ππ Lose THIS Level and BTC Goes to $20,893!
Overview
Chart #1 - Chainlink (LINKUSDT) Daily Chart
Chart #2 - Bitcoin (BTCUSD) Weekly Chart
Chart #3 - U.S. Dollar (DXY) Daily Chart
Chart #4 - Theta Network (THETAUSDT) Daily Chart
Chart #5 - Fear and Greed Index
Chart #1 - Chainlink (LINKUSDT) Daily Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
The price of LINK is currently trading around the $6.00 level.Β
Over the last week, the $5.50 - $6.00 area has held as support. The price is also completely oversold on the daily time frame. Once BTC starts trending back to the upside, I expect LINK to test the next resistance, which is around $6.70 - $7.00. If BTC continues to retrace and LINK loses the $5.50 support level, the next area of support is at $5.00 - $5.30, last tested in June this year.Β
The general altcoin market has been under pressure in recent weeks, but since markets don't always move in a straight line, I anticipate relief bounces along the way. LINK, being completely oversold, is where I expect a bounce in price very soon.
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Chart #2 - Bitcoin (BTCUSD) Weekly Chart
Chartist: Kyle
(For the chart screenshot, click here.)
Bulls face a challenging task to rejuvenate price momentum.Β
The area highlighted in yellow represents a crucial support level at $24,200. If this is breached, the price will set a new swing low. This would signify the loss of the previous quarter's low and the yearly mid-range, all while the price remains beneath the 21 EMA. Historically, the 21 EMA has proven to be a reliable market indicator.Β
When the price is below this EMA, with the EMA angled downwards, it has typically marked significant downward movements. On the other hand, when the price is above the EMA, angled upwards, it has signaled major market rallies.Β
Should the support be compromised, a potential low at $20,893 might become a reality.
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Chart #3 - U.S. Dollar (DXY) Daily Chart
Chartist: Kyle
(For the chart screenshot, click here.)
As long as the DXY keeps surging upwards, both the crypto and stock markets will find it difficult to rally.Β
Yesterday, the DXY saw a significant upward movement, leading to a pronounced bearish engulfing candle on both the S&P 500 and the QQQ chart.Β
This is not a promising indicator!
Once the DXY shows signs of weakness, both Bitcoin and the stock market are likely to establish a significant low. Until then, the pressure remains downward.
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Chart #4 - Theta Network (THETAUSDT) Daily Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
THETA is another token that has faced price pressure in the past few weeks. Its price has declined by approximately 25% over the last four weeks and is now oversold on higher time frames.Β
In recent days, the price has consolidated within the $0.61 - $0.66 support range. If BTC begins to trend upward again, I expect THETA to challenge $0.71 - $0.75.Β
The daily descending resistance line, from mid-April, will act as additional resistance in that zone. If the price breaks through, the subsequent resistance lies between $0.84 and $0.87.Β
Should crypto continue its downward trajectory and the $0.60 support is breached, the following support stands between $0.54 - $0.57. Dipping below that, there's significant support at $0.38 - $0.40, a level last tested in 2021.
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Chart #5 - Fear and Greed Index
The Fear and Greed Index is sitting at 39 today, indicating Fear.
The highest the index has been over the past seven days is 41, and the lowest is 37.
Banterβs Take
Bulls must protect the current lows and prevent the price from further decline. If they succeed in doing so entering next week, then the bears will likely weaken, giving bulls another opportunity to drive the price up.Β
Until that happens, bears have the opportunity to breach the support.
Stay safe my friends!
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