The S&P 500 and Nasdaq Composite fell to year-to-date lows last week, ending the week with losses of 1.55% and 3.11% respectively.
The scenario changes dramatically on October 17, with revenues, a season up, and a sharp policy shift by UK Chancellor Jeremy Hunt, leading to government plans to revise the fiscal package of his predecessor (Kwasi Kwarteng’s). Added details to. The value of the GBP and the near-liquidation of the UK pension system.
At the time of writing, the Dow is up 1.78%, while the S&P 500 and Nasdaq are up 2.57% and 3.26% respectively. Bitcoin (BTC), meanwhile, is well above its year-to-date lows, signaling short-term outperformance.
Some analysts predict that Bitcoin may be nearing a bottom. Twitter trader Allan said bitcoin’s monthly chart stochastic indicator reached levels similar to those seen during the 2014 and 2018 bear markets, signaling a possible macro trough. Said there was
Similarly, LookIntoBitcoin creator Philip Swift said in an interview with Cointelegraph that Bitcoin could be nearing a major cycle low. Citing various indicators, Swift said Bitcoin could face another two to three months of pain, but should start outperforming in 2023.
Some Altcoins Are Attracting Buyers As Bitcoin Holds June Lows. Let’s take a look at five cryptocurrency charts that are interesting in the short term.
Bitcoin surpassed the 50-day Simple Moving Average (SMA) ($19,689) on Oct. 14, but the higher level attracted heavy selling by the bears. This has pushed the price below his 20-day Exponential Moving Average (EMA) ($19,387).
Buyers are trying to defend the recent support at $18,843, but the recovery may face resistance at the 20-day EMA and the downtrend line. A break below $18,843 is more likely if the price breaks down from the overhead resistance. The pair can then plunge from his $18,125 to his $17,622 support zone.
To avoid this catastrophe, the bulls need to push the price above the downtrend line. If it does, the BTC/USDT pair could rise to $20,500. A breakout of this resistance could start a relief rally to $22,800.
The pair has been stuck between $18,125 and $20,500 for some time. If the bulls push the price above the moving averages, the pair could move to $20,000 and then to $20,500. The bears may offer strong resistance at this level, but if the bulls overwhelm the bears, the recovery could accelerate.
Another possibility is that the price can turn down from the moving averages and break below the support at $18,843. Selling could intensify and the pair could plunge to his $18,125 support. The bulls are expected to defend this level vigorously.
Polygon (MATIC) has been trying to break out of the downtrend line for the past few days. Although the bears successfully defended the overhead resistance, they were unable to lower the price on Oct. 13.
The short-term trend could tip to the bulls if the price breaks out of the downtrend line. After that, the MATIC/USDT pair can rise to $0.94. This level could again act as a strong barrier, but if the bulls climb above it, the pair could see him rise to $1.05.
Alternatively, if the price dips again from the downtrend line, the bulls could give up and the pair could drop to $0.69. The bear needs to break the price below this level to $0.62 and he will start a significant correction to $0.52.
The downtrend line is witnessing a tough battle between bulls and bears. The bears have come out on top, but the bulls don’t give up. They are buying aggressively to $0.71 and are trying to break out of the downtrend line again.
The 20-EMA has flattened out and the RSI is near the midpoint, indicating that demand and supply are in balance. The pair could challenge the downtrend line if the bulls push the price above the 50-SMA.
On the other hand, if the price falls below $0.77, buyers may exit their positions. After that, the pair may drop to $0.71.
Huobi Token (HT) started a strong rally from $4.07 on Oct 10th and reached $8.20 on Oct 14th, up 101% within 5 days. This shows that the bulls are in control.
The sharp rise over the past few days has pushed the RSI into highly overbought territory and may have tempted short-term traders to secure profits. This started a possible correction that could reach the 38.2% Fibonacci retracement level of $6.61.
If the price bounces off this support, the bulls will try to push the HT/USDT pair above $8.20 to resume the rally. If successful, the currency pair could rise to $10.
If this assumption breaks below $6.64, the pair could fall to the 50% retracement level of $6.12 and then to the 61.8% retracement level of $5.63. A deeper drop could delay the start of the next leg of the rise.
The 4-hour chart shows that the price has bounced back from the 20-EMA, but the bulls have failed to sustain the higher levels. This shows that the trader can secure profit on his rally minor.
The 20-EMA has flattened out and the RSI is just above the midpoint, indicating that bullish momentum may be waning. If the price sustains below the 20-EMA, the next stop could be the 50-SMA.
The bulls have to push the price above $7.65 to regain the upper hand. The pair could then retest the overhead resistance at her $8.20. A breakout of this level could start the next uptrend.
Related: India Aims to Develop Crypto SOP During G20 Presidency, Finance Minister Says
Quants (QNT) continue to move higher above the overhead resistance of $162, indicating sustained demand from the bulls.
The rising 20-day EMA ($149) points in favor of buyers, while the RSI in overbought territory points to a possible minor correction or correction in the short term. . Buyers are expected to defend a fall to the $162 breakout level.
If the price bounces off this level, the QNT/USDT pair could move up to $200 before attempting a rally to our target objective of $230.
This positive view may be invalidated in the short term if the price falls below the 20-day EMA. After that, the pair could fall to the 50-day SMA ($120).
The pair is facing resistance near $188, but the rising moving averages and the RSI in the overbought zone point to an upside path with minimal resistance. The pair can move to $204 if buyers push the price above $188.
Conversely, if the price falls below the 20-EMA, the trader may be making a profit. That could push the price down to the critical support of $162. A break below this support to close may indicate that the pair may have topped out in the near future.
OKB (OKB) has been trading above the moving averages for the past few days and the RSI has jumped into positive territory, indicating that it is in favor of buyers.
The OKB/USDT pair is facing stiff resistance at the overhead resistance of $17.50, but the small positive is that the bulls are not giving way to the bears. This suggests that the bulls are expecting the pair to break above the overhead resistance. In that case, the pair can move up to $20 and then to $23.22.
The first support on the downside is at $16.39. If the price falls below this level, the pair can drop to the moving averages and then to $15.
The price has fallen from the overhead resistance at $17.50, but the bulls are trying to defend the 20-EMA. If the price rises above $17, it will likely retest $17.50. Buyers have to clear this hurdle to signal the resumption of the uptrend.
If the price falls below the 20-EMA, the positive momentum may wane. The pair can then drop to his 50-SMA. If this level also cracks, the next stop could be $15.50.
Conversely, if the price rebounds from the 50-SMA and rises above the 20-EMA, it suggests accumulation at lower levels. After that, the bulls may try a rally to $17.50 again.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.