Altcoins are falling in value ahead of the debut of the Bitcoin ETF this week, possibly indicating that traders are nervous about this historic listing.
On October 19, the ProShares Bitcoin Strategy exchange-traded fund (ETF) will begin trading on the New York Stock Exchange under the ticker BITO.
Market players are expected to keep a close eye on the ETF’s volumes to see how much engagement there is from institutional investors. Short-term traders may be tempted to book profits if the response is modest for a few days, but if demand stays high, the bullish momentum may ramp up even further.
Institutional inflows into crypto goods have increased the total assets held by institutional managers to a new record high of $72.3 billion, according to the latest CoinShares report for the week ending Oct. 17. Bitcoin items drew the lion’s share of the $80 million inflow throughout the week, accounting for $70 million.
Will short-term traders book gains or will the launch of a new ETF boost mood and push Bitcoin to a new all-time high? Is it time for money to move away from Bitcoin and towards alternative cryptocurrencies? Let’s look at the top ten cryptocurrency charts to see what we can learn.
On the 17th of October, the long tail of Bitcoin‘s candlestick reveals heavy purchasing on dips. On Oct. 18, bulls sought but failed to push the price over the Oct. 15 high of $62,933. This indicates that bears are defending the $62,933 to $64,854 zone with strength.
The BTC/USDT pair might drop to the 20-week exponential moving average (EMA) ($55,118) if sellers plunge the price below $58,963. A strong comeback from this level will signal that traders are buying on dips and sentiment is still optimistic.
The bulls will then attempt to clear the overhead obstacle one more time. If they are successful, the pair might begin the following phase of the upswing, which could take them to $70,000 and then $75,000.
The pair might drop to the breakthrough level of $52,920 if the 20-day EMA support is violated. This is a crucial level to watch because if it breaks, the pair might fall to the 50-day simple moving average (SMA) ($49,270).
On Oct. 17, the bulls effectively defended the inverted head and shoulders (H&S) pattern neckline, but they were unable to maintain the rebound. This shows that at larger levels, demand dries up. On Oct. 18, the bears dragged Ether (ETH) back to the setup’s neckline.
If the price breaks below the neckline, it might fall to the 20-day EMA ($3,563). The fact that the moving averages are rising and the relative strength index (RSI) is in positive territory suggests that buyers are in control.
If the price bounces back strongly from the 20-day EMA, it indicates that traders are still buying on dips. The buyers will next try once more to pass the $4,027.88 overhead hurdle.
The ETH/USDT pair might retest the all-time high of $4,372.72 if they succeed. Alternatively, the pair might fall below $3,200 if bears plunge the price below the moving averages.
The 20-day exponential moving average ($439) is increasing, and the RSI is above 64, indicating that the path of least resistance is up. The BNB/USDT pair might surge to $518.90 if bulls push the price above $484.70.
This level may operate as a stumbling block for bulls, but if they clear it, the pair might rise to the pattern target of $554.
In contrast to this premise, if the price falls below the moving averages, it indicates that bears have re-entered the game. The price of the pair may then fall to $392.20.
Cardano (ADA) is currently trading inside a symmetrical triangle pattern, indicating that bulls and bears are undecided about the next directional move.
The 20-day EMA ($2.20) is progressively sloping down, while the RSI has dipped to approximately 43, indicating a modest bearish advantage. The ADA/USDT pair might tumble to $1.87 if sellers sink the piece below the triangle’s support line.
The bulls may be enticed to buy at this level. Bulls have absorbed the supply and made a powerful rebound if they breakout and close above the triangle’s resistance line.
The pair could then rally to $2.47, which could act as resistance, but if the bulls surpass it, the uptrend could continue to $2.80.
On Oct. 16, Ripple’s (XRP) attempt to break through the $1.24 overhead resistance failed at $1.18. This could have prompted short-term traders to book profits, resulting in a plunge below the moving averages on Oct. 17.
The day’s candlestick has a long tail, indicating that bulls are vigorously defending the psychological level of $1. The RSI is at the midway and both moving averages have flattened down, indicating range-bound behavior in the short term.
For a few days, the XRP/USDT pair may settle between $1 and $1.24. A break and close over $1.24 might pave the way for a move to $1.41, while a drop below $1 could push the pair to $0.85.
For the past three days, Solana (SOL) has remained above the downtrend line, but the bulls are trying to initiate an uptrend. This shows that bears haven’t given up yet and are still selling rallies.
The SOL/USDT pair might drop to $137.61 if bears force the price below the 50-day SMA ($151). A break and closing below this support might pave the way for a further drop to the crucial $116 level.
If the price rises from its current low and remains above $167.65, it indicates that buyers are returning to the market. The pair could then climb to $177.80, which is the 61.80% Fibonacci retracement level.
On Oct. 13, Polkadot (DOT) broke above the $38.77 overhead barrier, but the bulls were unable to take advantage of this strength. This shows that bears aren’t willing to give up and are selling on every rally.
A decline and close below the breakout level of $38.77 and the 20-day EMA ($36.64) will be the first indicator of weakness. The DOT/USDT pair might next fall to the 50-day simple moving average ($33.05).
The bullish RSI and uptrending 20-day EMA signal that the path of least resistance is to the upward.
If the price rises from its present level of $38.77 and breaks above $44.78, it will indicate that bulls have regained control of the market. After that, the pair could retest the all-time high of $49.78.
On Oct. 17, the bears dragged the price below the 20-day EMA ($0.23), although the day’s candlestick’s lengthy tail signals accumulation at lower levels. Dogecoin (DOGE) was pushed above the downtrend line on Oct. 18 by strong purchasing.
The lengthy wick on the Oct. 18 candlestick indicates that bears are vigorously defending the downtrend line. The DOGE/USDT pair might drop to $0.21 if bulls fail to keep the price above the downtrend line.
For the next few days, a bounce off this strong support might keep the pair locked between $0.21 and the downtrend line.
If buyers can keep the price above the downtrend line, it means the correction is over. The pair could then rally to $0.32 before moving higher to $0.35.
In recent days, the Terra protocol’s LUNA token has failed to break above the 20-day EMA ($38.13), indicating that sentiment has shifted negative and bears are selling on rallies.
The bears will now attempt to keep the stock below the 50-day simple moving average ($36.38). The moving averages are about to cross in a negative direction, indicating that the trend is in the bears’ favor.
The LUNA/USDT pair could drop to $32.34 if the price breaks below $34.86. This is a crucial support to watch because if it gives way, the selling might become even more intense. The price of the pair may then fall to $25.
To imply that the correction may be done, the bulls will have to push the price above the 20-day EMA and keep it there.
On Oct. 16, Uniswap (UNI) broke and closed above the neckline, but the move was a bull trap, as bears soon dragged the price back below the neckline on Oct. 17.
The UNI/USDT pair could tumble to $22.15 if bears push the price below the moving averages. If this support is broken, the selling might pick up speed, and the pair could tumble under $18.
The moving averages are flat, and the RSI is just above the midway, indicating that supply and demand are in balance.
If the bulls can push the price above the neckline and keep it there for a few days, the balance will shift in their favor. The pair could then advance to $31.41, with the rally possibly reaching the pattern target of $36.98 if this resistance is scaled.
Disclaimer: Every investing and trading decision entails some level of risk. When making a decision, you should do your own research. Market data is provided by HitBTC exchange.