Bitcoin price continues to trade in a tight range, leading to potential short-term breakouts for MATIC, HT, QNT, and OKB.
The S&P 500 and the Nasdaq Composite fell last week to new lows for the year and closed the week down 1.55% and 3.11%, respectively.
The scenario changed dramatically on October 17, after rising incomes, the season and a sharp political shift as UK Chancellor of the Exchequer Jeremy Hunt added details to the government’s plan to fix his predecessor’s tax package ( Kwasi Kwarteng), which had triggered a Drop Log on the trigger. the value of the pound sterling and a near liquidation of UK pension plans.
At time of writing, the Dow is up 1.78%, while the S&P 500 and Nasdaq are up 2.57% and 3.26%, respectively. Meanwhile, Bitcoin
it has managed to stay well above its year-to-date low and show short-term outperformance.
Some analysts expect Bitcoin to be closer to bottoming out. Twitter trader Alan said that the stochastic indicator on Bitcoin’s monthly chart has reached levels similar to those seen during the 2014 and 2018 bear markets, indicating a likely macroeconomic bottom.
Similarly, LookIntoBitcoin creator Philip Swift said in an interview with Cointelegraph that Bitcoin could be near major cycle lows. Citing various metrics, Swift said Bitcoin may still face two to three months of pain, but its outperformance should start in 2023.
As Bitcoin remains below its June low, selected altcoins are attracting buyers. Let’s look at the charts of five cryptocurrencies that look interesting in the short term.
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Bitcoin broke above the 50-day simple moving average (SMA) ($19,689) on Oct. 14, but higher levels attracted strong selling by bears. That brought the price back below the 20-day EMA ($19,387).
BTC/USDT daily chart. Source: TradingView
The buyers will try to defend the immediate support at $18,843, but the recovery could face resistance at the 20-day EMA and then the downtrend line. If the price breaks down from the overhead resistance, the possibility of a break below $18,843 increases. The pair could then dip into the $18,125-$17,622 support zone.
To avoid this disaster, the bulls must force the price above the downtrend line. If they manage to do that, the BTC/USDT pair could rally to $20,500. A break above this resistance could signal the start of a relief rally to $22,800.
BTC/USDT 4-hour chart. Source: TradingView
The pair has been stuck between $18,125 and $20,500 for some time. If the bulls push the price above the moving averages, the pair could rally to $20,000 and then to $20,500. The bears can mount strong resistance at this level, but if the bulls break above them, the recovery can accelerate.
Another possibility is for the price to turn down from the moving averages and drop below the support at $18,843. That could strengthen the selling and the pair could move to support at $18,125. The Bulls are expected to defend this level strongly.
it has been trying to break above the downtrend line for the past few days. Although the bears successfully defended the overhead resistance, they were unable to sustain the price on Oct. 13. This suggests that the bulls are buying the dips because they expect an up move.
MATIC/USDT daily chart. Source: TradingView
If the price breaks above the downtrend line, the short-term trend may tip in favor of the bulls. The MATIC/USDT pair could then attempt a rally to $0.94. This level can again act as a strong barrier, but if the bulls break through it, the pair could rally to $1.05.
Alternatively, if the price breaks down from the downtrend line again, the bulls may give up and the pair may drop to $0.69. The bears need to push the price below this level to initiate a deeper correction to $0.62 and then to $0.52.
MATIC/USDT 4-hour chart. Source: TradingView
The downtrend line is witnessing a fierce battle between the bulls and the bears. Although the bears emerged victorious, the bulls are not ready to give up. They aggressively bought the dip to $0.71 and again