Crypto Frontline

Weekly Crypto Analysis October 16-22, 2023

Weekly Crypto Analysis October 16-22, 2023
October 16
10:07 2023

BTCUSD (Coinbase)

weekly crypto analysis

Source: TradingView

Although some BTC selling can be spotted last week, we can see that sentiment has improved this Monday. The price is back up, close to the daily 200 SMA, which acted as resistance for a couple of weeks.

Given the rising geopolitical tensions in the Middle East, it looks like Bitcoin is treated as a safe haven. We view the $26,000 – $25,250 as a key support area and a place where bulls could resume in force if a pullback occurs.

The market entered a period of consolidation after the August slump and now the price action suggests a bottoming. With that being the case, we believe there is scope for further upside. The main resistance lines to watch are $28,500 and $30,000.

On the flipside, a short-term ascending trend line popped up and backed by the daily 20 EMA, should act as support in the face of shallow selling. Traders should remain cautious, since a major escalation in the Middle East could trigger flight to safety, propping up the USD. This won’t be a favorable environment for risky assets.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

Last week we mentioned that Ether is locked in a range and the price could go either way. Sellers ended up in control and the price retested the $1,520 key support, which also happened to be our bottom of the ranging structure.

The price bounced for 4 days in a row, yet looking at the bigger picture, this isn’t the kind of framework you want when buying. Instead, each push higher is met by even stronger selling pressure.

Because of that, we think there is a high risk of Ether breaking below $1,500, which will open more potential downside towards $1,400. The bearish tilt will be in place if the price continues to trade below the daily 20 EMA.

A break above the EMA and the market treating it as support will be an initial sign suggesting the order flow shifted in favor of buyers. We would expect ETH to head towards $1,700 in that case.

XRPUSD (Kraken)

XRPUSD technical analysis

Source: TradingView

Despite a win against the SEC, XRP failed to build on the gains that followed after the news spread across the market. Instead, traders and investors chose to de-risk after the price hit the 90 cents area.

We are back to square one and for the first time, XRP treated the 47 cents level as support. Ironically, that’s where the July surge started. That level is respected so you should do the same. Hence, a continuation above it could mean a larger move up until the daily 200 SMA or the 56 cents resistance.

Conversely, if XRP breaks and holds below it, bears will be in control of the order flow, and we would expect the price to weaken towards 41 cents. Although the price could be choppy in the near term, we believe there is scope for further selling. Given the market retraced all gains after the pump, big buyers would want to enter and cheaper prices.


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