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Bitcoin Holds Below 200-day MA
BTC: Price: $8,260 | MCAP: $149.25 | 24-Hr Volume: $14.16 billion
Short-term trend: Bearish
Bitcoin on Tuesday created a doji candle at the 200-day MA resistance, signaling an end of the corrective bounce from recent lows near $7,700.
Further, the cryptocurrency has failed to capitalize on a double bottom breakout, confirmed in the Asian trading hours yesterday.
The failed breakout indicates the bearish sentiment is quite strong and suggests scope for a retest of recent lows below $8,000.
The outlook would turn bullish if prices close today above $8,531, invalidating Tuesday's Doji candle. That could yield a sustained rise to $9,000.
Long-term trend: Bearish
Bitcoin closed below $9,049 on Sept. 30, confirming a bearish inside bar candlestick reversal on the monthly chart.
The cryptocurrency had charted consecutive inside bar candlesticks in July and August, indicating indecision or consolidation.
The tug of war between the bulls and the bears ended with a 20 percent drop in September.
Put simply, the path of least resistance is to the downside and a drop to $7,000 or even lower could be see in the next few weeks. Popular analyst Josh Rager believes BTC could drop to $6,600-$6,300 where there is major interest.
The bearish setup would be invalidated if and when prices find acceptance above $9,049.
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Chainlink Hits 1.5-Month High
LINK: Price: 23,339 BTC | MCAP: 81,591 BTC | 24-Hr Volume: 12,345 BTC
Short-term trend: Bullish
LINK jumped to 23,756 BTC on Binance earlier today, the highest level since mid-August. The cryptocurrency has found acceptance above the 200-day moving average hurdle.
The higher highs, higher lows on the daily chart and the ascending . 5- and 10-day moving averages indicate the path of least resistance is to the higher side.
The 14-day RSI, however, is reporting overbought conditions with an above-70 print. So, a pullback to the 10-day moving average support could be seen before a sustained break above 24,708 (Aug. 18 high). The bullish view would be invalidated if prices find acceptance below the 10-day MA.
Long-term trend: Neutral
LINK's sharp recovery from 14,778 sats has neutralized the bearish setup. A weekly close (Sunday, UTC) above 24,708 sats is needed to invalidate the bearish lower highs setup and confirm a bullish breakout.
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| Stellar Stuck at Key Hurdle
XLM: Price: 707 sats | MCAP: 142,618 BTC | 24-Hr Volume: 20K BTC
Short-term trend: Neutral
XLM is currently reporting a 2 percent loss on a 24-hour basis. The cryptocurrency charted a bullish higher low on Sept. 24, but even so, the outlook remains neutral, as the 100-day MA, a widely-tracked technical line, is proving a tough nut to crack.
The cryptocurrency faced rejection at the key MA on Tuesday, having failed to pierce the resistance on Sept. 19.
Hence, a convincing break above the 100-day MA, currently at 743 sats, is needed to confirm a bullish breakout. That would expose the neckline of the inverse head-and-shoulders pattern, currently located at 890 sats. Long-term trend: Bullish above 890 sats
A high-volume break above 890 sats would confirm an inverse head-and-shoulders breakout or a transition from bearish lower highs, lower lows to bullish higher lows, higher highs and open the doors for levels above 1200 sats.
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Ether’s bitcoin-denominated exchange rate could soon witness big moves, according to the options market data.
ETH/BTC’s one-month at-the-money options volatility spread, a tool which shows what the market implies about the cryptocurrency’s volatility in the future, has jumped to 14.12%, as seen in the above tweet.
The volatility gauge has witnessed a near 90-degree rise from 3% over the last two weeks.
The spike in ATM volatility spread indicates the traders are expecting ETH/BTC to chart big moves in the run up to and after Devcon – an annual gathering held by the Ethereum Foundation for developers, researchers, thinkers, and makers. The event is reportedly scheduled from Oct. 8 to Oct. 11.
ETH/BTC is currently trading at 0.021403 on Binance, having bottomed out at 0.01650 on Sept. 6.
With volatility at multi-month highs, buying options (call and put) is a risky bet as a rise in volatility makes options costly. More importantly, volatility usually drops sharply following the conclusion of a binary event like Devcon, resulting in a sudden drop in options prices.
Seasoned traders, therefore, buy options when volatility is low and sell options when volatility is high. |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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