BTC gains intraday strength as DXY weakens, but overall trend remains flat
Bitcoin price fell yesterday as part of a descending triangle breakdown and found support at \(18,900. Currently, it's trying to regain \)19,300, but sellers are expected to step in as it’s a crucial level for any upward momentum.
DXY also completed its double bottom structure and touched 113 before a correction, allowing equities and Bitcoin to find footing. The S&P 500 found support at 3,680 and is now trying to retest its previous rejection area of 3,775.
However, zooming out, we can see that markets have remained indecisive and Bitcoin has been ranging around the current price level for a while. Typically, the longer such sideways action extends, the sharper it eventually ends up moving.
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Bitcoin Technical Analysis
Yesterday’s breakdown was absorbed by aggressive buyers as seen from the wick. We can also see a double-bottom formation with a bullish divergence supporting this pattern. If DXY continues to weaken and goes down to 111.5 we could see a potential test of this neckline with a target as high as \(20,200. This target will be very close to our early October rally and decide whether Bitcoin can break free from this range and get to \)22,000 or higher.
Ethereum Technical Analysis
Despite the dump, Ethereum’s symmetrical triangle from earlier maintained its integrity as we saw buyers come in around \(1,265. Currently trading back above \)1,300 we can see a lot of longs stacking up on Ethereum’s future contracts which shows market sentiment is bullish; however, Ethereum for now is bound to Bitcoin as the market leader and will either look to test \(1,340 or break down from this symmetrical triangle if Bitcoin loses \)19,000 once again.
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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.