Crypto Frontline

BTCUSD (Coinbase)

The waiting game continues as Bitcoin remains below a key resistance zone. We’re talking about the daily 200 SMA + the falling upper line of the consolidation channel. So far, buying pressure hasn’t been strong enough to generate a sustained break, meaning there could be more choppiness in the days ahead.

Last week we had the latest US job numbers and markets were enthusiastic about the diminishing prospects of a recession. However, on the flipside, financial conditions are tightening, since yields on Treasuries go up, alongside the US Dollar. Conflicting bullish and bearish signs mean longer-term players should stay on hold.

Short-term traders can still find opportunities and we’ll look for price action clues around $62k or $60k. In line with our expectations, $60k managed to cap the downside last week and the same could happen again.

On the upside, we are waiting for a clear breakout above $66k. That will show commitment from the bullish side that the all-time high will soon be under pressure. We believe the upside will ultimately prevail, but be careful because the month of October is generally very volatile on both sides.

ETHUSD (Kraken)

Ether looks weaker compared to Bitcoin and we say that because the price broke below the triangle pattern discussed last week. Now the price is retesting that key broken area, so it is yet to be seen whether fresh selling pressure emerges.

If the answer is yes, then expect more downside for ETH and we look at $2,200 as the first like of support. Below that, stronger buyers should emerge if the price dips towards $2,000. That should act as a stronger support since it is also a key psychological level.

Our sentiment will shift to slightly bullish only if Ether manages to break and hold above the $2,500 area. That will confirm last week’s dip was a false signal for bears and could trigger short covering. The $3,000 area will be back in the spotlight as long as buyers stay in control of the order flow.

ADAUSD (Binance)

Cardano entered a consolidation phase at the beginning of August and since then the market was unable to generate a new lower low. That comes even though this coin has been under pressure during the entire year.

Such changes in the price action are drawing our attention since they could signal a change in the overall trend. As a result, we are now cautiously bullish on ADA, as long as the price trades inside the channel seen above. If bulls stay in control, we think a new leg up could unfold, pressuring the 45 cents resistance and the daily 200 SMA. Breaking above will unlock the 45 cents resistance area.

Support should emerge around 32 cents, not just because that’s a swing low, but also since the lower line of the channel overlaps there. A confluence of support levels gives more credibility and could draw more buyers in. If not, then the pressure could mount again on the 27 cents low.