- The crypto market is witnessing end-of-month fluctuations, with Bitcoin and altcoins showing volatile movements.
- Despite the recent dip, traders remain optimistic for October due to the historically strong performance in Q4.
- Bitcoin has faced selling pressure, dropping below $64,000, yet it’s still on track for its best monthly gain since 2016.
Analysis of the current state of Bitcoin and other major cryptocurrencies highlights potential gains in the upcoming quarter.
The Upbeat Outlok for Bitcoin in October
Historically, October has been one of the stronger months for Bitcoin, with average gains around 22.9%. Traders are banking on this historical trend, looking forward to potential new highs. According to CoinGlass data, Bitcoin’s performance is indicative of a positive trend despite the present selling pressures.
Influence of U.S. Presidential Elections on Bitcoin
CK Zheng, from ZX Squared Capital, suggests that the U.S. presidential election could serve as a bullish trigger for Bitcoin. The lack of proper economic policies from both major parties regarding debt management might drive investors towards Bitcoin. This speculation is supported by the historic rally of 168% in Q4 of 2020, a period that also included a presidential election.
Bitcoin Price Dynamics
Bitcoin recently closed above $65,000 but soon attracted profit-taking by short-term traders. This pulled the price below the breakout level by the end of September. The 20-day EMA at $62,722 is a critical support level; a rebound here might push the price above $66,500. A failure to hold this level could see the Bitcoin price drop to the 50-day SMA, roughing out a range between $54,000 and $65,000.
Altcoins: Mixed Performance Analysis
Altcoins are also experiencing varying trends. Let’s analyze the specifics of a few noteworthy ones.
Ethereum (ETH) Struggles at Resistance
Despite attempts to move past the resistance line, Ethereum remains range-bound between the 20-day EMA at $2,559 and the resistance mark. Breaking this pattern to the upside could see prices climbing to $2,850 initially and further to $3,400.
BNB’s (Binance Coin) Struggle with Overhead Resistance
BNB encountered resistance at $618, subsequently dipping to the 20-day EMA at $575. If the bulls can propel the price above $635, BNB could target $722. Conversely, dropping below the 20-day EMA might keep it range-bound between $460 and $635.
Additional Major Coins: Performance and Prospects
Other notable coins are experiencing similar market dynamics, where trends are influenced by resistance levels and key support points.
Solana (SOL): Testing Resistance
Solana is eyeing the $164 resistance with the 20-day EMA support at $147. An upward breach might see SOL targeting $188. However, falling below the EMA could maintain a range between $116 and $164 for a while.
XRP: Battling Resistance at $0.64
XRP has been rejected at the $0.64 resistance, with the price likely to revisit the 20-day EMA at $0.59. Strong support here might prompt another attempt at breaking through $0.64, potentially leading to a rally towards $0.74.
Concluding Insights
The crypto market remains volatile, with various coins witnessing resistance at higher levels. Historical performance, notably for Bitcoin, brings optimism for Q4 while external factors like U.S. presidential elections could also play pivotal roles. Traders should keep a close eye on key support and resistance levels to make informed decisions.
