Digital Asset Insights Digital Asset Insights #88

Know the history and be familiar with the recent trends of price actions across all crypto markets. This newsletter guides you in making the right decisions and investments about your digital currencies as you go into the new week.

Bitcoin (BTC)

At the start of the week, Monday, October 10, Bitcoin price traded at $19,100. The bears breached the 21-day Simple Moving Average (SMA) to start the second week of October. Bitcoin price has fallen into extremely oversold territory on the Relative Strength Index (RSI). The indicator suggests there will be bounces for countertrend scalpers, but the pumps will likely be short-lived. A pullback into the recently breached moving averages near the $19,300 zone had recently occurred, and the bears produced a strong rejection.

Bitcoin price lost support from the $19,000 barrier as a strong influx of bearish power poured into the market at mid-week. On Thursday, October 13, the peer-to-peer digital currency fell 5% in less than an hour upon the release of US September CPI data that came in higher than expected.

Bitcoin price auctioned at $18,915. An uptick of volume was spotted amidst the decline, while the Relative Strength Index was in oversold territory for the first time since September 8.

Going into the weekend, Bitcoin price traded mid-$19,000 range as the peer-to-peer digital currency was rejected at the $20,000 level following an impressive 10% short squeeze bull run. The short squeeze was catalyzed on Thursday, October 13, after BTC fell 10% in less than 4 hours upon releasing the US September CPI data that came in higher than expected. The news prompted sidelined bears to enter the market and ultimately buy into the smart money trap.

Bitcoin price exchanged hands at $19,346 in the early hours of Saturday. The Relative Strength Index on larger time frames is in the supportive territory of an upcoming bull run, but it is worth noting that lower times have breached extremely oversold conditions. The indicator is an anomalous gesture of more volatile and unpredictable future market days.

Invalidation of the bearish thesis is a breach above the recently rejected crossing 8-day exponential moving average at $19,400. If the bulls can reconquer this barrier, a spike back toward $20,400 could occur, resulting in a 6% increase from the current Bitcoin price. If the bulls do not hurdle the $19,400 barrier, a reattempt at liquidity levels near $18,700 will be a probable outcome.

Ethereum (ETH)

Ethereum price keep testing the patience of holders as it remained bound between the $1,280 and $1,423 levels on Monday, October 10. The recent sweep of the equal lows at $1,315 was a cue for bulls to take over and trigger a quick run-up. Ethereum price lingered above the $1,315 level as buyers refused to take actions. On Tuesday, Ethereum price auctioned at $1,279. The RSI fell into extremely oversold conditions signaling bearish strength.

Ethereum price also created a bear flag pattern, following Bitcoin’s lead. Ethereum price auctioned at $1,222. The 8-day exponential and 21-day simple moving averages also produced a death cross near $1,322, which stands as a firm barrier of resistance.

Analysts believe Ethereum price should climb a bit higher. During the weekend, Ethereum price floated on treacherous waters as the sell-off that occurred on Thursday broke through the September lows. Upon the release of US CPI data, the decentralized smart contract token declined 10% before propelling back into the $1,300 zone.

Ethereum price auction at $1,305 on Friday. Like Bitcoin, the 8-day exponential and 21-day simple moving averages are acting as resistance for the ETH price to ascend higher. Still, the Relative Strength Index has room to climb after the impressive short squeeze. Additionally, no recent divergences suggest a healthy higher is in play. Bears holding on to shorts may be challenged further in the days to come.

Based on the technicals, a hike towards $1,370 stands a fair chance of occurring. Invalidation of a continuation of the countertrend thesis remains intact so long as the $1,255 liquidity level remains unbroken. If the bears breach this level again, the newfound lows at $1,190 will be in jeopardy. ETH may find support near $1,100 or even $1,050, resulting in a 17% decline from the current market value.

Ripple (Ripple)

When the week opened, Ripple price tagged the inverse head-and-shoulders target at $0.5440. After a 13% rally and rejection at $0.5380, the remittance token was likely to retrace to $0.4980 and rebalance the imbalance present there.

However, Ripple price fell back to $0.51 on Tuesday, October 11. Ripple’s XRP price was down 10% since rallying to $0.54 over the weekend. The steep decline showed a slight uptick in volume but still was less than the previous uptrend rally.

XRP price auctioned at $0.49 on Tuesday. The digital remittance token found support from the 21-day SMA and was coiling just underneath the 8-day EMA. The RSI was back above supportive territory after falling into oversold conditions.

On Wednesday, Ripple price slipped lower after the previous week’s rally and hovered above an inclined trend line connecting the higher lows formed since September 21. Moreover, it also slipped below the Point of Control at $0.490, which was the highest volume traded level since September 15.

On Thursday, XRP price witnessed the strongest decline amongst the top 3 cryptocurrencies as the digital remittance token fell 10% following the US CPI release. The Relative Strength Index fell into historically oversold territory on smaller time frames, and an impressive countertrend rally ensued.

XRP price exchanged hands at $0.47 after falling to $0.44. During the decline, the bears breached both the 8-day exponential and 21-day simple moving averages.

