Although cryptocurrencies have been closely correlated with the US equities markets for a large part of 2022, Bitcoin showed the first signs of decoupling in September. The largest cryptocurrency by market capitalization fell only about 3% in September, indicating that lower levels may have attracted accumulation from long-term investors. The bullish bias of the cryptocurrency traders may be due to Bitcoin’s historically strong performance in October.
According to coinglass data, Bitcoin has closed October in the red only on two occasions, in 2014 and 2018. Hence, cryptocurrency enthusiasts popularly call the month as “Uptober.” Robert Kiyosaki, businessman and best-selling author of Rich Dad Poor Dad, said in a tweet on October 2 that Bitcoin, gold and silver prices may go down if the Federal Reserve continues to increase interest rates as that would cause the US dollar to strengthen.
He called this a buying opportunity because when the “Fed pivots and drops interest rates as England just did you will smile while others cry.” We had projected in the previous analysis that Bitcoin is likely to face resistance at the 50- day simple moving average and that is what happened.
Bitcoin climbed above the 20-day exponential moving average (EMA) on September 27 and again on September 30 but the bulls could not sustain the higher levels as seen from the long wick on the candlesticks. The first major hurdle for the bulls to cross on the upside is $20,500. If they manage to do that, the bullish momentum could pick up and the BTC/USD pair could rally to the next stiff resistance of $22,800.
Alternatively, if the price turns down from the current level or the overhead resistance, the bears will again try to sink the pair below $18,600. If they succeed, the pair could drop to the June low of $17,567.45.
The bears will have to pull the price below this vital support to signal the start of the next leg of the downtrend. The flattish 20-day EMA and the relative strength index (RSI) near the midpoint do not give a clear advantage either to the bulls or the bears. It points to a possible range-bound action between $18,600 and $20,500 for the next few days.
Lastly please check out the advancement’s happening in the cryptocurrency world.
Enjoy the issue!
FEATURING IN THIS WEEKS EDITION
– Age of Zalmoxis
– Manilla Finance
– The Revolution Token
CRYPTO TRADE OPPORTUNITIES
BITCOIN – BTC/GBP
We said in our previous analysis that Bitcoin could retest the $18,600 to $17,567.45 support zone but the bulls will defend it aggressively and that is what happened. The BTC/USD pair dropped and closed below the immediate support of $18,600 on September 21 but the bears could not build upon this advantage. Buyers quickly pushed the price back above $18,600 on September 22. This shows strong buying at lower levels. Read more
ETHEREUM – ETH/GBP
Ether dropped below the $1,280 support on September 21 but the bears could not sustain the lower levels. The bulls purchased the dip aggressively and pushed the price back above $1,280 on September 22. The bulls thwarted one more attempt by the bears to sink the price below $1,280 on September 25. This started a strong recovery which has pushed the ETH/USD pair to the 20-day EMA. Read more
RIPPLE – XRP/GBP
We stated in our previous analysis that if the price remains stuck between the moving averages and $0.40, the possibility of a break above the range will increase and that is what happened on September 20.
We had also projected a rally to $0.51 which was met on September 23 but the next target of $0.65 could not be achieved as the XRP/USD pair turned down from $0.56. Read more
Cardano dropped to the immediate support of $0.42 on September 21 but the bulls defended the level successfully. That started a rebound on September 22 which turned down from the 50-day SMA on September 23.
The price action of the past few days has formed a descending triangle pattern, which will complete on a break and close below $0.42. If that happens, the ADA/USD pair could drop to $0.39 and if this level also cracks, the pair could plummet to $0.33. Read more
BINANCE – BNB/GBP
The bears tried to sink Binance Coin below the strong support at $256.70 on September 19 but the long tail on the day’s candlestick shows strong buying at lower levels. Although the bears continued to defend the 20-day EMA, they could not pull the price below $256.70.
The 20-day EMA has flattened out and the relative strength index (RSI) has jumped into positive territory indicating that bulls are attempting a comeback. Buyers have pushed the price above the 20-day EMA on September 27 and will challenge the 50-day SMA. Read more
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