After hitting their new all-time highs, Ether (ETH), and Bitcoin (BTC), both saw aggressive profit-booking. This indicates that traders who bought Bitcoin (BTC) on rumors of a Bitcoin-exchange-traded funds booked profits after the launch of ProShares’ Bitcoin Strategy ex-traded fund (ETF).
After Valkyrie launched the second BTC futures-linked ETF on Oct. 22, the bulls attempted to create a rebound in Bitcoin but were met with strong selling pressure at higher prices. The greed level of the Crypto Fear and Greed Index has fallen from 84 on October 21 to 75 on October 22.
Everyday cryptocurrency market performance. Source: Coin360
JPMorgan Chase strategists stated in a note that BITO was unlikely to “incite a new phase in significantly more fresh capital entering Bitcoin”. They also warned that the hype surrounding the product could fade after a week. According to the strategists, capital is shifting from gold ETFs towards Bitcoin funds since September which “supports a bullish outlook on Bitcoin into the year-end.”
What are the key support levels? Could Bitcoin and Ether be in deep correction? Let’s look at the charts for the top 10 cryptocurrency coins to see what happens.
Bitcoin hit a new record high of $67,000 on October 20, but the bulls couldn’t sustain the breakout. On Oct. 21, bears pulled the price below its breakout level of $64,854. This indicates that sellers are trying to trap aggressive bulls.
Daily chart of BTC/USDT Source: TradingView
Although the bears attempted to recover on Oct. 22, the candlestick’s long wick shows that traders are buying on minor rallies. The 20-day exponential moving Average (EMA) ($57778) is a strong support for the downside.
This support will indicate that traders are buying dips and sentiment is still positive if the price bounces off it. This will increase the chance of the pair breaking above the overhead resistance zone at $64,854 to $67,000. This could lead to a rally of the pair to $75,000.
However, if the price falls below the 20-day EMA the selling could accelerate and the BTC/USDT exchange pair could fall to the 50-day simplemoving average (SMA) ($50.496).
On Oct. 20, Ether broke above the overhead resistance and closed at $4,027.88. The price then moved up sharply on Oct. 21 to $4,375. This was just below the $4,372.72 all-time high.
Daily chart of ETH/USDT Source: TradingView
The long wick and negative closing on Oct. 21 suggest that traders may have sold aggressively at the all-time peak. The bears want to keep the price at $4,027.88.
Bulls are still in control of the upsloping 20 day EMA ($3,712) as well as the relative strength index, (RSI), in the positive zone. The bulls will attempt to push the ETH/USDT price to an all-time record if the price falls below the current level.
A break near the neckline of the Inverse Head and Shoulders (H&S), pattern could indicate a possible beginning of a deeper correction up to $3,200.
Binance Coin (BNB), which was $505.90 lower, shows that bears are protecting the overhead resistance of $518.90. The altcoin failed to drop below the 20-day EMA (455) which is expected to provide strong support.
Daily chart BNB/USDT TradingView
The BNB/USDT pair may attempt to break the $518.90 overhead barrier if the price moves above the 20-day EMA. The pair could rally towards the target of $554 if they can do so.
Bulls are favored by the rising 20-day EMA, and the RSI within the positive zone. If the price falls below the moving averages, this advantage could shift to the favor of bears. A break below $392.20 could lead to further selling.
Cardano (ADA), broke above the 20 day EMA ($2.18) Oct. 21, but the bulls couldn’t push the price higher than the resistance line of a symmetrical triangle pattern. This shows that the bears are vigorously protecting this level.
Daily chart ADA/USDT Source: TradingView
The sellers are trying to lower the price below the support level of the triangle. If they succeed, it would indicate that the equilibrium between bulls and bears has been resolved to the downside.
The ADA/USDT currency pair could then slide towards the $1.87 support. Panic selling could occur if the pair breaks below this level. Bulls will return to the market if they break the triangle and close above it. The pair could then rally to $2.47, and gain momentum above resistance.
On Oct. 21, Ripple (XRP), moved back from the downtrendline, indicating that bears are aggressively defending this level. The downside is that bulls are trying to keep the price above the moving ranges.
