Crypto Frontline

BTCUSD (Coinbase)

After a couple of days of consolidating, Bitcoin bulls seem to be back at it. We are now seeing the price edging up and the $70k resistance is back in the spotlight. Thus far the bullish move continues to be intact and given the price retested the $66.6k role reversal area makes us even more confident that we could see more gains in the upcoming days.

We’re in the last week of October and November seasonality is generally more positive. Combined with a favorable technical picture, that should translate into an extension higher. Still, the main risk event would be the US election next week. A clear outcome on who won should be risk-on, regardless of the winner.

It will be trickier if it takes longer to determine the next president, or if one of the candidates challenges the result. We advise you to watch activity in the US Dollar and Treasury yields since that could dictate what happens with riskier assets.

Back to BTC, we are bullish as long as the price keeps trading above the daily 20 EMA + $66k area. We will only shift to a bearish stance if Bitcoin breaks below the $63k area impulsively. That will be a sign of weakness.

ETHUSD (Kraken)

Ether displays a choppier performance and we see that the price dipped back inside the triangle formation last week. However, the bottom line acted as support and now we see buyers gaining control of the order flow.

The price is cheaper now, so those interested in going long can do it while placing stop losses below $2,340, a key support zone. We expect further gains during the upcoming days, as long as Bitcoin does the same.

Clearing out $2,600 would be the first bullish sign and after that, we’ll shift our attention to $2,720. We still believe this is a bottoming formation and Ether will be able to bank more gains in the upcoming weeks.

Our view will be negated only if the price breaks impulsively and holds below $2,200. But even in that scenario, shorting doesn’t seem right from a risk management perspective.

BNBUSD (Binance)

Binance Coin is slowly edging up, but gains are small. The price has been consolidating higher since August and as we move forward, the biggest challenge will be overcoming the $630 – $645 key resistance area.

If buyers break and hold above that, then we’ll likely see a continuation towards $700. Strong selling around the key resistance might be an early sign of weakness. BNB has to hold above the daily 200 SMA.

In case a break below occurs, that will put pressure on $540 first and then $500. As one of the largest exchanges in the market, Binance benefits when BTC and altcoins are moving up. A positive performance during the last 2 months of the year could act as a boost for BNB.

But it would help if you remained cautious since the coin has been rather choppy. The RSI has also fluctuated in between oversold and overbought conditions.