Crypto Signals Brief for October 10: Continuing to Trade the Range Despite Bullish USD

Last Week’s Market Wrap

After the huge volatility in September in financial markets, this month they are a bit quieter, after the intervention from the Bank of England and Bank of Japan. Risk sentiment improved in the first week of October, which helped cryptocurrencies, and that continued in the first two days of last week as well. Most crypto coins made a jump ini the first two days of last week, and Bitcoin was trading above $20,000 but was unable to make further gains, which was a bearish signal.

The USD weakness was helping cryptocurrencies as well, but eventually, the sentiment improved by the middle of the week which turned the crypto market bearish again. Although, they still closed a week with some small gains. Bitcoin’s market dominance increased to 41%from 39%.

This Week’s Market Expectations

This week the crypto market has started on a retreat, although the pace has been slow and the market is still within the range of the recent weeks. On Thursday we have the US consumer inflation CPI (consumer price index) report which might change the situation, depending on the numbers, although they should be high, which means the FED keeping the rate hike path.

Crypto Signals Update

Last week the volatility declined after the jump in the first two days which we missed. After that the market reversed lower and we have been waiting for cryptocurrencies to reach the bottom of the range where we plan to buy Bitcoin and other digital coins. Right now the market is close to the bottom, so we’re getting ready, so follow our forex signals page for crypto signals too.

BITCOIN Tests $19.000

Bitcoin has been trading sideways, above and below $20,000, although in the last several days BTC has turned bearish and fallen below that level. We saw a test of the $19,000 level while on the upside, an immediate resistance level is near $19,550. The next significant barrier is the $19,700 level and the 100 hourly simple moving average. A successful closing above the $19,700 resistance level might drive the price towards the 50% Fib retracement level of the decline from the $20,443 swing high to the $19,249 low.

BTC/USD – H4 chart

XRP/USD Continued the Bounce

Ripple has been bullish since the middle of last month, surging above $0.50 last week, as the lawsuit against the SEC saw some developments. The price has retreat, so the bullish momentum coned lower a couple of times, but the 20 SMA (gray) has turned into support, holding the price, while the 200 SMA (purple) turned into resistance for some time. Although last week we saw a breakout of the triangle to the upside so the bullish momentum continues.

XRP/USD – Daily chart

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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