Bulls running out of options

• Bitcoin could settle for consolidation after rejection at $10,700; the downside is heavily supported.
• Ethereum runs into intense seller congestion between $349 and $359 amid a possible breakdown to $320.
• Ripple rejected at $0.26 as exchange inflow thins, the path of least resistance is downwards.

The tug of war is intensifying in the cryptocurrency market, but there is no apparent winner at the moment. The drab action is probably developing into a perfect squeeze ahead of a breakout across the market. However, it is worth mentioning that some digital assets are already trading in the green, defying the bearish wave. For instance, VeChain is up 10% in the last 24 hours. As discussed earlier, REN soared more than 20% following the listing on Coinbase. Other digital assets in the top 100 performing incredibly well are Ocean Protocol, up 22% and Elrond, up 13%.

Bitcoin rejected at $10,700 as bears resume control

After diving to $10,400, Bitcoin embarked on a recovery towards $11,000. However, little progress was made above $10,800. Sellers took advantage of the exhausted bulls forcing the flagship cryptocurrency below $10,600. On the bright side, buyers barricaded the area at $10,550, culminating in a reversal that hit a barrier at $10,700.

Bitcoin is exchanging hands at $10,650 at the time of writing. The immediate upside is limited by the 50 Simple Moving Average (SMA) in the hourly timeframe. On the other hand, the Relative Strength Index (RSI) is leveling at the midline, suggesting that the price will remain sideways in the coming sessions.

BTC/USD hourly chart

It is crucial for the short term parallel ascending channel support to remain intact. Otherwise, the retracement is bound to continue towards $10,600. The nearest significant support is $10,400, but other lower buyer congestion zones include $10,200 and $10,000.

As consolidation takes place, it is essential to realize that Bitcoin whales are accumulating. Santiment, a renowned platform in on-chain analytics, shows the number of addresses holding 10,000 to 100,000 BTC shot up since September 17, from 104 to 111 on October 8. Initially, the increase in the number of whales seems insignificant. However, only when the volume of the coins held is considered that one can start to wrap their head around an eventual rise in buying pressure.

Bitcoin holder distribution chart

IntoTheBlock’s IOMAP model, on the other hand, shows Bitcoin sandwiched between stacks of resistance and support levels. The most substantial hurdle runs from 10,640 to $10,950. Here, roughly 1.8 million addresses previously purchased nearly 1.2 million BTC. If the zone is turned into support, BTC could quickly rally to above $11,000.

Bitcoin IOMAP chart

On the downside, among the multiple support areas, the most vital runs from $10,302 to $10,621. Here, approximately 1.8 million addresses previously bought nearly 1.2 million BTC. Losses below this zone are unlikely to stretch further due to buyers’ high congestion towards $9,000.

Ethereum breakdown seems imminent

Ethereum has been sluggish in the last couple of weeks. Support at $320 was key to the recovery that lost steam slightly above $360 at the beginning of October. On the downside, Ether is holding above support at $330. The smart contract giant is dancing at $338 after correcting below $340. All attempts to sustain gains towards $360 have been thwarted. On the upside, the 50 SMA in the 4-hour timeframe is limiting upward action.

ETH/USD 4-hour chart

Despite the consolidation, Ethereum is inclined to the south, highlighting the growing bearish grip. The Bollinger Bands generally confirm the sideways trading. Similarly, the Moving Average Convergence Divergence (MACD) highlights the bears’ more significant influence amid the consolidation.

IntoTheBlock’s IOMAP shines a light on the rigid resistance zones heading to $360. The most robust seller congestion zone stands between $349 and $359. Here, nearly 856,000 addresses previously purchased roughly 12 million Ether. The action above this range could pave the way for gains towards $380.

Ethereum IOMAP chart

On the flip side, decreasing support suggests that the path of least resistance is downwards. However, the range between $329 and $339 will absorb some of the selling pressure. Here, approximately 438,000 addresses purchased nearly 2.5 million ETH.

Ripple downside eyes $0.23

Ripple bears are back in control after buyers lost momentum at $0.26. The price dipped below the Bollinger Bands middle boundary, allowing XRP to spiral towards the 50 SMA in the 4-hour timeframe, which is likely to absorb some of the selling pressure. The RSI cements the sellers growing influence in the market as it dips beneath the midline. All the technical indicators point downwards with the cross-border token targeting $0.23 and $0.22 support areas.

XRP/USD 4-hour chart

The Santiment exchange inflow metric highlights a significant decrease in the amount of XRP sent to exchanges. The downtrend is reminiscent of the slump in the price from $0.26. The spike to $0.26 was supported by a surge in XRP exchange inflow, which topped 47.1 million on October 6. At the time of writing, the exchange inflow is only 2.7 million, a volume that is too low to support an uptrend.

Ripple exchange inflow chart

Daily takeaway

Bitcoin suffers another rejection at $10,700, bringing to light the tough resistance towards $11,000. On the downside, multiple strong support areas show that price action will remain limited in the coming sessions. Consolidation is bound to take precedence.

Ethereum has slipped into its most robust support range between $329 and $339, according to IntoTheBlock’s IOMAP model. On the upside, a high concentration of sellers is unlikely to give Ether an easy pass to levels above $360.

Ripple’s least resistance path is downwards, hence the possibility of support at $0.23 and $0.23 being refreshed. On-chain data and mainly, exchange inflow shows that the token does not have the volume to support an uptrend in the near term.