Going into the weekend, Ripple price was up 3% on the day after witnessing a 7% increase followed by a profit-taking frenzy. XRP price auctioned at $0.49. After breaching overbought territories earlier in September, the RSI has yet to test the lower support boundaries, which would entice sidelined bulls to enter the market confidently. Additionally, the volume remains sparse compared to the previous bull run.

Combining these factors, the digital remittance token still has a chance to test the $0.40 level as support. Invalidation of the bearish thesis is a breach above the high at $0.56. If the bulls conquer this level, a rise towards $0.61 will likely be underway, resulting in a 24% increase from the current Ripple price.

Cardano (ADA)

On Monday, Cardano price action slipped 1% during the European trading session as ADA bulls tried to break above a red descending trend line that it has been trading above since September. With several confirmation tests, the breakout quickly slipped into a bull trap as equities in Asia started to tank after COVID-19 numbers surged, and more lockdowns are forecast for mainland China.

Cardano price produced a descending triangle which is obtained by connecting the four lower lows and three equal lows produced since May 10.

On Wednesday, Cardano (ADA) price action was blacklisted by investors after again a bad performance last week with all gains of October being erased and replaced by multiple percentage losses. Risk to the downside is more than ever building as yet again price action got underpinned at $0.384. It is a question of time when that level will break as the geopolitics and current market dynamics are not set to change anytime soon.

Cardano price action slipped over 7% in just two trading days and in the process not only printing the worst performance for the month but as well erasing all incurred gains for this month. A huge setback for investors and traders that must be getting frustrated with these squeezes. ADA price got underpinned and bounces off $0.384 for a second time this year.

Cardano price was up 7% after tagging a low of $0.35 for the first time in 2022 on Thursday morning. The recent US Consumer Price Index (CPI) data release prompted the sell-off and increased selling pressure on nearly all crypto assets. Shortly after the decline, a short squeeze took place, wiping out the liquidity of day trading bears.

Cardano price currently auctioned at $0.37 on Thursday. The Relative Strength Index tagged historically oversold levels, which justified early bulls to jump at the discounted ADA price. An influx of volume is also spotted amidst the counter-trend rally.

Cardano price can continue rallying higher, as the $0.40 level shows a congestion zone as a likely target for the early bulls. Still, due to the sharp decline and oversold readings, entering for a long may be extremely risky. A further decline towards $0.35 and $0.32 stands a high chance of occurring.

Solana (SOL)

Solana, the centralized smart contract token, witnessed a 22% decline last month after enticing bulls to go long during a false breakout. An influx of volume surfaced during September’s decline, hinting that the bears are in control of the trend.

On Monday, October 10, the bears produced a spike through a trendline which has provided support for the Solana price throughout September. Solana auctioned at #32.112 as the bears produced a steep decline to start the second week of October. The move south was catalyzed as the bulls were rejected from the 8-day exponential moving average.

By the end of the week, Solana (SOL) price action dropped almost 10% on Thursday during the intraday trading session as US inflation numbers showed price pressures remain elevated. Solana price action saw traders looking for some hope or signals of a turnaround, and one quickly got revealed that led to a massive turnaround in several asset classes. That element was the rental price index that currently points to much lower prices, while in the inflation basket on Thursday, it was still priced highly. This discrepancy acted as a catalyst for the recovery, but traders might be forgetting that the current oil production cuts from OPEC will soon add to higher energy prices yet again, and thus not advocating for a substantial turnaround in inflation for this year.

SOL price currently points to more gains, and from a technical perspective, it makes sense. On a broader or long-term basis, this is not a signal for traders and investors to bring in the big guns and open massive long positions in risk assets, as fundamentally, this inflation number and lower rental prices are just a drop on a hot plate. The bigger picture remains bearish, and the SOL price is, therefore, likely to drop to $26 anytime soon.

Nevertheless, should more and more indicators come in and start to undermine the idea that inflation is indeed tipping over and more indicators are pointing to a turnaround, then expect SOL price to jump above the 55-day simple Moving Average (SMA) and trade near $34. To the upside, a sharp rally could get underway with a price target of $42.90 and the monthly R1 at $38 as pivotal resistance for traders to pause. More upside above $42.90 remains to be seen as the R2 and a previous technical level look like quite strong caps.

TETHER (USDT)

Tether’s price has fallen by 0.01% in the past week. In the last 24 hours, the price increased by 0.01%. Over the past hour, the price has grown by 0.00%. USDT is currently priced at $1.000075. The price of Tether is 18.03% below its all-time high of $1.22.

USD COIN (USDC)

In the past 7 days, USD Coin’s price has risen by 0.01%. In the last 24 hours, the price has increased by 0.01%. The price has increased by 0.01% just in the last hour. USDC currently trades at $1.00. It has reached an all-time high at $1.00.

BINANCE USD (BUSD)

In the last hour, the price rose by 0.04%. A BUSD price of $1.0005 is currently in effect. It has fallen 9.86% from its all-time high of $1.11 in Binance USD. As of right now, there are 21,628,100,610.95 BUSD circulating in the world.

DOGECOIN (DOGE)

There has been a decline of 2.35% in Dogecoin prices over the past seven days. There was an increase of 0.59% in price within the last 24 hours. Just one hour ago, the price increased by 0.49 percent. At the moment, DOGE costs $0.05949 per unit. As of now, Dogecoin is 91.96 percent below its all-time high of $0.74.

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