Latest Market Overview 28th Oct: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA

Bitcoin ETFs are experiencing robust buying activity, suggesting that market traders view this as a signal that BTC may soon surpass its recent highs.

Bitcoin (BTC) has begun the week on a strong note, with buyers driving the price past the $69,000 resistance level. This development indicates that the upward momentum is still in play.

A key factor contributing to Bitcoin’s impressive performance is the substantial investment seen in Bitcoin exchange-traded funds in the United States. Analyst Alessandro Ottaviani highlighted in a post on X that these ETFs have recorded inflows totalling $3 billion over the past two weeks.

Moreover, the upcoming US elections and the Federal Reserve’s interest rate decision are expected to significantly impact the cryptocurrency markets in November.

Bitcoin whales seem to be using the sideways price action to accumulate more Bitcoin. A chart posted by research firm Santiment on X showed that the number of whale entities — wallets with 100 Bitcoin or more — had increased by 1.9% in the past two weeks.

Could Bitcoin climb above $70,000, boosting purchases in select altcoins? Let’s analyze the charts to find out.

S&P 500 Index (SPX) Market Analysis

The S&P 500 Index entered a corrective phase last week, but a positive sign is that the bulls did not allow the price to skid below the uptrend line.

The trend remains positive as long as the price stays above the uptrend line. If the price continues higher and breaks above the 5,879 resistance, it will signal the resumption of the uptrend. The index could march toward 6,000 and then to 6,221.

This optimistic view will be negated in the near term if the price turns down and breaks below the uptrend line. The index could drop to the breakout level of 5,670. This is a critical level to watch out for because a break below it could start a deeper correction to 5,400. 

US Dollar Index (DXY) Market Analysis

The rally in the US Dollar Index is showing signs of tiring out near the overhead resistance of 104.80.

The immediate support is at 103.93. If this level is taken out, the index could drop to the 20-day exponential moving average (103.25). Buyers are expected to defend the 20-day EMA with vigor. A strong bounce off the 20-day EMA will improve the prospects of a rally above 104.80. The index may then rally to 106.

If bears want to prevent the upside, they will have to yank the price below the 20-day EMA. If they do that, the index could drop to the 50% Fibonacci retracement level of 102.36.

Bitcoin (BTC) Market Analysis

The Bitcoin market has been gradually rising toward the overhead resistance of $70,000, signalling demand at higher levels.

The upsloping moving averages and the relative strength index (RSI) in the positive zone suggest that buyers have the upper hand. The $70,000 level may act as a barrier, but it is likely to be crossed. That could push the BTC/USDT pair to $72,000, where bears are likely to sell aggressively.

The 20-day EMA ($66,452) is the vital support to watch out for on the downside. A break below this support will signal weakening bullish momentum. The bears will be back in the driver’s seat if they sink and sustain the pair below $65,000.

Ether (ETH) Price Analysis

Ether fell below the 50-day SMA ($2,504) on Oct. 25, but the bulls purchased the dip to the support line of the ascending channel pattern.

The price has reached the 20-day EMA ($2,539), which is an important level to watch out for. If the price turns down from the 20-day EMA, the bears will try to sink the ETH/USDT pair below the support line. If that happens, the pair could decline to the $2,150 to $2,111 support zone.

Conversely, if buyers thrust the price above the moving averages, the pair will attempt a rally to the resistance line of the channel. The bears are expected to fiercely defend the breakdown level of $2,850.

BNB Price Analysis

BNB rebounded off the 50-day SMA ($574) on Oct. 26 and rose above the 20-day EMA ($586) on Oct. 27.

If the price maintains above the 20-day EMA, the bulls will again attempt to drive the BNB/USDT pair to the overhead resistance of $635. Sellers will try to defend the $635 level with all their might, but if the bulls prevail, the rally could reach $722.

Contrary to this assumption, if the price turns down and plunges below the 50-day SMA, it will indicate that bears are trying to make a comeback. The pair could then descend to the solid support at $527.

Solana (SOL) Price Analysis

Solana is trying to rally toward the overhead resistance of the range at $210, but the bears are posing a strong challenge at $179.

If buyers do not give up much ground from the current level, the possibility of a break above $179 increases. The SOL/USDT pair could soar to $189, where the bears are again expected to mount a strong defence.

This positive view will be invalidated in the near term if the price turns down and plunges below the 20-day EMA. That could sink the pair to the 50-day SMA ($149), indicating that the bulls are rushing to the exit.

XRP Price Analysis

XRP turned down from the 20-day EMA ($0.53) on Oct. 25 and plunged below the $0.50 support. 

The downsloping 20-day EMA and the RSI in the negative territory suggest that the bears have the edge. Sellers will try to sink the XRP/USDT pair to $0.46, where the buyers are expected to step in.

On the upside, the bulls will have to push and maintain the price above the 50-day SMA ($0.55) to indicate that the selling pressure is reducing. The pair could then attempt a rally to the stiff overhead resistance of $0.64.

Dogecoin (DOGE) Price Analysis

Dogecoin turned up from the 20-day EMA ($0.13) on Oct. 26 and reached the overhead resistance of $0.15 on Oct. 28.

The bears will try to defend the $0.15 resistance, but the rising 20-day EMA and the RSI in the positive territory indicate an advantage to the bulls. If buyers propel the price above $0.15, the DOGE/USDT pair could surge to $0.18.

Instead, if the price turns down sharply from $0.15, it will signal that the bears are active at higher levels. The pair may then again drop to the 20-day EMA. A break and close below the 20-day EMA will open the doors for a fall to the 50-day SMA ($0.12). 

Toncoin (TON) Price Analysis

Toncoin rebounded off the crucial support zone between $4.72 and $4.44 on Oct. 25, but the bulls are finding it difficult to push the price above the moving averages.

Sellers will try to strengthen their position by pulling the price below $4.44. If they manage to do that, the TON/USDT pair will complete a bearish head-and-shoulders pattern, starting a downtrend toward $3.50.

This negative view will be invalidated in the near term if the price turns up and rises above the moving averages. The pair could then climb to $6, which is likely to behave as a solid resistance.

Cardano (ADA) Price Analysis

Cardano bounced off the $0.31 support on Oct. 26, but the relief rally is facing selling at the moving averages. This suggests that the bears are trying to take charge.

Sellers will make one more attempt to sink the price below the $0.31 support. If they succeed, the ADA/USDT pair could resume the downtrend. The pair may slump to $0.27, which is again expected to act as a strong support.

Contrarily, if the price turns up from the current level or rebounds off $0.31 with strength, it will indicate buying on dips. That will improve the prospects of a rally above the moving averages. The pair may then travel to $0.40.

Source – Rakesh Upadhyay