10-year US Treasury bond yields rose Above 4.8% on October 3, the highest level since 2007. Jeffrey Gundlach, CEO of DoubleLine Capital, said in a press conference: mail On This “should put everyone on recession alert,” he warned.
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, warned in a recent Thread It causes the collapse of companies. Some investors believe this could lead to a rally in the cryptocurrency market.
It also appears that institutional investors are starting to warm up to cryptocurrencies. The latest weekly Digital Asset Fund Flows report from CoinShares shows $21 million in flows into digital asset investment products for the first time in six weeks.
In this uncertain macro environment, let’s take a look at the charts to determine a potential next step.
Bitcoin price analysis
Bitcoin (BTC) rose above $28,143 on October 2, but the long wick on the candlestick shows bears are selling aggressively at higher levels. The bears tried to capitalize on their advantage on October 3, but the bulls maintained their position at $27,160.
The 20-day EMA ($26,903) and the Relative Strength Index (RSI) in positive territory indicate that the bulls have the upper hand. Buyers will once again try to clear the overall resistance at $28,143.
A close above this level will complete the short-term double bottom pattern, aiming to reach $31,486.
This positive outlook will be invalidated if the price falls again from the overhead resistance and falls below the 20-day EMA. This could raise the price to $26,000. The BTC/USDT pair could then continue to consolidate between $24,800 and $28,143 for a longer period.
Ethereum price analysis
Ethereum (ETH) fell sharply from the overhead resistance of $1,746 on October 2, suggesting that the bears are keenly guarding this level.
The 20-day EMA ($1,640) is holding steady and the RSI is approaching the midpoint, indicating a balance between supply and demand. If the price rises from the current level, the bulls will once again try to overcome the hurdle at $1,746. If they can achieve this, ETH/USDT will complete the double bottom pattern, with a target target of $1,961.
On the other hand, if the price continues to decline and falls below the moving averages, it will indicate that the pair may extend its stay within the $1,531 to $1,746 range for some time.
BNB price analysis
BNB (BNB) jumped above the $220 resistance on October 2, but the bulls were unable to sustain the breakout as seen from the long wick in today’s candlestick.
Failure of the bulls to sustain the price above the 20-day EMA ($214) is a negative sign. It shows that traders are rushing towards the exit. BNB/USDT could then fall to the uptrend line.
If the price bounces off this level, the bulls will once again try to push the pair above $220. A close above this resistance could signal the start of an upward move to $235 and later to $250. Alternatively, if the price breaks below the uptrend line, the pair could fall to the massive support level at $203.
XRP price analysis
Buyers pushed XRP (XRP) above the symmetrical triangle pattern on September 29 and then thwarted several attempts by bears to pull the price back into the triangle.
The bulls will then try to overcome the general resistance at $0.56. If they succeed, it will signal the beginning of a new uptrend. The XRP/USDT pair can then start its journey towards the pattern at $0.66.
Conversely, if the price falls from $0.56 and falls below the uptrend line, it will indicate that the bulls are taking profits. This could keep the pair within a range between $0.56 and $0.41 for a few more days.
Solana price analysis
Solana (SOL) stock has been fluctuating within a wide range between $14 and $27.12. The price action over the past few days has led to the formation of a potential inverse head and shoulders pattern.
Although settings formed within a range tend to be less reliable, they should not be neglected. If the price rises and breaks above the neckline, the SOL/USDT pair may try to rise to $27.12 and eventually to the target pattern at $32.81.
An important support to watch on the downside is the 20-day EMA ($20.95). If the price falls below this level, it will indicate that the bulls have given up. This could open the door to a possible drop to $17.33.
Cardano price analysis
Cardano (ADA) price fell from $0.27 on October 2 and reached the 20-day EMA ($0.25) on October 4. This is an important level to monitor in the near term.
If the price bounces from the 20-day EMA, it will indicate a change in sentiment from selling on highs to buying on lows. The bulls will then try to push the price above $0.27 and start moving up to $0.29 and later to $0.32.
If the bears want to prevent the rally, they will have to pull the price below the 20-day EMA. The ADA/USDT pair may fall back to the vital support level at $0.24. The bulls are likely to protect this level aggressively.
Dogecoin price analysis
The bulls pushed Dogecoin (DOGE) above the 50-day SMA ($0.06) on October 2 but were unable to sustain higher levels. This indicates that bears are selling on every slight rise.
The DOGE/USDT pair reached the massive support level at $0.06. Repeated retesting of the support level over a short period of time leads to its weakening. If it breaks the $0.06 level, the pair may fall to the next major support level at $0.055.
A slight advantage in favor of buyers is that the RSI has formed a bullish divergence. This indicates that the bears may be losing their grip. Indicators do not provide clarity on the next step. Therefore, it is better to wait for the price to close above the 50-day SMA or fall below $0.06 to place trend bets.
Related: Bitcoin traders hope to maintain the $27,000 price as Bitcoin price ignores the volatile US dollar
Toncoin price analysis
TON Coin (TON) fell below its 20-day EMA ($2.09) on September 30 and the bears thwarted attempts by the bulls to reclaim the level on October 1.
The bears are trying to consolidate their positions by lowering the price to the 50-day simple moving average ($1.86). This level could trigger a bounce that would likely face selling at the 20-day EMA.
If the price falls from this resistance, it will indicate that sentiment has turned bearish and traders are selling on the rallies. This will increase the probability of a drop below the 50-day simple moving average.
Conversely, if the price rises and rises above the 20-day EMA, it will indicate that the markets have rejected the lower levels. The TON/USDT pair could then rise to $2.32 as the bears will once again try to stop the upward movement.
Polkadot price analysis
Polkadot (DOT) fell sharply from the 50-day SMA ($4.24) on October 2 and broke below the 20-day EMA ($4.10) on October 3.
The bears challenged the important support level at $3.91 on October 4, but the long tail on the candlestick shows strong buying at lower levels. The RSI has formed a bullish divergence, indicating that sellers may be losing their grip.
If the bulls push the price above the 20-day EMA, it will indicate that the DOT/USDT pair may extend its stay within the $4.33 to $3.91 range for some time. The bears will have to cut the price below $3.91 to start the next leg of the downtrend to $3.50.
Polygon price analysis
After witnessing a tough battle between bulls and bears near the moving averages, Polygon (MATIC) rebounded on October 4, suggesting that buyers are trying to take charge.
The bulls are trying to build on the strength and push the price above the upper resistance level at $0.60. If they can do so, it will signal the beginning of a sustainable recovery. MATIC/USDT could then rise to $0.70.
Contrary to this assumption, if the price declines and breaks below the 20-day EMA, it will indicate that the bears are active at higher levels. The pair may then retest the crucial support at $0.49. This level is likely to attract aggressive buying by bulls.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.