Price analysis 10/22: BTC/ETH, BNB/ADA, XRP/XRP, SOL/DOT, DOGE/LUNA, UNI

BTC and ETH reversed their course as they searched for underlying support. This suggests that bears are trying to trap bulls who are too leveraged.
After hitting their respective new highs, Bitcoin (BTC), and Ether (ETH), both saw aggressive profit-booking. This indicates that traders who bought Bitcoin (BTC) on rumors of a Bitcoin exchange traded fund booked profits after the launch ProShares’ Bitcoin Strategy ETF. (BITO) was launched on Oct. 22 by Valkyrie, a digital asset manager. However, they were met with strong selling pressure at higher levels. The greed level on the Crypto Fear and Greed Index has dropped from 84 on October 21 to 75 on October 22. Source: Coin360JPMorgan Chase strategists stated in a note that BITO was unlikely to trigger a new phase in which significantly more capital enters Bitcoin. They also warned that the hype surrounding the product could wane after a week. The strategists noted that capital was shifting from gold ETFs to Bitcoin funds since September, which “supports a bullish outlook on Bitcoin into the year-end.” Could Bitcoin and Ether experience a deep correction? What are the critical support levels that should be monitored? Let’s look at the charts of the top 10 cryptocurrencies. Bitcoin/USDTBitcoin hit a new record high at $67,000 on October 20. However, the bulls couldn’t sustain the breakout as the bears pulled the price below the breakout level of $64,854 on October 21. This indicates that sellers are trying to trap aggressive bulls.BTC/USDT daily charts. Source: TradingViewThe bears attempted to recover today, but the candlestick’s long wick shows that traders are selling on minor rallies. The 20-day exponential moving mean ($57,778) is the strong support. If the price bounces off of this support, it will indicate that sentiment remains positive and that traders are buying dips. This will increase the chance of the pair breaking above the overhead resistance zone, which is between $64,854 to $67,000. The price could rise to $75,000. ETH/USDTEther closed above the overhead resistance at 4,027.88 on October 20. The price then moved up sharply on Oct. 21, pushing it to $4,375. This was just above the previous all time high of $4,372.72.ETH/USDT daily charts. Source: TradingView. However, the long wick and negative close on October 21 suggest that traders may have sold aggressively at the all-time high. The bears are trying to keep the price below $4,027.88. The upsloped 20-day EMA ($3,712) as well as the relative strength index(RSI) in positive zone indicate that bulls still hold the upper hand. If the price bounces off the current level, the bulls will make one more attempt to thrust the ETH/USDT pair to a new all-time high.A break and close below the neckline of the inverse head and shoulders (H&S) pattern could signal the possible start of a deeper correction to $3,200.BNB/USDTBinance Coin (BNB) turned down from $505.90, which shows that bears are defending the overhead resistance at $518.90. BNB/USDT daily chart. Source: TradingView If the price bounces off of the 20-day EMA the BNB/USDT pair may make one more attempt at clearing the overhead hurdle at $518.90. The pair could rally towards the target of $554 if they can do so. The rising 20-day EMA, and the RSI in positive zone both indicate that the bulls have the upper hand. If the price falls below the moving averages, this advantage could shift in the favor of the bears. A break below $392.20 could lead to further selling. ADA/USDT Cardano broke above the 20 day EMA ($2.18) Oct. 21, but the bulls couldn’t push the price above resistance line of the symmetrical triangular pattern. This shows that the bears are vigorously protecting this level.ADA/USDT daily charts. Source: TradingViewThe sellers are trying to lower the price below the triangle support line. If they succeed, it will indicate that the equilibrium between bulls and bears has been resolved to the downside. The ADA/USDT pair could then slide towards the strong support at $1.87. Panic selling could occur if the price breaks below the triangle. The first sign that bulls are back in action is a break and close above this triangle. The pair may then rally to $2.47 and pick up momentum above this resistance.XRP/USDTXRP returned from the downtrend line on Oct. 21, indicating that bears are defending this level aggressively. The downside is that the bulls are trying to keep