Here is our first October altcoin update where we briefly discuss what happened in the previous month and what we anticipate to happen in the markets in the near future.
Despite a small bounce off of the 0.006647 lows from yesterday over the past 24 hours the 3-day chart below continues to point to lower prices considering SCMR is still painting red signals on mostly bearish candle formations while market structure remains broken, the moving averages continue to fall, dynamic resistance is still building overhead, the A/D line remains heavy, and the Ichimoku Cloud continues to move to the downside, therefore, we'll stay patient for lower prices before getting active on the long side again.
XMRUSD has barely moved over the past few days which has kept the current candle formation small and relatively neutral while the top of the upper demand area provides some short-term support, decent signs for the bulls moving forward, however SCMR is still printing red signals while the moving averages fall, new dynamic resistance emerges overhead, and the momentum and volume indications remain lackluster so we still think that there is a good chance that the 50 $ area is visited in the not too distant future.
ETHBTC is still treading water below 0.022 on neutral price action and uncertain short-term technicals, although the 3-day chart below continues to look fairly good considering SCMR is still printing bright green signals on intact market structure and still favorable momentum and volume indications so there remains a good shot at a breakout above 0.022 by week's end. The rising EMA's confirm this view, although if 0.022 is not broken by the weekly close then the bears are likely to return early next week and even if a breakout does materialize there is MA and supply area resistance around 0.024 so upside might be limited over the shorter-term no matter what.
Yet again ETHUSD is in the process of canceling an SCMR CR UP on a red signal and bearish candle formation while the market structure remains broken and heavy, none of which bodes well for the bulls moving forward, and neither do the falling EMA's or the lackluster momentum oscillators. The fact that the 50 SMA is now acting as resistance is not a great sign either, however the volume indications remain strong and the long-term demand area is attracting buyers so while upside is still capped well below 200 $ downside is likely limited as well hence our continued call for more consolidation between 165 - 185 $ over the coming days.
LTCBTC has gotten pretty boring over the course of this week as price continues to tread water in the mid-0.006's on red SCMR signals and mixed candle formations while shorter-term market structure remains intact but longer-term structure is still firmly bearish, all confirming our forecast for more consolidation but with a bearish bias that remains in play moving forward. The flatlining EMA's and the mixed momentum oscillators confirm the neutral technical conditions overall, and the falling SMA's, lackluster volume indications, and bearish Ichimoku Cloud confirm the bearish bias, hence we see no reason to change the current outlook for more sideways action with an eventual test of the low-0.006's.
LTCUSD has found support at the 50 $ level over the past few weeks but the technicals remain a concern considering SCMR is still printing red signals while the market structure remains broken and multiple levels of dynamic resistance are now actively building overhead, so we're staying cautious until further notice. The falling moving averages and mixed momentum and volume indications are confirming our caution, although it looks like sub-50 $ prices could be nice longer-term entries hence we think buyers will continue to nibble on pullbacks below that level.
Today we begin our quarterly coverage of ZRXBTC and we'll start with a look at the trusty daily chart where we can see that the market has been in a bullish posture over the past few weeks thus keeping SCMR signals bright green and shorter-term market structure favorable, which is all fairly good news for the bulls moving forward. So are the rising EMA's, although the good news stops there given that the falling 50 SMA has been acting as resistance and has sparked a small but bearish shooting star candle formation while the other SMA's fall as well, the momentum and volume indications are lackluster, and the Ichimoku Cloud is firmly bearish so we want to stay cautious until the bulls prove themselves via a convincing breakout above the 0.0000282 level.
We'll also start coverage on LINKBTC, one of the newest coins that we've analyzed in awhile, and at least from a technical perspective the prospects are pretty good considering price is moving swiftly higher off of the mid-September lows which has confirmed bullish medium-term market structure and eventually led to the bright green SCMR signals that we see emerging this week. In fact, the green signal today is coming on a relatively large bullish candle formation that has sparked new dynamic support below the market while all of the moving averages move higher and the momentum oscillators still have some room to run, so we think price is likely to continue to rally up into the 0.00025 area over the next few days. That said, volumes are not that impressive, the Ichimoku Cloud is slightly bearish out in front of the market, and resistance gets quite strong around that 0.00025 level which is where we think a pullback is likely to materialize.
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