What Will Happen to Altcoins Now? Bitcoin (BTC) Price Analysis
Altcoins returned a significant portion of their gains amidst the volatility in Bitcoin (BTC) price. So what’s next? Bitcoin price is currently trading at $27,560. Closing above the $27,600 region could sustain the uptrend. However, the apprehension over upcoming data and declining volumes on Friday are not giving much confidence to the bulls.
Bitcoin (BTC) Analysis
Yesterday, US 10-year yields surpassed 4.8% and reached the 2007 peak. Jeffrey Gundlach, the CEO of DoubleLine Capital, stated that with the 35 bp level of the spread between 2-year and 10-year yields, a recession is imminent. Arthur Hayes, the former CEO of BitMEX, says that intervention is now expected as the spread between short-term and long-term interest rates narrows. Otherwise, there could be chain company bankruptcies.
The latest CoinShares report showed that institutional demand is slowly returning to crypto. A net inflow of $21 million was reported at the beginning of the week. So what’s next for Bitcoin price?
Since the beginning of April, we have seen a decline in volume to the lowest levels since mid-2019. We have even seen older lows during this tight period. What has happened in the past 3 months is profit-taking at resistance levels. BTC rises after a turbulent period and returns to previous levels or even deeper zones with sales.
The same thing happened again in the last resistance test for BTC, creating a long upper wick and sacrificing short-term gains. Bears tried to increase their advantage on October 3rd, but the bulls held on at $27,160.
The upward 20-day exponential moving average and RSI indicate that the price could move again to reclaim $28,143. A close above this level would activate a double bottom formation with a target of $31,486.
However, if BTC closes below $26,903, the expectation of an uptrend diminishes and the price could melt down to $24,800.
Ethereum (ETH) Analysis
The approval of Ethereum ETFs was good, 9 approvals were even better, but the total volume reaching $2 million on the listing day was a disappointment. This raises the idea that even if a spot BTC ETF is approved, there may not be a rush to the markets under these conditions.
ETH price sharply reversed from the $1,746 resistance on October 2nd. The 20-day EMA and RSI are flattening, indicating that the sideways trend may continue. If there is a rise fueled by BTC, the $1,746 level could be surpassed, targeting $1,961.
However, if the decline continues, $1,531 will be in the bears’ radar.
Disclaimer: The information in this article does not constitute investment advice. Investors should be aware of the high volatility and thus risk associated with cryptocurrencies and should conduct their own research.