Key Takeaways:
- The minor relief rally in cryptocurrency markets seems to be fading.
- BTC and ETH continue their struggle to hold above key support levels.
NEW DELHI (CoinChapter.com) — The cryptocurrency market recovery seems to have stuttered a bit, with major cryptocurrencies painting red candles on their daily charts.
The market started the week strong, gaining nearly 6% between Oct 3 and 4. However, bears seem to be selling to profit from relief rallies.
1. BTC/USD Price Chart
The world’s largest cryptocurrency by market volume, Bitcoin prices closed above $20,000 for the first time since Sept 17. The uptrend also helped BTC prices flip their 20-day exponential moving average (20-day EMA, red wave) from resistance to support.
However, the pioneer crypto token now faces resistance from its 50-day EMA (purple wave). If BTC prices manage to flip 50-day EMA resistance, the cryptocurrency token would next challenge resistance near $20,700.
The move above immediate resistance would result in BTC prices breaking out of the multi-week descending channel, providing the token the boost needed to challenge resistance near $21,600 before retreating.
However, given the warnings of a global recession, it seems likely that BTC prices might continue their correlation with traditional asset classes. As such, the cryptocurrency token risks falling to support near $19,600.
A marketwide sell-off could see BTC prices fall 7.5% from current levels to test support near $18,600, which has supported Bitcoin price action since Jun this year. Meanwhile, the RSI for BTC remains neutral, clocking at 53.26 on the daily charts.
2. ETH/USD Price Chart
ETH prices continue to struggle with their 20-day EMA (red wave), with the $1,400 price level still eluding the prime altcoin. However, if Ether prices flip the 20-day EMA resistance, the resulting momentum might help the cryptocurrency token challenge resistance near $1,415.
Furthermore, a sustained uptrend could result in ETH prices rising to $1,510 before corrections pull back prices. Ethereum would need to move above its 50-day EMA (purple wave) to reach $1,510 resistance.
However, as CoinChapter reported, ETH has formed a bearish continuation pattern. If Ether confirms the pattern, the cryptocurrency token might fall to support near $1,270. Moreover, a marketwide sell-off could push Ether to test support near $1,200 before recovering.
Meanwhile, the relative strength index for Ether remains neutral, with a value of 44.38 on the daily charts.
3. RSR/USD Price Chart
RSR prices rose steadily since Sept 21, jumping more than 111% between Sept 21’s low ($0.0052) to reach an intraday high of $0.011 on Oct 2. However, RSR’s uptrend lost momentum as traders started selling to profit from the cryptocurrency token’s uptrend.
Also Read: Crypto Market Price Today: RUNE, COTI, BAT, QNT, LDO, LUNC, UTK, LINK, PYR
Additionally, RSR relative strength index became overbought, and the token responded in a textbook manner. In detail, an overbought RSI often indicates a trend reversal in the cards for an asset. Currently, RSR’s RSI remains neutral at 66.67 but within a stone’s throw of the overbought threshold of 70.
If the uptrend continues, the cryptocurrency token’s 50-day EMA (purple wave) might soon cross above RSR’s 100-day EMA (blue wave), forming a bullish pattern called the golden cross. Traders believe the pattern to be a sell signal.
Hence, RSR might move up to challenge resistance near $0.0099 once the pattern forms. Moreover, strong bullish momentum could see the crypto token push past its 200-day EMA (green wave) to reach resistance near $0.011 before corrections pare gains.
Conversely, an overbought RSI might force RSR prices to fall to support near $0.0089, which previously acted as resistance for the cryptocurrency token between Jun 26 and Oct 1. A marketwide sell-off could result in RSR prices testing support from its 20-day EMA (red wave) near $0.0081 before recovering.
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