Bitcoin breaks above $20,000 to give market wide relief
October has historically been a great month for crypto, and so far Bitcoin has seen upward moves in the first week. The S&P 500 also took a strong start after a multi-week downtrend and bulls appear to have finally stepped up to absorb the sell pressure.
While macro-economic factors still haven’t improved, the UN has reportedly urged the FED to slow down interest rate hike. We’ll have to see how that plays out but for now the biggest volatility inducing event will be the CPI release on October 13.
ETH also went in the same direction as BTC, recording a 3.5% increase in the past 24 hours. According to Bloomberg, money flowing out of crypto exchange-traded funds has slowed down by 97% in Q3 compared to Q2, indicating that risky assets may see more upside in the coming months.
Top altcoin gainers and losers
BTC Technical Analysis
Today’s Bitcoin price action is as expected and was highlighted in our previous daily updates. The market leader is on the path to fill in the FVG from \(21,000 to \)21,800. There is, however, a major resistance at $20,500 where bears are expected to put up a fight. If this level is flipped it could be the fuel needed by BTC to push higher.
We can also observe a Bollinger band squeeze forming on the daily time frame. This is extremely bullish because of its high time frame and could give us a rally toward $25,000 if it plays out.
On the flip side we can see corrections in this move up towards $19,800 and so forth to shake out late longs.
ETH Technical Analysis
Ethereum has been lagging in this rally. We are still trading in the \(1,300 range with next major resistance at \)1,370. If Bitcoin stays on the current path, it is likely to be a matter time before we see a swift move from Ethereum towards \(1,400 and eventually \)1,500. Currently, bulls need to maintain the pivot point of $1,330 at all costs if Ethereum is to move higher.
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Here’s a rundown of the major crypto market news from today.
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.