have tempted aggressive bulls to book profits and bears to initiate short positions, attracting price back below the 20-day EMA ($19.384) on October 18.
The sellers will once again try to challenge the immediate support at $18,843. If this level is broken, selling could rise and the BTC/USDT pair could drop to the critical support zone between $18,125 and $17,622. The bears are expected to defend this zone with all their might because a break below could start the next leg of the downtrend.
The first sign of strength will be a breakout and close above the downtrend line, which could attract more buying and take the price to $20,500. The bulls will have to overcome this hurdle to signal a possible short-term trend reversal. Afterwards, the pair could rally towards the next resistance at $22,800.
ETH/USDT
Ether (ETH) re-entered the symmetrical triangle pattern on Oct. 17, but the bulls were unable to sustain the rally. The price turned down on Oct. 18, and the bears are trying to push the price up to $1,263.
The gradually falling 20-day EMA ($1,320) and the RSI in the negative territory suggest that the bears have a marginal advantage. If the price drops below $1,263, the ETH/USDT pair could drop to $1,190.
Conversely, if the price turns up from the current level or the support at $1,263, it will indicate that the lower levels are attracting buyers. The bulls will try to push the price above the resistance line of the triangle.
If they manage to do that, the pair could rally to the downtrend line of the descending channel. A break above this resistance could suggest the end of the downtrend.
BNB/USDT
Although BNB (BNB) has been consolidating between $258 and $300 for the past few days, the bears are trying to gain the upper hand by defending the moving averages.
Sellers will now try to push the price to the $258 range support. Repeated testing of a support level within a short time frame tends to weaken it. If this level gives way, the BNB/USDT pair could plummet to the next support at $216. The gradually falling 20-day EMA ($275) and the RSI near 45 suggest that the bears they have a slight advantage.
Contrary to this assumption, if the price turns up and breaks above the moving averages, the pair could extend its stay inside the range and rally to the overhead resistance at $300.
XRP/USDT
XRP (XRP) rallied and closed above the 20-day EMA ($0.47) on Oct. 17, but the bulls were unable to capitalize on this advantage. This shows that the bears are selling on rallies.
The price turned down sharply and fell below the 20-day EMA on Oct. 18. The selling intensified and the XRP/USDT pair fell to the support line of the triangle. This is an important level to watch in the short term because a break below it could sink the pair to $0.41.
On the upside, the first sign of strength will be a breakout and close above $0.49. Then, the bulls will try to push the price to the upper zone between the resistance line and $0.56. A breakout and close above this zone could signal a resumption of the uptrend.
ADA/USDT
In a strong trend, the relay rally usually lasts between one and three days and that was what happened in Cardano (ADA). The price turned down after a two-day rally on Oct. 18, which indicates that the bears are selling every minor rally.
The bears will try to take their advantage and sink the ADA/USDT pair to the support line of the falling wedge. If this support also breaks, the selling could accelerate and the pair could drop to $0.30.
If the bulls want to avoid a breakdown, they will have to quickly push the price above the 20-day EMA ($0.39). The pair could then rally to the resistance line of the wedge. A break above this level could indicate a possible change in trend.
SOL/USDT
The bulls were unable to push the price to the downtrend line as the bears stopped the rally at the 20-day EMA ($31.40) on Oct. 18. Solana (SOL) has dipped back to the strong support zone between $30 and $29.42.
If the price bounces off the current level, the bulls will once again try to push the SOL/USDT pair towards the downtrend line. The buyers will have to overcome this barrier to open the doors to a possible rally to $35.50.
However, the bears may have other plans. They will endeavor to sink the price below $29.42 and challenge the intraday low of $27.87 made on Oct. 13. This level is likely to attract heavy buying by the bulls, but if the bears manage to break the support, the next stop could be $26.
DOGE/USDT
Dogecoin (DOGE) broke out of the 20-day EMA ($0.06) on Oct. 18, but was met with strong opposition at the 50-day SMA ($0.06). This suggests that sentiment remains negative and traders are selling on minor rallies.
The bears will try to sink the price to the support near $0.06. The bulls had successfully defended this level on two previous occasions; therefore, they will try again to repeat their performance.
If the price bounces off the support, the pair could go back up to the moving averages. Buyers will have to break through this barrier to set up a rally to $0.07.
Conversely, if the price breaks below the support, the DOGE/USDT pair could drop to the June low near $0.05. The bulls are expected to defend this level with all their might.
DOT/USDT
The buyers failed to push Polkadot (DOT) above the 20-day EMA ($6.27) on Oct. 17-18, which indicates that the bears are vigorously defending this level.
The sellers will try to further consolidate their advantage by pulling the price below the vital support of $6. If successful, the selling could accelerate and the DOT/USDT pair could drop to $5.68. If this level also breaks, the next stop could be $5.36.
Alternatively, if the price bounces off $6 hard, it will indicate that the bulls are piling on the dips. The buyers will once again try to break above the overhead hurdle at the 20-day EMA and push the price back towards $6.64.
MATIC/USDT
Polygon (MATIC) broke out and closed above the downtrend line on Oct. 17. This indicates the beginning of a short-term sustained recovery.
The MATIC/USDT pair could rally to $0.94 where the bears can mount a strong defense. If the price turns down from this level but bounces off the 20-day EMA ($0.81), it will suggest that the sentiment has turned positive and traders are buying the dips. That could improve the prospects for a rally to $1.05.
Alternatively, if the price turns down and breaks below the moving averages, it will suggest that the recent breakout may have been a bull trap. The pair could then drop to $0.69.
SHIB/USDT
The Shiba Inu (SHIB) rally fizzled out near the 20-day EMA ($0.000011) and the price has declined to strong support at $0.000010.
The downsloping moving averages and the RSI below 37 suggest that the bears have the upper hand. If the price breaks below $0.000010, the SHIB/USDT pair could drop to $0.000009 and then to the crucial support at $0.000007.
If the bulls want to prevent the pair from going downhill, they will have to quickly push the price above the 20-day EMA. The pair could then rally to the 50-day SMA ($0.000011) and then $0.000014.
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