-
Market sentiment collapsed, returning to March lows.
-
The market has launched multiple bullish signals in a strong reaction against extreme fear.
-
Ripple may have the answer to know which side is right in the next few hours.
In any transaction between two individuals, there is one thing in common, and that is the perception by both parties that the settlement price benefits them in some way.
The two parties must meet at least one need – to generate profit, achieve liquidity, invest or assuage the fear of loss.
Source: alternative.me
One of the most powerful feelings and one that plays a significant role in these position-taking processes is the fear of losing money. At this time, fear has the mastery of the crypto segment and brings it back to the levels of March.
The price of an asset is the most effective ammunition to trigger an emotion, and it seems that the movement of the BTC/USD pair below $6700 has made many people uncomfortable.
I want to highlight that the market is at a fragile equilibrium point, and a few hundred dollars may decide the scenario that BTC/USD – and the entire crypto segment – will transit in the future. Today, this detail is important because the price is not homogeneous. It depends a lot on the exchange or platform, with vast differences. Right now, with more or less difficulty, you can buy a Bitcoin between the $6400 of the exchange that offers the lowest price and the $6888 of the highest price.
In the face of the collapse in the confidence level, Ether takes its necessary leadership role in the shadow. It moves powerfully upwards to the 9.43 (+3.95) level, enough for the rest of the market to react quickly.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.02421 and is breaking out of the bullish technical pennant figure and heading towards the upward trend line that has been driving the ETH/BTC upward movement since late 2019.
Above the current price, the first resistance level is at 0.0243, then the second at 0.0248 and the third one at 0.0254.
Below the current price, the first level is at 0.0228, then the second at 0.0225 and the third one at 0.0221.
The MACD on the daily chart increases its openness between the lines and also the slope. If it continues its development in the next two days, we could see the bulls mount a good bullish stampede and drag the market with them.
The DMI on the daily chart confirms the bulls' momentary victory and dramatically increases the chances of a consolidation move.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the price level of $7070 and clearly shows that market price and sentiment are taking opposite paths. In the introduction of this article, I have highlighted the prevailing pessimism, with a level 13 or "extreme fear", the price turns around and puts a lot of upward pressure on the resistance levels.
Above the current price, the first resistance level is at $7100, then the second at $7425 and the third one at $7618.
Below the current price, the first support level is at $6750, then the second at $6575 and the third one at $6400.
The MACD on the daily chart does not show improvement from yesterday's level. If the BTC/USD pair breaks the first resistance level, we may see a significant change in this indicator.
The DMI on the daily chart shows the bears above the bulls, but without a significant lead.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at $169.85 and is above the 50-day exponential average.
Above the current price, the first resistance level is at $170, then the second at $184 and the third one at $190.
Below the current price, the first support level is at $164, then the second at $155 and the third one at $148.
The MACD on the daily chart shows an improvement in the slope and opening between the lines. If the ETH/USD crosses above the $170 resistance level, the improvement in this indicator could be very significant.
The DMI on the daily chart shows the bulls have crossed the ADX line and are gaining momentum. If buyers hold the bullish momentum for two days, the bullish signal could be critical.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.1897 after confirming the breakout of the long-term bearish channel. The day's low is right at the top of the long-term bearish channel.
Above the current price, the first resistance level is at $0.190, then the second at $0.20 and the third one at $0.22.
Below the current price, the first support level is at $0.173, then the second at $0.17 and the third one at $0.163.
The MACD on the daily chart shows a slight improvement in the bullish profile, but still not enough to declare that the bullish momentum has returned.
The DMI on the daily chart shows the bears are in control and have a good lead over the bulls. The current structure can only have two developments that fit the expected scenarios for the Bitcoin and the Ether. Either the Ripple explodes with force and reverses the current setup, or it's all a lie, and the crypto market could point down in no time.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Bitcoin Weekly Forecast: Will the “Uptober” rally reach a fresh all-time high?
Bitcoin continues to climb this week after breaking its resistance barrier, aiming for a new all-time high. US spot Bitcoin ETFs posted $1.86 billion in inflows until Thursday, the largest streak of inflows since mid-July.
Crypto Today: Main tokens gain as Bitcoin is less than 10% away from all-time high
Bitcoin climbs above $68,000 and pulls back as market participants turn greedy, according to the indicator that checks trader sentiment. Ethereum holds gains above $2,600 and XRP hovers around $0.55 on Friday.
Solana Price Forecast: SOL gains 2% as community discusses Firedancer validator for better performance
Solana gains 2% as its community discusses performance improvements through its new validator, Firedancer. Bitcoin’s Layer 2 project Solv Protocol launched BTC staking token on the Solana blockchain.
Bitcoin: Will the “Uptober” rally reach a fresh all-time high?
Bitcoin (BTC) rallied nearly 8% so far this week until Friday after breaking its resistance barrier, aiming for a fresh all-time high (ATH). This rise in Bitcoin’s price is supported by an increase in institutional demand, which showcased a $1.86 billion inflows this week, the largest streak of inflows since mid-July. Rising apparent demand and institutional reports suggest that the current BTC cycle resembles the third halving, when prices increased sharply.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.