BTC, ETH and PAXG Price Analysis for October 16, 2023

Bitcoin successfully bounced from its support range between $26,600 and $26,900, testing a subsequent high at $27,900. Currently, it's hovering around the resistance level of $28,000-$28,500.

Should the bulls sustain their drive and secure a foothold above this resistance, BTC could venture towards a new local high within the $29,000-$29,500 range, potentially pushing into the $30,300-$31,800 sellers' territory and setting a fresh yearly high.

Conversely, facing resistance within the $28,000-$28,500 territory could propel Bitcoin into a deeper correction, potentially retracing to levels like $26,000, $25,500, or even the buyer zone of $24,000-$25,000.

Over the past month, Ethereum's correlation with Bitcoin's price has notably weakened. When Bitcoin rises, Ethereum doesn't match its momentum, causing any upticks to be short-lived. 

For example, while Bitcoin rose 4% in one morning, Ethereum only edged up by 1.4%. Currently, the ETH price is pinned between the support level of $1,520-$1,550 and resistance at $1,590-$1,615.

Should BTC maintain its upward trajectory, we might see a resurgence in Ethereum's buying interest. Above the current resistance, there's a cluster of sell orders at the $1,635 mark and within the $1,654-$1,672 zone. Yet, as long as ETH stays below $1,700, its short-term trend appears bearish. 

If buying momentum wanes, Ethereum might dip back to the $1,520-$1,550 bracket, potentially seeking a floor at the pivotal $1,500 mark.

Consistent with earlier predictions, gold investors demonstrated resilience within the $1,800-$1,835 range, propelling PAXG up by 6% within a week. 

The asset is now trading near the resistance zone of $1,910-$1,936. The current goal is to extend the bullish momentum, aiming for the $1,970-$2,000 resistance area and possibly even the annual high of $2,052. A brief retreat to the $1,870 region, if the bullish trend remains intact, is also plausible. 

Yet, if market sentiments turn sour, PAXG could revert to the $1,800-$1,835 range and might even touch a local low near $1,750.

This week, several key economic updates are expected. Notably, the core index and US retail sales data will be unveiled on Tuesday, October 17. Building permit figures and crude oil inventories are set for release on Wednesday, October 18. Additionally, on Thursday, October 19, we'll see the initial unemployment claim numbers and hear a statement from the Fed Chairman, Jerome Powell. These events could induce substantial fluctuations in conventional financial markets, which could subsequently influence cryptocurrencies, depending on shifts in the US dollar's strength.

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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GN Crypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.

TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.

Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.

К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).

Gray range on the chart — a support zone.

Red range on the chart — a resistance zone.

Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.

This analysis was informed by the following educational materials and articles from GN Crypto: