The crypto market experienced a calm weekend with no significant volatility. Here’s an analysis of the market situation for Bitcoin (BTC), Ethereum (ETH), and gold (PAXG) as of Monday, October 9.
Bitcoin (BTC)
Bitcoin is currently trading between a support range of $27,500-$27,700 and resistance levels of $28,250-$28,550. Currently, no distinct short-term trend is evident on its chart. Considering Bitcoin's upward trajectory since September 11, a breakout to the upside seems plausible.
Subsequent resistance stands at $28,800, followed by a more expansive selling range of $29,100-$29,500. If buyers can secure a position above this latter range, Bitcoin might further its upward momentum, potentially reaching its annual high.
Should the asset decline, it could find support at the $27,200 mark, and within the $26,700-$27,000 bracket. A deeper dip could pull it into the $26,000-$26,300 range, especially if confronted by substantial negative market news.
BTC chart on the H2 timeframe
Ethereum (ETH)
Ethereum is also navigating within a support zone of $1,600-$1,620 and a resistance range of $,1655-$1,672. Over the past weekend, its trend leaned more bearish.
If the downward pressure continues, Ethereum could retreat toward the $1,557-$1,582 area and might even touch the previous month's low of $1,531. This scenario is more plausible if Bitcoin also trends downward.
Ethereum's progression is closely tied to Bitcoin due to their high correlation. If Ethereum breaks its current resistance, it might aim for a peak of $1,714 and subsequently the seller's territory of $1,733-$1,746. However, any significant upward movement hinges on the broader market's liquidity and any impactful news triggers.
ETH chart on the H2 timeframe
Pax Gold (PAXG)
Last week, gold extended its decline, hitting a low at $1,821. Nonetheless, the buying zone of $1,800-$1,834 held firm, leading to a slight rebound in PAXG, which is currently trading around $1,860.
The local trend for PAXG is bearish. It would be reasonable now to anticipate a challenge to the resistance area of $1,880-$1,900 to understand the true intentions and sentiments of investors. Breaking through this range would pave the way for gold to target the $1,915 level and potentially retest the $1,955-$2,000 region.
Should the decline continue, the next logical target would be to surpass the recent low, dipping below $1,790.
PAXG chart on the Daily timeframe
On October 12, the US will release its updated Consumer Price Index (CPI), measuring inflation levels. The forecast currently predicts a 3.6% CPI, implying a potential 0.1% decrease in inflation. Any deviation from this forecast could impact various markets, including cryptocurrencies.
If the CPI decreases by more than 0.1%, it may signal a faster economic recovery and potential growth in financial markets.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNCrypto editorial board regarding the market situation. 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 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.
Initial materials
This analysis was informed by the following educational materials and articles from GNCrypto:
