The Crypto Vigilante Crypto Market Update – (October 2, 2020)

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October 2, 2020.

Crypto Market Commentary & Outlook

Bitcoin (BTC) Technical Analysis & Outlook

2020 continues to usher in the unexpected, and this time it’s news that US President Donald Trump has been diagnosed with Covid-19 thus putting pressure on the legacy markets as uncertainty increases heading towards year-end, and we expected to see more downward pressure on BTC as well given lingering worries regarding the BitMEX news and highly uncertain short to medium-term technicals but this is not what is currently materializing. BTC prices remain relatively stable in the $10,500 area for the time being, a good sign for the bulls, one that will likely gain more credibility if the bulls can defend $10k through the weekend and into next week.

TradingView Bitstamp BTC/USD daily linear chart

We’ll begin this last update of the week with a look at the daily chart where we can see that BitMEX selloff yesterday barely registers on the medium-term richter scale while the 100 SMA acts as support and the 200 SMA continues to rise, so the bulls are certainly still in this fight. The volume indications also continue to favor the bulls for the time being also, however the falling 50 SMA, the lackluster momentum oscillators, worrisome shorter-term market structure, and the development of a bearish pennant/triangle has us thinking that it’s going to be a coin flip whether or not the bulls can defend $10k moving forward.

TradingView Bitstamp BTC/USD weekly linear chart

We’ll also zoom into the weekly chart for a closer view of the longer-term outlook which continues to look pretty good for the bulls overall considering that medium-term market structure remains intact while all of the moving averages continue to rise and the volume indications remain bullish. We also like the fact that the top of the upper demand area continues to act as support while price gets further away from the broken downtrend line, however the momentum oscillators still have some recharging to do and there is quite a bit of room to move lower within the aforementioned demand area so we’re keeping the door open to a final move down to the $8 – $9k region before the bull market begins in earnest.

Monero (XMR) Technical Analysis & Outlook

XMR/BTC

TradingView Binance XMR/BTC weekly linear chart

It’s no doubt been a good week for the XMR/BTC bulls considering that price moved above the key 0.010 level for the first time since June of 2019 thus helping market structure while the 50 SMA picks up some steam to the upside, so we continue to think that the general bias is higher through year-end. Having said that, the current weekly candle is quite bearish right now following a selloff at the falling 100 SMA over the past 24 hours and the volume indications remain lackluster so we think the market needs time to establish new support in the low-0.009’s before a sustainable move above 0.010 materializes.

XMR/USD

TradingView Bitfinex XMR/USD weekly linear chart

Unfortunately for the XMR/USD bulls price has sold off back below the $100 level recently thus sparking a bearish candle formation that is keeping a shift to bullish medium-term market structure from being confirmed, so consolidative chop between $90 – $110 seems likely until further notice. The stagnant volume indications and almost overbought momentum oscillators also suggest some choppy sideways action over the coming days, however the moving averages continue to turn bullish and are close to crossing so once the bulls can establish a weekly close above the $106 level we think the market will be off to the races.

ChainLink (LINK) Technical Analysis & Outlook

LINK/BTC

TradingView Binance LINK/BTC daily linear chart

LINK/BTC has been heading lower over the course of this week thus breaking back below the 100 SMA while medium-term market structure remains bearish and candle formations are still lackluster, not great news for the bulls moving forward. Neither is the falling 50 SMA or the bleeding A/D line, therefore we expect lower prices over the coming days, however oversold momentum oscillators, a very bullishly divergent MACD, and dwindling exchange volumes tell us that the bulls can end this mini-bear market with a hold of the 0.00070 over the next few weeks.

LINK/USD

TradingView Kraken LINK/USD daily linear chart

LINK/USD is under pressure heading into the first weekend of October thus pushing price below the 100 SMA and keeping shorter-term market structure bearish and heavy while the momentum oscillators recharge once again, all pointing to a downward bias over the near-term. That said, if the bulls can keep price above $7 over the next few weeks then we’ll be ready to call for the resumption of the longer-term bull market (although if bulls lose $6 then we’re in store for a prolonged and more brutal bear market than previously anticipated).

Wownero (WOW) Technical Analysis & Outlook

WOW/BTC

Coinigy TradeOgre WOW/BTC daily linear chart

While the bulls put up a valiant effort last week with some nice spikes to the upside, overhead resistance via the supply areas and the reversing shorter-term moving averages were too much for them to overcome this time around. Since then price has been methodically retracing back down to the top of the upper demand area which is once again acting as support, with the 78.6% Fibonacci level and the rising 200 SMA just below the market to help the bulls should the regional low at 0.00000324 fail, although it certainly looks like it will indeed fail given the momentum and volume indications so we want to stay patient until the mid-0.00000200’s where the 200 SMA very well could provide a buying opportunity.

Good Luck, Good Trading!

Artículo Original : Suscripcion The Crypto Vigilante.