The traditional markets continue to negatively affect the price of Bitcoin, but a positive sign is that the bulls have not allowed BTC to retest its June low.
US stock markets have started the week on a weak note as investors remain unconvinced that the Federal Reserve will withdraw its aggressive monetary policy. The Nasdaq Composite Index fell to its lowest level since September 2020.
All eyes will be on the US Consumer Price Index data for September due out on October 13, as that could influence the Fed’s decision on the size of the rate hike in the next meeting in November.
Depending on how the market perceives the reading, the legacy markets and cryptocurrency markets may witness a spike in volatility. A minor silver lining for the bulls is that Bitcoin (BTC) has failed to test its June lows and has outperformed the Nasdaq and S&P 500 in the short term.
A positive trigger could start a strong rally in Bitcoin and select altcoins. Let’s study the charts of the top 10 cryptocurrencies to determine the key resistance levels to watch out for.
BTC/USDT
Bitcoin broke below the 20-day exponential moving average (EMA) ($19,584) on Oct. 7 and then successfully defended the level between Oct. 8-10. The sellers are trying to further strengthen their position by pulling the price below the uptrend line. .
If they manage to do that, the BTC/USDT pair could drop to the $18,125-$17,622 support zone. Buyers are likely to defend this area with all their might because if they don’t, the pair could start the next leg of the downtrend. The pair could plummet to $15,000.
Conversely, if the price bounces off the uptrend line, the bulls will try to push the pair above the moving averages and challenge the downtrend line. A breakout and close above this level will be the first indication that the bears may be losing control. The pair could then attempt a rally to $22,800.
ETH/USDT
Ether (ETH) is struggling to break above the 20-day EMA ($1,351). This suggests that the bears are selling on the rallies and will try to sink the price to the strong support at $1,220.
The 20-day EMA gradually sloping down and the RSI in the negative territory indicate an advantage for the bears. If the price drops below $1,220, the selling could intensify and the ETH/USDT pair could drop to the support line of the descending channel pattern.
Conversely, if the price turns up from the current level and breaks above the 20-day EMA, the pair could rally to $1,410. The bulls will have to push and hold the price above the channel to signal a possible change in trend.
BNB/USDT
BNB has been trading between $258 and $300 for the past few days. The break below the moving averages of Oct. 8 paves the way for a possible drop towards the strong support of $258.
If the price bounces off $258, it will suggest that the range bound action may continue for a while longer. The longer it spends in the range, the stronger the eventual breakout will be.
The next trending move will start with a break above $300 or a drop below $258. It is difficult to predict the direction of the breakout with certainty. Therefore, it is best to wait for the breakout to occur before placing directional bets.
If the price drops below $258, the BNB/USDT pair could drop to $216. On the other hand, a break above $300 could take the pair to $342.
XRP/USDT
The bulls tried to push XRP above the overhead resistance of $0.56, but the bears did not budge. The sellers will try to push the price towards the 20-day EMA ($0.47).
If the buyers want to maintain the advantage, they will have to buy the dips from the 20-day EMA. If the price bounces hard off this support, the probability of a break above $0.56 increases. The pair could then resume its uptrend and rally to $0.66.
This positive view could be invalidated if the price turns down and breaks below the 20-day EMA. The XRP/USDT pair could then drop to the breakout level of $0.41. A bounce off this support will indicate that the pair may remain stuck between $0.41 and $0.56 for some time.
ADA/USDT
Cardano (ADA) has been gradually sliding towards the vital support of $0.40. This level has been maintained on two previous occasions; hence, the bulls are again expected to mount a strong defense at this support.
Any bounce is likely to be met by selling at the 20-day EMA ($0.43) and again at the 50-day SMA ($0.45). The bulls will have to clear this resistance to signal the start of a possible sustained recovery. The pair could rally to the downtrend line.
Instead, if the price breaks below the $0.40 support, it will indicate a resumption of the downtrend. The ADA/USDT pair could then drop to the strong support at $0.33, where buying is likely to emerge.
SOL/USDT
Solana (SOL) has been hovering between $31.65 and $35.50 for the past few days. The flat moving averages and the RSI just below the midpoint suggest a balance between supply and demand.
The first sign of strength will be a break and close above the overhead resistance at $35.50. If this level is crossed, the SOL/USDT pair could attempt a rally to $39. The previous rally had stalled at this level; therefore, the bears will once again try to defend this level aggressively.
On the downside, the $31.65-$30 zone is likely to attract heavy buying by the bulls. If the bears want to stay in control, they will have to break the price below $30. That could extend the decline to the next support at $26.
DOGE/USDT
Dogecoin (DOGE) fell and closed below the 20-day EMA ($0.06) on Oct. 8 and the bulls failed to push the price above the 50-day SMA ($0.06) on Oct. 9.
The selling resumed on Oct. 10, and the bears will now try to sink the price to the support near $0.06. Buyers successfully defended this support on September 19 and again on September 21; therefore, the bulls are likely to buy the dip to this level with vigor.
If the price bounces off the current level or support, the bulls will try to push the DOGE/USDT pair to the overhead resistance at $0.07. The next big trend move could start with a break above $0.07 or below $0.05.
DOT/USDT
Polkadot (DOT) has been consolidating between $6 and $6.64 for the past few days. The bears are trying to further consolidate their advantage by not allowing the price to rise above the 20-day EMA ($6.46).
If the price continues down and drops below $6.25, the DOT/USDT pair could retest the crucial support at $6. If this level is broken, the pair could start the next leg of the downtrend. The pair could then slide to $5.36.
If the bulls want to negate this bearish view, they will have to quickly push the price above the resistance zone between $6.64 and the 50-day SMA ($6.85). If they are successful, the pair could accelerate and rally towards the next resistance at $8.
MATIC/USDT
Polygon (MATIC) turned down from the downtrend line, but the bears were unable to sink the price below the moving averages. This suggests that the bulls are buying the dips of the moving averages.
Buyers will need to push and hold the price above the downtrend line to signal a possible short-term trend change. The MATIC/USDT pair could then attempt a rally to $0.94, where it could be met with selling by the bears again.
Alternatively, if the price turns down from the current level and breaks below the moving averages, it could tilt the short-term advantage in favor of the bears. The pair could then drop to $0.75 where a buy is likely to emerge.
SHIB/USDT
Shiba Inu (SHIB) broke out and closed below the 20-day EMA ($0.000011) on Oct. 6. The buyers tried to push the price above the 20-day EMA on Oct 9-10, but the bears held their ground.
The SHIB/USDT pair has strong support in the $0.000011–$0.000010 zone. If the price bounces off this zone, the bulls will once again try to push the pair above the moving averages.
A breakout and close above the 50-day SMA ($0.000012) will suggest that the recovery may be gaining momentum. The pair could then rally to $0.000014.
The bears may find it difficult to sink the price below the psychological support at $0.000010, but if they manage to do so, the pair could drop to $0.000007.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.