Latest Market Overview 22nd Oct: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA

The Bitcoin market is finding support between the $66,500 and $65,000 levels, with inflows into Bitcoin exchange-traded funds (ETFs) indicating that traders are taking advantage of the price dip. Will altcoins follow suit?

Bitcoin (BTC) has dropped below $67,000 after closing the previous week above $69,000, marking its highest close since early June. Despite this decline, investor interest remains strong. Data from Farside Investors shows that on 21 October, US-based Bitcoin ETFs saw inflows of $294.3 million.

When an asset spends a prolonged period trading within a range, it often requires a significant catalyst to break out of the consolidation. The upcoming US elections might serve as such a trigger for Bitcoin. Some believe that a win by former US President and Republican candidate Donald Trump could drive the cryptocurrency higher.

While Bitcoin’s long-term picture remains intact, the short-term is showing signs of weakness. Popular X account Emperor told its followers that a drop from $62,000 to $63,000 could be a buying opportunity.

Could Bitcoin and altcoins bounce off the current levels, or will they fall further? Let’s analyze the charts to find out.

S&P 500 Index (SPX) Market Analysis

The S&P 500 Index is in an uptrend, but the rally is facing minor resistance at 5,878. The price could correct to the 20-day exponential moving average (5,774).

If the price rebounds off the 20-day EMA with force, it will signal that the sentiment remains bullish, and traders are buying on dips. The bulls will then make one more attempt to push the index to 6,000. Sellers will try to halt the rally at 6,000, but if the bulls prevail, the next stop could be 6,221.

On the contrary, a break below the 20-day EMA will weaken the bullish momentum. The index could then dive to the 50-day simple moving average (5,652).

US Dollar Index (DXY) Market Analysis

The US Dollar Index rose vertically after breaking out of the 101 level on Oct. 1. Buyers continued the momentum and pushed the price above the 103.54 resistance on Oct. 17.

The bears tried to tug the price back below the 103.54 level on Oct. 18, but the bulls held their ground. Buyers have kicked the price above the near-term resistance of 103.87, opening the doors for a rally to 105.

This optimistic view will be negated in the short term if the price turns down sharply and breaks below 103.42. The index may then slump to the 20-day EMA (102.75). Sellers will have to sink the index below the 20-day EMA to signal a comeback.

Bitcoin (BTC) Market Analysis

Bitcoin turned down sharply from the overhead resistance of $70,000, indicating that the bears are active at higher levels.

The $66,500 to $65,000 zone is likely to act as a support on the downside. If the price rebounds off the support zone with strength, it will signal a higher low formation. That will improve the prospects of a rally to $72,000. Buyers are expected to face significant resistance in the $72,000 to $73,777 zone.

The bullish momentum will weaken on a break and close below $65,000. The BTC/USDT pair could then sink to the 50-day SMA ($62,117).

Ether (ETH) Price Analysis

Ether broke above the resistance line of the symmetrical triangle on Oct. 20, but the bulls failed to push the price to $2,850.

The bears are trying to yank the price below the 20-day EMA ($2,573). If they can pull it off, it will signal that the markets have rejected the breakout. The ETH/USDT pair could then slide to the 50-day SMA ($2,485). 

Contrary to this assumption, if the price bounces off the 20-day EMA with strength, it will indicate buying on dips. The bulls will then again try to propel the pair above the $2,850 resistance and start the rally to $3,400. 

BNB Price Analysis

BNB turned down from $612 on Oct. 21, indicating that the bears are fiercely defending the overhead resistance at $635.

The first support on the downside is the 20-day EMA ($585). If the price bounces off the 20-day EMA with strength, it will signal a positive sentiment. Buyers will then again attempt to overcome the barrier at $635. If they succeed, the BNB/USDT pair could accelerate toward $722.

Conversely, if the 20-day EMA cracks, the pair may drop to the 50-day SMA ($564) and later to $527. That will indicate the pair may remain stuck inside the range for some more time.

Solana (SOL) Price Analysis

Solana closed above the $164 overhead resistance on Oct. 20, completing a bullish ascending triangle pattern.

However, the bears are putting up a tough fight and are trying to pull the price back below $164. If bulls successfully defend the $164 level, it increases the likelihood of a rally to $189.

Conversely, if the price dips and maintains below $164, it suggests that the markets have rejected the breakout. The SOL/USDT pair could then descend to the 20-day EMA ($153). If the price bounces off the 20-day EMA, the bulls will make one more attempt to start the up move by pushing the pair above $172.

XRP Price Analysis

XRP bounced off the uptrend line on Oct. 20, but the bulls could not push the price above the 50-day SMA ($0.56).

The bears will try to seize the advantage by pulling the price below the uptrend line. If that happens, the XRP/USDT pair could drop to $0.50. Buyers have protected the $0.50 level on two previous occasions. Hence, they will again try to do that.

Alternatively, if the price turns up from the uptrend line and breaks above the 50-day SMA, it will signal that the bulls are back in the game. The pair will then try to reach the overhead resistance of $0.64.

Dogecoin (DOGE) Price Analysis

Dogecoin rose above the symmetrical triangle pattern on Oct. 18, but the rally is facing resistance near $0.15.

The DOGE/USDT pair could retest the breakout level from the triangle. If the price rebounds off the resistance line, it will signal that the bulls have flipped the level into support. Buyers will then again try to thrust the price above $0.15. If they succeed, the pair could rally to $0.18.

This positive view will be invalidated in the near term if the price turns down and breaks below the 20-day EMA ($0.12). The pair may then plummet to the support line of the triangle.

Toncoin (TON) Price Analysis

Buyers have failed to push Toncoin above the moving averages, indicating a lack of demand at higher levels.

The bears will try to drag the price below the $5 support. The pair may retest the $4.72 to $4.44 support zone if they can pull it off. This is an essential level to watch because a break and close below the zone will complete a bearish head-and-shoulders pattern, starting a downtrend.

If the bulls want to prevent the downside, they will have to quickly drive the TON/USDT pair above the moving averages. The pair could then rise to $6 and subsequently to $7, which is likely to act as a solid hurdle. 

Cardano (ADA) Price Analysis

Cardano broke above the moving averages on Oct. 20, but the bears have not allowed the price to sustain above the $0.37 resistance.

The flattish moving averages and the RSI near the midpoint do not clearly favor the bulls or the bears. If the price rises from the current level and breaks above $0.37, the ADA/USDT pair could rally to overhead resistance at $0.40.

Contrarily, if the price skids below the moving averages, the bears will try to sink the pair below $0.33. If they do that, the pair may decline to $0.31, where the buyers are expected to mount a strong defence.

Source – Rakesh Upadhyay