Cryptocurrency Market update – Oct-07-2023
Based on the current situation, it appears that $BTC/USDT is holding up relatively well compared to the recent decline in the stock market. There’s a decoupling here, no correlation between BTC and other risk market, as it has held on well.
I think we remain in this wait and see mode, as the long range since March holds both bulls and bears in place. Still some real downside risks, but also good reasons for optimism.
Even though we’re technically in the bull market, getting the $29k-30k level will put the price action in the bullish phase. The long-term perspectives would be the focus for the overall bullish narrative. Let’s hope that, there would be a favorable regulatory news.
It is important to exercise patience and maintain emotional control, as these qualities are necessary to weather the storm.
Looking at the BTC daily chart we see the price action is still respecting the support level down to $25k and actually trading up mid-range of $27k in the last seven months. The price action is slightly above the 10-day MA, giving investors a cautious optimism.
There’s still a possibility for both upward and downward movements. The bullish scenario suggests a potential rise towards the $30k mark if certain resistance levels are overcome and positive market sentiments restored. On the other hand, a bearish scenario might see a drop towards the $25k support if the selling pressure intensifies.
I would say, the most probable scenario that seems most likely is a gradual ascent towards the prestigious $30k mark. This promising outlook is contingent on breaking through the stated resistance levels and maintaining a steady upward pace.
Chart 1. Tthe price action is still respecting the support down to $25k level and actually trading up mid-range of $27k. Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
BTC weekly chart gives a good positive action even though the 10-week MA is still trending low. We’re now in the 2nd half of the weekly cycle and let’s hope of getting to $29k-$30k level before the week-18 of the weekly cycle even though I would not be super excited at that level given the market outlook. From the historical point of view, there may be a much sell-off at the level.
The 29k-30k level will set a scene for more consolidation that could go either way- a pullback or break through the zone and aim for the $32K mark.
Monitoring the price action closely in the coming weeks is crucial, as increased volatility can be expected in the medium term.
No enthusiasm yet until the price hits $31k-$32k level.
Chart 2. Price gives a good positive action even though the 10-week MA is still trending low.
Source: bitcoin.live , BTCUSD Chart by TradingView
ETH/USD
Still that traditional volatility, pretty similar to BTC, holding on well and trending again in the right direction. The structure is still intact, and staying above the critical level of the 100-day MA and ultimately $1535 support level allows Eth/USD to remain bullish.
Holding on well has reduced immediate downside risks. This follows a hold above a crucial floor at August low of $1535, not too far from the lower edge of a declining channel since early 2023.
ETH/USD needs to break above $1745-$1805 for the medium-term, bullish trajectory to play out. So far, ETH/USD has been holding above significant long-term support, not fallen below the average.
In overall, the sentiment is still slightly bullish.
Chart 3. ETH/USD still holds above a crucial floor at the August low of $1535, not too far from the lower edge of a declining channel since early 2023. Source: Source: bitcoin.live , Chart by TradingView
