Welcome to another crypto market outlook for the 18th of October!
The crypto market remains indecisive, with an overall bearish sentiment this month. As most altcoins continue to melt, it’s hard to stay optimistic, but there’s always a light at the end of the tunnel. How deep will this correction go? And will the market recover anytime soon?
Today, we will cover the following topics:
– Market Heatmap and Fear and Greed Index
– US500 and DXY
– USDT.D, Bitcoin and Ethereum Analysis
– Quotes / Advices
– Closing Remarks
Market Heatmap and Fear and Greed Index
The 7-day crypto heatmap is finally showing signs of hope again, as both BTC and ETH are closing the week on a bullish note, with BTC up nearly 2% and ETH up 0.3%.
The Fear and Greed Index is showing “Extreme Fear” for the first time in months, a sign that the bears might be running out of steam.
US500 and DXY analysis
The US500 remains strong, trading in the overbought zone and hovering around the upper boundary of its rising brown channel.
In the medium term, the US500 has been hovering within a broad range between the $6,500 support and the $6,690 structure.
As mentioned last week, the index rejected the $6,500 support level and pushed higher with strong momentum.
For the bulls to regain long-term control, a break above the $6,700 structure is required. Until then, the bears maintain the upper hand.
The DXY has been gaining strength this week, but it remains overall bearish, trading below the $100 mark, which is currently acting as resistance.
Only if the DXY breaks above this level will the trend shift in favor of the bulls.
The DXY is currently retesting a strong structure marked in blue around the $98.65 level. If this level is broken to the upside, the bulls will take control.
Until then, the overall sentiment remains bearish.
USDT.D, Bitcoin, and Ethereum analysis
As per our latest USDT.D update, it continues to reject the 5%–5.15% resistance zone.
If the 5.15% level is broken to the upside, it could signal a deeper bearish correction for the crypto market.
For now, as long as 5.15% holds as resistance, a bearish USDT.D outlook is expected, which remains bullish for crypto.
For the bears to take over on USDT.D, a break below the rising red channel and under the last low at 4.93% is required.
Meanwhile, as long as the 4.93% level and the channel support hold, the dominant bias remains bullish for USDT.D, which implies a bearish outlook for the crypto market.
As per our latest BTC analysis, it continues to hold above the $105,000 support and structure.
If a daily candle closes below the $105,000 level, further downside toward $100,000, and possibly $95,000 would be expected.
For the bulls to regain short-term control, a break above the last minor high marked in orange at $109,800 is required.
Until then, BTC will remain bearish in the short term.
As per our latest ETH update, it has broken below the $4,000 support, signaling bearish control in both the medium and short term.
As long as the $4,000–$4,100 zone holds as resistance, further downside toward the $3,500 support area remains highly likely.
ETH has been trading within the falling channel marked in orange. As long as this channel holds, a move toward the $3,500 support zone is expected, an area that perfectly aligns with the intersection of the lower red and orange trendlines.
In parallel, for the bulls to regain control, a break above the upper orange trendline and the $4,100 resistance level is required.
Quotes / Advices
Every trader has strengths and weaknesses. Some are great forecasters, others are good at execution. Learn what your strengths are and build on them.
~ Michael Marcus
Closing Remarks
In summary, this week’s market outlook highlights a cautious yet slightly improving sentiment across the crypto space.
While BTC and ETH showed minor gains, the overall tone remains bearish as investors navigate uncertainty.
US500 stays resilient near its upper channel, while DXY remains under pressure below key resistance, both influencing broader risk appetite.
USDT.D continues to hover near a critical resistance zone, meaning its next move could dictate whether crypto extends its correction or finds relief. BTC and ETH remain at decisive levels, with BTC holding $105,000 support and ETH eyeing the $3,500 zone.
