Legacy markets continue to have a negative impact on the Bitcoin price, but a positive sign is that the bulls did not allow BTC to test its June low.
US stock markets 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, which will be released on October 13, as this could affect the Fed’s decision on the size of the interest rate increase at the next meeting in November.
Cryptocurrency market daily performance. Source: Coin360
Depending on how the market perceives the reading, legacy markets and cryptocurrency markets may see a spike in volatility. A small silver lining for the bulls is that Bitcoin
BTC
to mark
$17,935
it didn’t test its June lows and outperformed the Nasdaq and the 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.
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USDT/BTC
Bitcoin broke below the 20-day exponential moving average (EMA) ($19,584) on October 7th and then broke the level between the 8th-10th. October successfully defended. The sellers try to further strengthen their position by pulling the price below the uptrend line. .
BTC/USDT daily chart. Source: TradingView
If they manage to do so, the BTC/USDT pair may fall 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 drop to $15,000.
Conversely, when the price bounces off the uptrend line, the bulls 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 are losing control. The pair could then attempt a rally to $22,800.
EUR/USD
Ether
ETH
to mark
$1,326
it is struggling to break above the 20-day EMA ($1,351). This suggests that the bears are selling on the rallies and trying to sink the price to the strong support at $1220.
ETH/USDT daily chart. Source: TradingView
The 20-day EMA is gradually sloping down and the RSI in negative territory indicates an advantage for the bears. If the price falls below $1,220, selling may intensify and the ETH/USDT pair may fall to the support line of the descending channel pattern.
Conversely, if the price rises from the current level and breaks above the 20-day EMA, the pair may rally to $1,410. The bulls need to push the price above the channel and hold for a possible trend change.
USD/USDT
BNB traded between $258 and $300 in the last few days. The break below the October 8 moving averages paves the way for a possible pullback to the strong support at $258.
BNB/USDT daily chart. Source: TradingView
If the price retraces $258, it will suggest that the range-bound action may continue longer. The longer it spends in the area, the stronger the eventual outbreak will be.
The next trend move starts with a break above $300 or a decline below $258. It is difficult to predict the direction of the eruption with certainty. Therefore, it is best to wait for the breakout before placing directional bets.
If the price falls below $258, the BNB/USDT pair may fall to $216. On the other hand, a break above $300 could take the pair to $342.
USD/XRP
The bulls tried to push XRP above the overhead resistance of $0.56, but the bears failed to break. The sellers are trying to push the price to the 20-day EMA ($0.47).
The graph of changes in XRP and the US dollar is constantly updated. Source: TradingView
If the buyers want to keep the advantage, they need to buy the dips of the 20-day EMA. If the price bounces hard from this support, the probability of a break above $0.56 increases. The pair could then resume its uptrend and rise to $0.66.
This positive view could be invalidated if the price declines and breaks below the 20-day EMA. The XRP/USDT pair could then fall to the breakout level of $0.41. A decline in this support ind
