The cryptocurrency market experienced a calm weekend. Here’s an analysis of the market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of Monday, October 30.
Bitcoin (BTC)
Bitcoin continues to trade above the $34,000 mark, with the overall trend remaining bullish. Formally speaking, BTC is currently experiencing a sideways movement between the buyer's level at $33,400 and the seller’s level at $35,100, indicative of a temporary equilibrium in force.
Considering the upward trend apparent in BTC’s chart, growth continuation is presently the main focus. Potential next targets for buyers could be the levels at $36,100 and $36,900.
Simultaneously, it is crucial to acknowledge that Bitcoin has been on an upward trajectory without undergoing any corrections for over two weeks now. A course correction before a continuation of the growth would be entirely reasonable and could even serve as a strategic advantage for accumulating long positions in BTC. In this scenario, the asset could retreat to the support levels of $30,700 and $29,900, which remain within the boundaries of the prevailing upward trend.
For buyers, any market corrections will remain safe as long as the long-term support level at $27,000, safeguarding the uptrend, remains unbreached.
BTC chart on the H1 timeframe
Ethereum (ETH)
The market scenario for Ethereum closely mirrors that of Bitcoin due to the strong correlation between the two assets. However, a key distinction lies in ETH’s substantially greater potential for growth within the ongoing upward trend, as it has not yet reached its annual high, unlike Bitcoin.
At present, the asset is experiencing sideways trading, fluctuating between the support level at $1,750 and the resistance level at $1,850. For buyers aiming to continue riding the upward trend, the subsequent targets are the $1,875-$1,905 zone and the $1929 mark.
Should a correction occur, ETH may retract to support levels at $1,705, within the $1,630-$1,658 zone, and between $1,590-$1,610. It’s crucial to acknowledge that altcoins tend to suffer more significant losses than Bitcoin during aggressive downturns. Therefore, attempting to “catch falling knives” by placing limit orders to purchase alternative cryptocurrencies is inadvisable. A more prudent approach would be to wait until market conditions have stabilized.
ETH chart on the H2 timeframe
Pax Gold (PAXG)
After reaching a new peak at $1,993, the momentum in the gold chart has slightly decreased. The asset has been trading within the seller's zone of $1,978-$2,000 for several days now, and the overall positive trend in BTC has not significantly affected PAXG.
Should the upward trend continue and buyers surpass the psychological mark of $2,000, PAXG may aim to retest the $2,020 level, with the potential to reach the yearly high at $2,052.
The current support zone in case of a correction is situated between $1,920 and $1,938. Lower down, the buyer's levels are located at $1,889 and $1,868, and they may be tested as well.
It’s important to highlight that in recent months, gold and BTC have exhibited an inverse correlation; meaning, when one asset rises, the other tends to fall or remain stagnant. This dynamic can serve as an effective example of portfolio hedging, where one asset offers protection against the decline of the other.
PAXG chart on the Daily timeframe
This week's economic news on the market will feature the following events: the U.S. crude oil inventories and the Fed's decision on interest rates (Wednesday, November 1), as well as the overall unemployment rate in the U.S. These events have the potential to influence the volatility of the cryptocurrency market and to determine the future trend for a certain period.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
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 price movement 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.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
