Stock Analysis & Ideas

Cryptocurrencies to Watch for the Week of October 2

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This week’s market breakdown will take an in-depth look into some of the biggest cryptocurrencies, their charts, and the latest news to get a better understanding of where they may go from here.

September was harsh for investors all across the board, living up to its reputation of being the worst month of the year in the financial markets. Now that the market is entering October and the last quarter of the year, it is a good time to take a deeper look at some of the leading cryptocurrencies. As a follow-up to last week’s article, this piece will be going over the cryptocurrencies to watch this week: Bitcoin (BTC-USD), Ethereum (ETH-USD), and Ripple (XRP-USD).

Bitcoin

The largest cryptocurrency held its ground pretty strong last week. Despite the strong selling pressure seen in the equity markets, Bitcoin held the support area (an area on the charts where the buyers are stronger) mentioned last week at around $18,500.

At the moment of writing, Bitcoin is trading above $19,000, showing once again that this level attracts buyers time and time again. Even though the S&P 500 made a new low last Friday, Bitcoin buyers kept it floating above this key level.

If this level continues to hold strong for the remainder of this week, Bitcoin can try and test its next resistance level (an area on the charts where the sellers are stronger) at around $23,000.

However, traders should be advised that in case the support breaks below $18,000, Bitcoin may continue its freefall all the way to the next support area at around $15,000.

Ethereum

Ethereum is up a modest 1% in the last seven days, so not a great deal has changed here from last week’s market breakdown. At the moment of writing, Ethereum is trading just above the support level at $1,309.

Traders should keep a close eye on that $1,300 level, as a daily close below this level can bring the price all the way down to the next support area at around $1,000. However, if strong bullish momentum is to hit the markets this week, the next resistance level to watch is at $1,400. A break and close above that level can create a new bullish move that can take Ethereum to around $1,700.

Ripple

XRP recorded its all-time highest trading volume last week, reaching an astonishing 26 billion dollars in a single day. Despite this impressive record, the sixth biggest cryptocurrency is down almost 9% in the last seven days, as the speculative rally regarding the trial results starts to fade away.

After failing to break above the critical resistance area at $0.55, XRP corrected all the way back down to $0.41 where buyers came back into the markets and managed to push the price slightly to around $0.46. 

If good news from the trial continues to flow in, XRP may try and retest its strong resistance at $0.55. On the flip side, if the sellers regain control, the most significant support area, as mentioned last week, will stay at around $0.32.

Conclusion: The Bottom is Getting Closer by the Day 

As we are now already 10 months into the year, and seven months into the Russia/ Ukraine war, it seems to me that the bottom of the crypto market is getting closer by the day. Most major cryptocurrencies are stretched to the downside, with a series of indicators suggesting a correction to the upside is on its way. Nevertheless, traders need to be aware that the big rally can only start when the Federal Reserve starts to pivot from its interest rate hikes, which could take a few more months to complete 

Disclosure

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