Legacy markets continue to negatively impact Bitcoin price, but a positive sign is that the bulls have not allowed BTC to retest its June low.
The United States equities markets have started the week on a weak note as investors remain unconvinced that the Federal Reserve will pull back its aggressive monetary policy. The Nasdaq Composite index fell to its lowest level since September 2020.
All eyes will be fixated on the U.S. Consumer Price Index data for September to be released on Oct. 13 as that could influence the Fed’s decision on the size of the rate hike in the next meeting in November.
Depending on how the market perceives the reading, legacy markets and the cryptocurrency markets may witness a pick-up in volatility. A minor positive for the bulls is that Bitcoin (BTC) has not tested its June lows and has outperformed the Nasdaq and the S&P 500 in the short term.
A positive trigger could start a strong recovery in Bitcoin and select altcoins. Let’s study the charts of the top 10 cryptocurrencies to determine the key resistance levels to watch out for.
Bitcoin broke below the 20-day exponential moving average (EMA) ($19,584) on Oct. 7 and then successfully defended the level between Oct. 8 to 10. The sellers are trying to strengthen their position further by pulling the price below the uptrend line.
If they manage to do that, the BTC/USDT pair could drop to the $18,125 to $17,622 support zone. Buyers are likely to defend this zone with all their might because if they fail to do that, the pair could start the next leg of the downtrend. The pair could then plummet to $15,000.
Contrarily, if the price rebounds off the uptrend line, the bulls will try to push the pair above the moving averages and challenge the downtrend line. A break and close above this level will be the first indication that the bears may be losing their grip. The pair could then attempt a rally to $22,800.
Ether (ETH) is struggling to rise above the 20-day EMA ($1,351). This suggests that the bears are selling on rallies and will try to sink the price to the strong support at $1,220.
The gradually downsloping 20-day EMA and the relative strength index (RSI) in the negative territory indicate an advantage to bears. If the price slips below $1,220, the selling could intensify and the ETH/USDT pair may drop to the support line of the descending channel pattern.
Conversely, if the price turns up from the c
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