Bitcoin and most altcoins are likely to be a pick on volatility after the CPI print on Oct. 13.
The US Federal Reserve aggressively raised rates in a bid to cool inflation and that kept US stock markets under pressure. Investors have been closely watching inflation figures for early signs of a rise, but to no avail.
Wholesale prices rose 0.4% in September, beating the Dow Jones estimate for a 0.2% increase. This suggests that inflation is still responding to the Fed’s monetary tightening. Now all eyes are on the Consumer Price Index data due out on October 13.
Cryptocurrency market daily performance. Source: Coin360
Stock traders can expect volatility after the numbers are released, but for crypto traders it is difficult to predict if this trigger will be enough for Bitcoin.
BTC
dial down
$16,630
to break out of the $18,500 to $24,500 range that it has been stuck in for the past few days.
What are the critical upside and downside levels that signal the start of a trending move in Bitcoin and Altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
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USDT/BTC
Bitcoin is trying to bounce off the first support at $18,843, but the relief rally is likely to hit a wall at the 20-day EMA ($19,482). If the price breaks down from this resistance, it will suggest that the bears are selling on rallies.
BTC/USDT daily chart. Source: TradingView
A breakout and close below $18,843 could take the price to the support zone of $18,125 to $17,622. The bulls are expected to defend this zone with all their might, because if they fail to do so, the BTC/USDT pair may resume its downtrend. The pair could then drop to $15,800 and then to $15,000.
The first sign of relief for the bulls will be a break above the downtrend line and the rally could pick up steam after the pair breaks above $20,500. That could set the stage for a potential rally to $22,800.
EUR/USDT
Ether
ETH
dial down
$1,190
it slipped below the symmetrical triangle on Oct 11, but a positive sign is that the bulls bought the dip and will try to push the price back into the triangle on Oct 12.
ETH/USDT daily chart. Source: TradingView
The 20-day EMA ($1,339) is sloping down and the RSI is in the negative territory, which indicates that the bears are in control. The sellers are trying to stall the rally at the 20 day EMA.
If the price breaks down from the current level or the 20-day EMA and drops below $1,267, it will suggest a resumption of the move down. The ETH/USDT pair could drop to the next support at $1,109.
The first sign of strength will be a pause and a close above the triangle. This could pave the way for a possible rally towards the resistance line of the channel.
USD/USDT
BNB formed a doji candlestick pattern on Oct. 11, which suggests indecision between the bulls and the bears. The buyers are trying to start a bounce from the $266 support.
BNB/USDT daily chart. Source: TradingView
The bounce is likely to face stiff resistance at the moving averages. If the price turns down from the current level or the moving average, the BNB/USDT pair can drop to the strong support at $258. The bulls are expected to strongly defend this level as a break to the bottom will sink the pair to $216.
Another possibility is that the price rises and exceeds the moving average. That could clear the way for a possible rally towards the stiff overhead resistance at $300.
USD/XRP
The failure of XRP (XRP) to break the overhead hurdle at $0.56 on Oct 9 may have attracted profit booking by short-term traders. That brought the price to the 20-day EMA ($0.47) on Oct. 11.
The chart of changes in XRP and the US dollar is constantly updated. Source: TradingView
If the bounce fails to break above $0.51, it will suggest that the bulls do not see the drop as a buying opportunity. That could increase the possibility of a break below the 20 day EMA. If this happens, the selling can intensify and the XRP/USDT pair can drop to the breakout level of $0.41. The Bulls will probably strongly defend this level.
Contrary to this assumption, if the price breaks out and breaks above $0.51, the bulls will once again try to push the pair above $0.56. If you can