Daily chart of XRP/USDT Source: TradingView
The bulls will attempt to push the XRP/USDT price pair higher than the downtrend line if the price recovers from its current level. The pair could rally to $1.41 if they succeed. The price could rise to $1.66 if it breaks and closes above this resistance.
The pair could remain range bound for a few more days due to the flat moving averages, and the RSI close to the midpoint. Breaking below $1 would open the way for a drop to $0.85, which could be possible with a close below.
Solana (SOL), broke above the overhead resistance zone of $171.47 to $177.79 on October 21. This completes a bullish ascending triangular pattern with a target of $226.94
Daily chart of SOL/USDT Source: TradingView
Although the bears might pose a challenge at the $216 all-time high, the strong momentum over the past three days suggests that bulls are buying aggressively at higher levels. The resumption will be signaled by a break or close above $216.
A retest of $177.79 could be possible if the SOL/USDT price pair falls below $216. Bulls will continue to buy dips if the price bounces off this level. The bulls will attempt to reestablish the uptrend.
Bullish momentum may have weakened if the close falls below $171.47.
Polkadot, (DOT), broke above the immediate resistance of $44.78 on October 20, which indicated the possibility for a resumption in the up-move. Although the bears attempted to trap aggressive bulls by pushing the price towards the breakout level of $39.02 on October 21, buyers had other plans.
Daily chart of DOT/USDT Source: TradingView
Bulls are likely to have the upper hand due to the upsloping 20 day EMA (38.88 USD) and the RSI close the overbought area. The DOT/USDT pair may retest its all-time high of $49.78 if buyers can sustain the price above $45.
Although this level can be a stumbling block, bulls should not lose much ground. The pair could continue their up-move to $53.90. To turn the tide in their favor, the bears will need to lower the price to $38.77. The price could fall to the 50-day SMA (34.07).
Related: PayPal records its highest Bitcoin volume since the May BTC price crash
Dogecoin (DOGE), which continues to face strong resistance at the downtrendline, indicates that bears are aggressively defending this level. The bulls have not allowed price to break below the 20-day EMA ($0.23), which is a minor plus.
Daily chart of DOGE/USDT Source: TradingView
The likelihood of a break below 20-day EMA is increased if bulls fail to push the price higher than the downtrend line. This could push the price towards the strong support zone of $0.21 to $0.19. This zone is expected to be vigorously defended by the bulls.
If the support zone is strong, it will indicate a range-bound action of $0.19 to $0.27 in the next few days. If the DOGE/USDT pairs rises and closes at or above $0.27, the trend will favor the bulls. This could lead to a rise in the pair to $0.32, and then to $0.35.
Terra protocol’s LUNA token rose close to $45.01 overhead resistance on Oct. 20, where 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 now buying dips and the sentiment is positive.
Daily chart of LUNA/USDT Source: TradingView
The LUNA/USDT pairing could retest its all-time high of $49.54. If bulls push and maintain the price above $45.01, then the LUNA/USDT exchange rate could retest that level. Although this level could be an obstacle, bulls can stop the next decline below $45.01 and increase the chances of a new all time high. The pair could rally to $60.57.
Contrary to the assumption, if the price falls below the overhead resistance or current level and breaks below the 20 day EMA ($39.18), it could lead to a decline of $34.86. Selling could accelerate below $32.50.
Uniswap, (UNI), broke above the neckline for the inverse H&S patterns on Oct. 20, but the bulls couldn’t capitalize on this advantage. On Oct. 21, the bears brought the price below the neckline.
Daily chart of UNI/USDT Source: TradingView
A minor positive is the fact that the bulls didn’t allow the price below the 20-day EMA ($25.46). This indicates that buyers are buying every minor dip. The UNI/USDT pairing could rise to $31.41 if bulls push the price higher than $28.
The resistance at this level could be a strong barrier again, but bulls can overcome it and rally to the pattern target of $36.98. A break below the moving averages could lead to the price falling to $22. If this support is broken, the short-term trend could turn negative.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.