Welcome to another crypto market outlook for the 3rd of November!
With only two days left until the election, market volatility is on the rise. Will the bulls seize control, or will bearish pressure persist? Let’s explore the possible scenarios together.
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
After the "Trump Trade" was priced in with speculation that Trump would win, BTC dipped significantly after rejecting the $74,000 all-time high.
This dip created fear among traders as the entire crypto market followed and recorded a bearish week.
Even though the market has been dipping, the fear and greed index remains stubborn and lagging, still signaling greed.
Remember, a few days of greed often signals bearish trends, while a few days of fear suggests bullish potential.
US500, DXY and Gold analysis
A couple of days before the election, the US500 is still rising like a beast.
As mentioned in previous market outlooks, the closer the US500 gets to the $6,000 round number, the more potential the bears will have to take over.
The US500 broke the blue channel; however, it will remain bullish as long as the last major low at $5,636 holds.
The DXY is still in an overextended correction phase within the large falling channel marked in red.
The closer it approaches the upper bound of the channel, the more strength the bears will gather.
Last week, the Dollar Index ranged between the $104 and $105 levels.
The bulls will remain in control in the medium term, unless the last low at $103.69 fails to hold.
With the war accelerating in the Middle East, gold isn’t showing any signs of weakness.
However, from a price action perspective, as mentioned in previous outlooks, gold is hovering around a massive resistance zone and the upper bound of its long-term rising range.
Gold has been in a correction phase this past week, retesting the lower bound of the rising channel in red.
As it approaches the lower trendline and the $2,700 round number, we will be looking for trend-following longs on lower timeframes.
USDT.D, Bitcoin and Ethereum analysis
As mentioned in last week’s USDT.D analysis, it rejected the 5% support precisely and has been bullish since then.
Today, USDT.D is approaching the upper bound of its falling channel marked in red, so expect the bears to kick in soon, which would be bullish for the crypto market.
As expected, USDT.D broke above the 5.15% minor resistance and traded higher in a parabolic manner.
Currently, it is approaching the previous major high at 5.53%. As long as this level isn’t broken upward, the favor will remain with the bears from a medium-term perspective.
As anticipated in our last market outlook, BTC rejected the $72,000–$74,000 resistance zone and traded lower.
The next support level will be the intersection of the lower bound of the blue channel and the orange structure.
As BTC approaches the $66,500 mark, we expect the bulls to win the first battle and finally take over again for another strong impulse movement upward.
ETH is back around the lower bound of the channel and the $2,400–$2,500 support zone.
As long as the lower trendline holds, expect the bulls to step in over the next couple of days.
From a short-term standpoint, ETH has been bearish, trading within the falling channel marked in red.
For momentum to shift from bearish to bullish, a break above the last high at $2,515 is needed.
Quotes / Advices
Stock price movements actually begin to reflect new developments before it is generally recognized that they have taken place.
~ Arthur Zeikel
Closing Remarks
In summary, US500 is approaching a critical $6,000 level with potential bearish momentum but remains bullish above $5,636.
DXY remains in a correction phase and may face bearish pressure near its channel's upper bound.
Gold is showing strength amidst global tensions, but facing a key resistance zone.
USDT.D is approaching resistance, hinting at possible bullish conditions for cryptocurrencies if it reverses.
BTC faces resistance but shows potential for bullish momentum near $66,500.
ETH is testing support around $2,400–$2,500, with bullish opportunities if the trendline holds and $2,515 is broken.
