- Bitcoin is sluggish at $10,400, but the bullish narrative to new yearly highs is building credence.
- Ethereum is staring into a period of volatility as price action to $400 beckons.
- Ripple bulls remain focused on the ultimate lift-off to $0.3 despite the resistance at $0.26
Lethargic trading seems to be crawling into the cryptocurrency market led by Bitcoin. However, it is essential to realize that some selected cryptocurrencies like Bitcoin Cash and NEO are in the green after gaining over 2% and 1.5%, respectively, on the day. The decentralized finance (DeFi) tokens continue to bleed, led by UniSwap (UNI) and Yearn.finance (YFI).
Bitcoin must bring down key resistance for a rally to yearly highs
Bitcoin seems to be at home with the pivotal price action at $11,400. However, most of the short term technical indicators suggest that the flagship cryptocurrency could soon resume the uptrend. At the time of writing, bullish momentum builds above $11,400 while buyers are fighting to slice through the confluence resistance formed by the 50 Simple Moving Average and 100 SMA in the hourly timeframe.
The Moving Average Convergence Divergence (MACD) paints a bullish picture for BTC as it grinds towards the positive region. More resistance is anticipated at the descending trendline, $11,500, $11,700 and $12,000. On the downside, support is expected at $11,300 and $10,800.
BTC/USD 1-hour chart
IntoTheBlock’s IOMAP model reveals the presence of increased selling pressure between $11,431 and $11,760. The supply in this range is brought about by roughly 1.3 million addresses, which previously bought approximately 870,000 BTC. If this resistance is flipped into support, Bitcoin will have a clear path to new yearly highs.
Bitcoin IOMAP chart
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On the downside, the bellwether cryptocurrency is accorded enormous support, as illustrated by the model. Within the cluster of strong support zones, the most robust one runs from $10,389 to $10,737. Here, 1.5 million addresses bought roughly about 1 million BTC.
It is doubtful that Bitcoin will breakdown massively from the current levels due to these support areas. However, it is essential to realize that a retracement to $11,000 could happen before the majestic rally above $12,000.
Ethereum nears the make or breakpoint
Ethereum carries on with the dance between the support at $370 and the short term resistance at $385. On the upside, $390 remains the most vigorous resistance and the barrier to the action above $400. If retested and broken, Ethereum will quickly rush above $400, shifting the focus to $500. However, if the resistance remains intact, a reversal could come into the picture, pulling Ether to the 100 SMA support on the 4-hour chart.
The Relative Strength Index (RSI) is holding above the midline; hence its uncertain losses will occur in the near term. The gap made by the 50 SMA above the 100 SMA shows that buyers have the upper hand.
ETH/USD 4-hour chart
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A spike in Santiment’s Age Consumed metric points to incoming volatility within the Ethereum market. Usually, spikes in Age Consumed precedes a massive price movement. For instance, about 128 million ETH moved on October 14. It is essential to realize that this move surpassed the previous spike of roughly 86 million ETH, yet it led to excellent price action to $395.
Ethereum Age Consumed chart
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Ripple focus remains intact at $0.3
Ripple bulls have not wavered despite the retreat from $0.26. As discussed earlier, the TD Sequential indicator flashed a buy signal on the 4-hour chart. Also, the cross-border cryptocurrency above the 100 SMA and an ascending trendline.
XRP’s immediate upside is capped by $0.25, while the action beyond the 50 SMA will pave the way for gains to $0.26. As the RSI recovers towards the midline, XRP buyers are making a comeback. A forming ascending triangle pattern could also push XRP to higher levels, as long as it is confirmed.
XRP/USD 4-hour chart
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On-chain data by Santiment also displays a bullish picture from the holder distribution metric. Whales are still buying more XRP despite the rejection and stalling at $0.26. For instance, addresses holding between 100,000 and 1 million XRP have consistently increased in the last 30 days, as seen in the chart below.
Subsequently, addresses holding between 1 million and 10 million XRP rose by three from 1,329 on October 13 to 1,332 on October 15. In other words, buying pressure is building behind the cross-border token, which will eventually result in a breakout.
Ripple holder distribution chart
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Daily takeaway
Bitcoin is pivotal at $10,400 but is accorded immense support; subsequently, it is doubtful that it will slide towards $10,000 in the near term. On the flip side, the IOMAP shows that the path of least resistance is upwards and if the uptrend resumes, BTC/USD could rally to new yearly highs.
Ethereum is silently waiting for volatility to spike, giving way for a massive price action due to the recent spike in Age Consumed. Besides, technical analysis shows that if the resistance at $390 is broken, Ethereum might spring above $400 in the near term.
Ripple’s bullish scenario to $0.30 is still intact despite the barrier at $0.26. The TD Sequential indicator presented a buy signal in the 4-hour timeframe. Action past the 50 SMA could allow for gains beyond $0.26, driving XRP closer to $0.26.