Key points:
Bitcoin’s recovery is facing selling at higher levels, indicating that the bears remain in control.
Several altcoins have turned down from their overhead resistance levels, signaling selling on rallies.
Bitcoin’s (BTC) recovery is facing selling on rallies, but a positive sign is that the bulls are trying to form a higher low near $109,500. Lower levels are attracting buyers as seen from the net inflows into US spot BTC and Ether exchange-traded funds (ETFs) on Tuesday, following net outflows on Monday. According to SoSoValue data, BTC ETFs recorded $102.58 million in inflows while ETH ETFs attracted $236.22 million in net inflows.
Even after the recent turmoil, analysts expect BTC to perform well in October. Economist Timothy Peterson said in an X post that historically, a large part of BTC’s October gains come in the second half of the month.
Crypto market data daily view. Source: Coin360
Apart from the seasonal factor, another positive sign in favor of the bulls is the possible end of quantitative tightening as signaled by the US Federal Reserve Chair Jerome Powell. BitMEX co-founder Arthur Hayes said in a post on X that with quantitative tightening over, it was time to buy aggressively.
A note of caution came from trader Peter Brandt, who said BTC may witness a huge shakeout before rising to a new all-time high again.
What are the critical support and resistance levels to watch out for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC turned down from the 20-day exponential moving average (EMA) ($115,945) on Tuesday, signaling a negative sentiment where rallies are being sold into.
BTC/USDT daily chart. Source: Cointelegraph/TradingView
The bears will try to strengthen their hold by pulling the price to the $107,000 support. Buyers are expected to defend the $107,000 level with all their might because a close below it will form a double-top pattern. The BTC/USDT pair may drop to $100,000 and eventually to the pattern target of $89,526.
This negative view will be invalidated in the near term if the Bitcoin price turns up…
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