Since last week, top rank cryptocurrencies showed a significant good performance. Among the top 10 cryptocurrencies, Litecoin with 18.5% growth in price is the first place and Chainlink with 15.5% growth is following Litecoin. Bitcoin also surged to $13200 but couldn’t maintain its position in that price. The question which pops up here is, now that most cryptocurrencies are showing green light, what is the next movement of the market? In this post we are going to have a weekly analysis (19-24 Oct) over Bitcoin and Ethereum to find out how would be the market for the next coming days.
Last Wednesday, Bitcoin experienced $1300 surge and it could reach the R2 level in pivot point indicator, which shows a strong bullish trend. Since the price didn’t drop dramatically right after this surge, it shows the stability of the market. However, there is a possibility that price will drop as RSI confirms, because it stands around 80, which shows overbought condition in the market.
Now we have to wait for the next move of the market. The next move could be a bull run to $13160 or a bearish trend. At the moment the new support points from $12150 to $12450 play significant roles. The reason is that if the price starts to grow again after the mentioned level, we can expect a bull run in the market. But if it continues to drop lower than the support area, we expect that it will drop until the next dynamic support, which is at $11700.
Weekly Analysis (19-24 Oct); Ethereum
Etherem surged $55 and could break the strong resistance level at $395. Now, Ethereum is at $420, which is a dynamic resistance. Although it was a significant growth for Ethereum price, it doesn’t seem a strong trend. There are two reasons for that. First of all, the RSI stands around 65 and the second reason is that ADX indicator still did not reach 30. Here we have two scenarios. The Ethereum price will break its last ascending line, otherwise the price will drop. In case the price drop, the support line at $395 plays a significant role. Because if the price drop below this level it will continue to go lower until $385. But, if it starts to surge at $395, there is a chance to break the dynamic resistance line.