- Bitcoin rejected at $11,800; bulls remain fixated on breaking the critical resistance between $11,800 and $12,050.
- Ethereum confirms support at $380 ahead of a potential breakout above $400.
- Ripple holds onto the 50 SMA support; bulls look forward to an eventual spike to $0.30.
Bulls continue to hold the fort following widespread breakouts over the previous weekend. Nonetheless, the momentum has slowed down across the board, especially for major cryptocurrencies like Bitcoin, Ethereum and Ripple.
While cryptocurrency markets recovered across the board, the G20 finance ministers and central bank governors said in a report that they are committed to developing rules that will guide the launch and operation of central bank digital currencies (CBDCs). The International Monetary Fund (IMF), the World Bank and the Bank for International Settlements (BIS) will also collaborate in the mission.
The report outlined that by 2022 the mentioned parties will have a framework for regulating stablecoins and CBDC’s. The development comes after another report that China is moving very close to launching its sovereign digital currency.
Bitcoin bulls remain relentless in the fight for $12,000
The flagship cryptocurrency is continuing to build on the breakout in the first week of October. Trading above the 50 Simple Moving Average and 100 SMA in the 4-hour timeframe boosted the momentum for a smooth ride past $11,000. On the upside, the resistance between $11,800 and $12,050 was tested but not conquered. BTC retreated slightly to exchange hands at $11,495.
An ascending trendline supports the immediate downside. Buyers are still in control according to the Moving Average Convergence Divergence (MACD). Besides, the 50 SMA is swelling the gap above the longer-term 100 SMA. The action above resistance at $11,600 will pave the way for another assault at the range, $11,800 – $12,050.
BTC/USD 4-hour chart
IntoTheBlock’s “Daily New Addresses” metric reveals an incoming uptrend in the number of new addresses joining the network. Following a sharp dip to roughly 406,000 newly-created addresses on October 10, the figure soared to nearly 476,000 by October 12. The increase recorded in these addresses also took place in tandem with the spike in Bitcoin’s price. In other words, network growth is a bullish indicator for Bitcoin’s value in the near term.
Bitcoin new addresses chart
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Ethereum pauses the imminent spike to $400
The smart contract token continued with the incredible price action but stalled at $395. A reversal came into the picture, forcing Ether to confirm support at $380. ETH/USD is trading at $384 at the time of writing. Since the breakout from around $340, the largest altcoin has sustained gains in an ascending channel. The channel support is in line to offer support even as the MACD sits comfortably in the positive region.
The golden cross supports Ethereum’s bullish narrative after the 50 SMA crossed above the 100 SMA. If the gain-trimming exercise extends, other anchor levels to keep in mind are $380, $360 (50 SMA) and $340.
ETH/USD 4-hour chart
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According to IntoTheBlock’s IOMAP model, ETH has a relatively clear path to $400. The initial but subtle resistance runs from $384 – $395. Previously, about 1 million addresses bought nearly 907,000 Ether. The remaining path to $400 would be easy to tackle.
Ethereum IOMAP chart
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On the downside, immense support can easily be spotted on the model. For instance, the region between $349 and $361 will absorb most of the selling pressure if a reversal comes into the picture. Here, almost 1.1 million addresses previously purchased roughly 14.8 million ETH.
Ripple bulls holding tightly to the hope of a breakout
According to the Bollinger Bands, Ripple is entering into a period of consolidation that could culminate in a breakout. The middle layer of the indicator provides XRP with immediate support. The cross-border token has a market value of $0.257 amid the sideways price action illustrated by the leveling Relative Strength Index (RSI).
Support is envisaged at the 50 SMA in the 4-hour timeframe. Besides, $0.25, the 100 SMA and $0.24 are in line to cushion XRP from alarming declines. The action above $0.26 (immediate resistance) will pave the way for gains to $0.30.
XRP/USD 4-hour chart
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According to Santiment’s holder distribution metric, whales holding between 100,000 and 1 million XRP are accumulating. Over the last 30 days, significant growth in the number of addresses in the range was observed. Continued uptake is likely to add buying pressure behind XRP and eventually, a breakout may materialize. It also confirms the bullish narrative as whales believe a spike is in the offing.
Ripple holder distribution chart
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Daily takeaway
Bitcoin takes a breather from the uptrend after hitting a wall at $11,800. However, buyers remain relentless in the push for action above $12,000. Network growth is reflected by the increase in the number of new addresses joining the network.
Ethereum hit a snag at $395, leaving $400 untested. On the downside, initial support has been established at $400. The IOMAP model shows the absence of resistance heading to $400. Therefore, upward price action is a great possibility.
Ripple is starting a period of consolidation after rejection at $0.26. A breakout is expected to come into the picture. The rise in the accumulation of XRP by the whales exposes the growing buying pressure behind the altcoin.