Welcome to another crypto market outlook for the 27th of October!
The crypto market has been challenging lately, with global instability due to conflicts across continents. But is the bull run approaching after the US election? Let’s explore the key requirements for the bulls to take control.
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 week, we saw how the crypto market reacts to war threats. When Israel attacked Iran two days ago, the crypto market took a significant dip.
However, the market appears to be steadily recovering, as shown in the 7-day heatmap, with BTC closing at just -1% and ETH up by +1%.
Overall, not a bad week; much better than expected.
With everything happening this week, the Fear and Greed Index is surprisingly signaling "Greed" for the third week in a row.
As mentioned last week, typically after four weeks of Greed, the index is likely to shift to neutral.
US500, DXY and Gold analysis
With the US election on the horizon, the US500 has been taking advantage of this period to surge as much as possible.
Typically, after US elections, the stock market experiences a dip, so be prepared.
The bulls will remain in control as traders remain optimistic, unless the previous low at $5,647 is broken to the downside.
In that case, a dip toward the lower orange trendline and $5,400 is anticipated.
DXY is also pushing higher toward the upper bound of the red channel, as anticipated in our latest market outlook.
The closer DXY gets to the upper red trendline, the more likely it is that the bears will step in.
If trading is a war between the bulls and bears, the bulls are currently winning decisively.
They will, however, lose their first battle only if the previous low at $103.8 is broken to the downside.
Gold is doing what it does best: pushing higher in times of uncertainty.
However, it’s in a tricky spot now as it hovers within bear territory, near the upper bound of the brown channel and the $2,700 - $2,800 zone.
The bulls are in full control long-term within the green channel and short-term within the red channel.
For a medium-term correction to begin toward the lower green trendline, a break below the lower red trendline and $2,700 is necessary. Meanwhile, gold remains extremely bullish, making a move toward the $2,800 mark very possible.
USDT.D, Bitcoin and Ethereum analysis
As anticipated in our latest market overview, USDT.D is encountering a major support zone around the 5% level.
If the red channel is broken to the upside, the bulls would gain full control, which would not be favorable for crypto.
In the medium term, USDT.D has been bullish, trading within a small rising wedge pattern marked in blue.
As it nears the lower bound of the orange and blue wedge pattern, we can expect the bulls to step in strongly.
BTC was, is, and will always be a powerhouse. Despite the surrounding turbulence, it remains strong within the rising blue channel.
Currently, it’s hovering in a neutral zone, so let's wait for it to approach either the lower bound and demand zone or the upper bound and resistance zone.
This week, BTC rejected the $66,000 level twice, showing resilience.
If the $66,000 level is lost, we can expect a deeper correction toward the $63,000 demand zone.
ETH has been one of the cleanest charts over the past couple of weeks, steadily hovering within the rising channel.
Currently, it’s back near the lower bound of the range and the $2,500 level, so a bounce is expected as long as this support holds.
In our latest ETH update, it broke below the $2,640 structure and dipped sharply.
For the bulls to regain control, a break above the recent high marked in green at $2,570 is required.
Quotes / Advices
The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.
~ Victor Sperandeo
Closing Remarks
In summary, despite global uncertainties, the crypto market showed resilience, with BTC and ETH remaining relatively steady and hinting at potential recovery.
US500 remains bullish but may face a dip post-election, while DXY and Gold show signs of entering bear territory if key support levels break.
USDT.D is testing a critical support zone, and BTC and ETH are holding within established channels, suggesting potential upward moves if support holds.
