Crypto Frontline

BTCUSD (Coinbase)

Bitcoin continued to move up but failed to reach a new all-time high. We see 5 consecutive days of bearish consolidation, but the selling seems to have stalled around the daily 20 EMA again.  That’s good news for buyers since it suggests the bullish move continues to be intact.

However, the attention shifts to the US presidential election taking place tomorrow, so we will very likely have some wild swings until the winner is decided. If the outcome will be clear on Wednesday, then that should act as a tailwind for BTC, regardless of the winner.

The FOMC is also an important event on the calendar, but if the central bank cuts 25 bps as expected, it shouldn’t be a bearish catalyzer. Back to the technical picture, below $66k, we see limited support until the $64k area, where the daily 200 SMA is located.

Buyers have to defend the $62k area to preserve the potential for a new impulsive leg up. If that’s the case, then BTC is poised for new ATHs this month and $80k will become our likely 1^st target.

ETHUSD (Kraken)

The price action we see in Ether is tricky for both buyers and sellers. Given neither side managed to gain substantial ground, this does qualify as a consolidation structure. But, the buyers seem to be entering at higher and higher levels, meaning we might be witnessing a slow bottoming process.

That theory will be in place as long as Ether doesn’t break below $2,300. We think buyers should be able to push the price back up to $2,700 if the risk sentiment improves in the second half of this week.

Breaking above that level is necessary to open more room towards $3,000, where the daily 200 SMA is also located. The RSI doesn’t favor bulls or bears, so the best thing to do is wait until the election is no longer a threat to risk.

If the market breaks below the trend line highlighted on the chart and continues below $2,300 unhinged, then we should expect to see further losses towards $2,000.

ADAUSD (Binance)

Cardano keeps failing around a bearish trend line and that doesn’t bode well for buyers. The price also trades below the daily 200 SMA, which is another sign of persistent bearish sentiment. It looks like the market is once again treating the 20 EMA as a pivoting point, so until that changes, we believe ADA has the potential to dip further.

Support comes at 31 and 30 cents. Below that, the August low at 27.6 cents will matter as well. As we already stated, the election is the main event for this week and as soon as that will clear out, there is scope for some optimism.

ADA must break and hold above 35.6 cents to have a chance at retesting the daily 200 SMA. That will be a bullish development and despite a temporary pullback there, the coin will have better chances of edging up by the end of the year.