Bitcoin is currently trading directly above the white support line around $60.3k. I think today Bitcoin is likely to trade sideways, but once the new daily candle opens at 5 PM PST I think Bitcoin could continue to drop further. This is looking like a dead cat bounce, and I think the $55k price target is the realistic scenario. I will provide more updates as the price action develops.
Ethereum Likely to Retest $2.2k – $2.3k
Ethereum is trading near two key support levels that intersect around $2,250 and $2,350. ETH already formed a bullish rebound off this support zone, but is forming a U-turn and sharp decline back into the support zone again. I think we can see some more downside over the next few days.
Rejection for the Altcoin Market for Now
The Altcoin market formed a failed bullish breakout above resistance, and has dropped back down within the trading range. There is support around $592 billion market cap with wicks down to $586 billion market cap. I think the next few days will be very important, especially the next daily candle that opens later today. Bulls want to hold the current price level and make another attempt for a bullish breakout. I think bears are likely to send the price down lower though, I feel that Bitcoin could reach $55k and Altcoins will bottom out there.
While most of the crypto market has experienced downside, SUI and TAO have emerged as the dominant performers that remained green. I think there is some downside coming for SUI, but it is important to track the top performing cryptos.
SUI Short Trade Setup
SUI has hit resistance near previous all time highs, and is forming a rejection around $1.90. I have shorted SUI, I think there will be a pullback especially since Bitcoin faces the risk of dropping down to $55k.
BTC Showing Concerning Signs for More Downside
While September has been very bullish, October is starting off bearish and I think BTC faces the risk of more downside. The Iran-Israel news and port strike are two new developments that are contributing to bearish sentiment in the market. I think BTC is at risk of trending down, which implies there could be more downside for ALTS. I have $55k as a key target for BTC, and the yellow trendline is a key support level around $50k. I think the yellow trendline is a possibility if there is a shakeout from bad news. If BTC drops here this could be an opportunity to swing trade ALTS by selling and buying back lower or shorting them. I am shorting SUI because I like the trade setup.
Bitcoin has lost support at the yellow channel around $62.2k, and this support level is now acting as resistance. The current price action looks like a dead cat bounce to me. I think there is risk of losing support within the white zone over the next few days.
Bitcoin is holding above $60.3k support for now. The daily candle closes in about 4 hours, it will be important to see if this support level holds by the time of the daily candle close.
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