Bitcoin and most altcoins are likely to witness a pick in volatility following the CPI print on October 13.
The United States Federal Reserve has been aggressively hiking rates in an attempt to cool down inflation and that has kept the U.S. equities markets under pressure. Investors have been watching the inflation figures closely for early signs of topping out but to no avail.
Wholesale prices rose 0.4% in September, exceeding the Dow Jones’ estimate for a 0.2% gain. This suggests that inflation is yet to respond to the Fed’s monetary tightening. All eyes will now be fixed on the Consumer Price Index data to be released on Oct. 13.
Equity traders can expect volatility to pick up following the release of the numbers but for the crypto traders, it is difficult to predict whether this trigger is sufficient for Bitcoin (BTC) to break out of the $18,500 to $24,500 range it has been stuck in for the past several days.
What are the critical levels on the upside and downside that could signal the start of a trending move in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin is attempting to bounce off the first support at $18,843 but the relief rally is likely to hit a wall at the 20-day exponential moving average (EMA) ($19,482). If the price turns down from this resistance, it will suggest that bears are selling on rallies.
A break and close below $18,843 could pull the price to the $18,125 to $17,622 support zone. Bulls are expected to defend this zone with all their might because if they fail to do that, the BTC/USDT pair could resume its downtrend. The pair could then drop to $15,800 and later to $15,000.
The first sign of relief for the bulls will be a break above the downtrend line and the recovery could pick up steam after the pair rises above $20,500. That could set the stage for a possible rally to $22,800.
Ether (ETH) slipped below the symmetrical triangle on Oct. 11 but a positive sign is that the bulls purchased the dip and are trying to push the price back into the triangle on Oct. 12.
The 20-day EMA ($1,339) is sloping down and the relative strength index (RSI) is in the negative territory, indicating that bears are in control. The sellers will try to stall the recovery at the 20-day EMA.
If the price turns down from the current level or the 20-day EMA and breaks below $1,267, it will suggest the resumption of the down move. The ETH/USDT pair could then
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