Bitcoin (BTC) and Ether (ETH) saw a huge profit reservation after hitting all-time highs. This indicates that traders who bought into the publicly traded Bitcoin exchange have profited after the successful launch of the ProShares ETF (BITO) strategy.
After launching a second ETF linked to BTC futures, digital asset manager Valkyrie, on October 22, bulls attempted to orchestrate a Bitcoin recovery, but faced strong pressure from higher-end sellers. Sales lowered the Crypto Fear and Greed Index from 84 Oct 21 to 75 Oct 22.
Cryptocurrency daily market indicators. Source: Coin360
Strategists at JPMorgan Chase said in a note that BITO is “unlikely to launch a new phase in significantly more new capital in Bitcoin,” and the hype surrounding the product may subside within a week. The strategists noted that capital has shifted from gold exchange-traded funds to bitcoin funds since September, and this “supports the bullish outlook for bitcoin at the end of the year.”
Could Bitcoin and Ether see a deep correction, and what are the critical support levels to watch out for? Let’s have a look at the lists of the top 10 cryptocurrencies to discover.
BTC / USDT
Bitcoin reached a new all-time high of $67,000 on October 20, but the bulls failed to sustain the breakout as bears pushed the price back below the breakout level of $64,854 on October 21. This indicates that sellers are trying to catch up with aggressiveness. of bulls. …
BTC/USDT daily chart. Source: TradingView
Bears attempted to start yielding on October 22nd, but the long week on the daily candle shows that traders are selling at lower profits. A strong support to look for is the 20-day exponential moving average (EMA) ($57,778).
If the price bounces off this support, it means that the mood is still positive and that traders are buying in deflationary periods. This will increase the likelihood of a break above the ascending resistance zone between $64,854 and $67,000. The pair could then rise to $75,000.
On the other hand, if the price drops below the 20-day moving average, sales may accelerate and BTC/USDT may drop to the 50-day single moving average (SMA) ($50,496).
ETH / USDT
Ether broke and closed above the upper resistance at $4,027.88 on October 20. This was followed by another strong rally on October 21, which took the price to $4,375, just above the previous all-time high of $4,372.72.
ETH/USDT daily chart. Source: TradingView
However, the long week and negative close on October 21 suggest that traders may have sold aggressively near all-time highs. The bears are trying to keep the price below the breakout level at $4,027.88.
The high of the 20-day EMA ($3712) and the Relative Strength Index (RSI) in positive territory indicates that the bulls are still in control. If the price returns from the current level, the bulls will make another attempt to push the ETH/USDT pair to a new all-time high.
A breakout and a close below the neck of the inverted head and shoulder (H&S) pattern could indicate the possibility of a deeper bounce before $3200.
BNB / USDT
Binance Coin (BNB) is down from $505.90, which indicates that the bears are protecting the upper resistance at $518.90. Altcoin failed to move down to the 20-day moving average ($455), which is expected to provide strong support.
BNB/USDT daily chart. Source: TradingView
If the price jumps from the 20-day moving average, the BNB/USDT pair may make another attempt to top $518.90. If they are successful, the pair can lift towards the $554 target model.
The bullish 20-day EMA and the RSI are in positive territory, indicating that the bulls have an advantage. This advantage can turn in favor of the bears if the price reverses down and falls below the moving averages. Sales could be boosted further by a break below $392.20.
ADA / USDT
Cardano (ADA) broke out of the 20-day EMA ($2.18) on Oct. 21, but the bulls failed to push the price above the symmetrical triangle resistance line. This indicates that the bears are aggressively defending this level.
ADA/USDT daily chart. Source: TradingView
The sellers are currently trying to push the price below the triangle support line. If they succeed, it means that the balance between bulls and bears has shifted to the negative side.