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.
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.
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.
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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