Welcome to another crypto market outlook for the 20th of October!
The crypto market is holding steady, with BTC maintaining its bullish momentum and ETH hovering near key resistance levels. As we approach the end of October, what can we expect next? Here are my thoughts.
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
This past week has been uneventful for BTC, which is usually a good sign for altcoins. Always remember, when BTC is choppy, it often means that big investors are selling some BTC to buy riskier assets like altcoins, aiming to make a quick profit and to accumulate more BTC.
Even though BTC has been calm this week, the market sentiment has shifted toward greed.
As mentioned earlier, greed signals that investors are moving into low market cap altcoins, aiming to make big profits in a short period of time. This phase typically lasts for a week or two.
US500, DXY and Gold analysis
The US500 doesn't seem to be slowing down anytime soon, as it continues to surge in a parabolic manner.
As it gets closer to the $6,000 round number mentioned in our last US500 update, it becomes increasingly likely that the bears will have an opportunity to step in.
As long as the US500 remains within the rising blue channel, the bulls will stay strong and dominant.
Only if the last low at $5,675 is broken to the downside will the bears have the potential to gain control and start pushing.
The DXY isn’t taking a break either, as it is nearing the upper bound of the red channel, as mentioned in our last market outlook on Sunday.
Always remember, a strong DXY typically means weaker stocks and crypto.
The bulls won’t lose the battle unless the last low at $103.045 is broken.
Meanwhile, further bullish continuation toward the structure marked in orange remains in play.
Gold has been outperforming the entire market over the past couple of months, reaching new highs week after week.
Currently, it is entering bearish territory as it approaches the intersection of the $2,700–$2,800 zone and the upper brown trendline.
Gold will remain extremely bullish until the green channel is broken to the downside.
Only then will the bears take control, potentially leading to a correction that could last a couple of weeks.
USDT.D, Bitcoin and Ethereum analysis
USDT.D remains stuck within our 5.09%–5.25% support zone, just as mentioned in our last market outlook.
This marks a crucial zone to monitor because if the 5.09% level is broken to the downside, we can expect a long-term bearish trend that could last several weeks or even months.
The bearish momentum on USDT.D is weakening gradually. As a result, a break above the last major high at 5.38% is becoming more likely, which would shift the momentum back in favor of the bulls.
BTC is, and will always be, a force to reckon with. This week is no different, as BTC remains bullish, trading within the rising channel marked in blue.
The upper bound of the channel aligns perfectly with the round number $70,000, forming a significant potential rejection zone where the bears may step in.
The bulls are, and will remain, in control as long as BTC continues trading above the last low marked in red at $66,700, which aligns perfectly with the previous major high formed in October.
ETH is hovering around a key zone, which is the upper bound of the orange symmetrical triangle and the previous major high at $2,730.
For the bulls to take full control, a daily candle close above $2,730 is required.
In contrast, if the red channel and the last low at $2,620 are broken to the downside, a deep corrective move toward the $2,500 psychological level is expected.
Quotes / Advices
Wide diversification is only required when investors do not understand what they are doing.
~ Warren Buffett
Closing Remarks
In summary, market sentiment has shifted to greed, driving interest in low market cap altcoins.
US500 continues its parabolic rise, nearing a key resistance at $6,000, while DXY also shows strength, typically bearish for stocks and crypto.
Gold remains bullish but is approaching key resistance, signaling potential bearish movements.
USDT.D shows weakening bearish momentum, with a possible bullish breakout.
Both BTC and ETH remain in bullish zones, though ETH is close to a correction if key support levels break.