the price above the moving ranges. XRP/USDT daily charts. Source: TradingView If the price recovers from the current level, bulls will attempt to push the XRP/USDT pairing above the downtrend line. The pair could rally to $1.41 if they succeed. If the price breaks above this resistance, it could rally to $1.66. The flat moving averages and the RSI at the midpoint suggest that the pair will likely remain range bound for a few more days. A break and close below $1 could open the way for a drop to $0.85. SOL/USDTSolana broke and closed above the overhead resistance zone of $171.47 and $177.79 Oct. 21. This completed a bullish ascending triangular pattern with a target of $226.94.SOL/USDT daily charts. Source: TradingViewWhile bears might pose a challenge at the $216 record, the strong momentum over the past three days suggests that bulls are buying at higher levels. A break above $216 will signal a resumption in the uptrend. Conversely, if SOL/USDT turns down from $216, it is possible to retest $177.79. If the price bounces off this level it will signify that bulls continue buying on dips. The bulls will attempt to re-establish the uptrend. A break and close below $171.47 will signal that the bullish momentum has possibly weakened.DOT/USDTPolkadot (DOT) broke above the immediate resistance at $44.78 on Oct. 20, indicating the possible resumption of the up-move. The bears tried trap aggressive bulls by pushing the price towards the breakout level at $39.02 Oct. 21, but buyers had other plans. Source: TradingView The bulls have the upper hand due to the upsloping 20 day EMA (38.88) as well as the RSI close to the overbought area. The DOT/USDT pair may retest its all-time high of $49.78 if buyers can sustain the price above $45. To turn the tide in their favor, the bears will need to pull the price below $38.77, the breakout level. The pair could then decline to the 50-day SMA ($34.07).Related: PayPal logs its largest Bitcoin volume since May BTC price crashDOGE/USDTDogecoin (DOGE) continues to face stiff resistance at the downtrend line, indicating that bears are defending this level aggressively. The minor positive is that bulls haven’t allowed the price to break below the 20-day EMA ($0.23). DOGE/USDT daily chart. Source: TradingView If bulls fail to push the price above the downtrendline, the chances of a break below 20-day EMA will increase. This could push the price to the strong support zone of $0.21 to $0.19. The bulls will defend this support zone vigorously. A strong rebound from this support zone could point to a possible range bound action between $0.19 to $0.27 for a few more days. If the DOGE/USDT pairs rises and closes at or above $0.27, the trend will favor the bulls. The pair could then rise to $0.32, and then to $0.35. The LUNA/USDTTerra protocol’s LUNA token rallied close at the overhead resistance of $45.01 on October 20. Bears tried to halt the up-move. Although the overhead resistance was broken, the price fell but bulls held firm to the $39.75 breakout level on Oct. 21. This indicates that traders are buying dips and the sentiment has turned positively. Source: TradingView If bulls push and maintain the price above $45.01, then the LUNA/USDT pairing could retest its all-time high of $49.54. This level could be an obstacle again, but if bulls stop the next decline above $45.01, there are more chances of a new all time high. The pair could rally to $60.57. Contrary to this assumption the price could fall to $34.86 if it falls below the overhead resistance ($39.18) or the current level. The selling could intensify below $32.50.UNI/USDTUniswap (UNI) broke and closed above the neckline of the inverse H&S pattern on Oct. 20 but the bulls could not build on this advantage. The price fell below the neckline by the bears on Oct. 21. UNI/USDT daily chart. Source: TradingView. However, a minor plus is that the bulls didn’t allow the price to slip below its 20-day EMA ($25.46). This indicates that buyers are buying on every minor dip. Bulls could drive the price to $28, and the UNI/USDT currency pair could reach $31.41. This level could act as a stiff resistance, but if bulls overcome it, the pair could rally to $36.98. A break below the moving averages could bring the price down to $22. If the support is broken, the short-term trend could be negative. Risk is inherent in every investment or trading move. HitBTC exchange provides market data.

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