Bitcoin, Ethereum And Luna Are Bullish

BITCOIN ANALYSIS: OCTOBER 2021

Market Structure:

Bitcoin is the largest cryptocurrency in the world, developed to fight against centralization and fiat currencies. Here’s the market structure of Bitcoin.

Bitcoin is trading at $61,770. The market structure of Bitcoin is extremely bullish as the coin has managed to sustain above the $60,000 mark. Moreover, the coin is consolidating in a flag or a falling wedge pattern which usually ends in a bullish breakout. The coin is currently at the upper trendline of the flag which is serving as a tight resistance. Bitcoin is likely to retest its underlying support near $58,000 before giving a breakout on the upside. A strong demand zone ranges from $57,750 to $58,550.

On the hourly chart, the coin failed to close above the trendline as multiple wicks were formed. Moreover, the coin faced an immediate rejection as Bitcoin swiftly drifted below $62,000 in early trade. Although the bearish volumes are below average, the sellers have a slight edge over the buyers which may result in a final retest of the underlying demand zone near $58,000.

Bitcoin analysis
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating price indecision for the coin in the short-term. The hourly RSI is flat at the neutral region due to the consolidation phase. It stands at 50.14 and has the potential to go lower.

The MACD is below the signal line due to the slight dominance of the sellers.

Bitcoin analysis
Source: tradingview

Conclusion:

On the breakout and close above $62,000, $62,615, and $63,000 are the targets on the upside.

On the breakdown and close below $61,600, $60,700, and $60,000 are the targets on the downside.

ETHEREUM ANALYSIS: OCTOBER 2021

Market Structure:

Ethereum is the second largest cryptocurrency in the world after Bitcoin, designed to build a booming digital economy. Here’s the market structure of Ethereum.

Ethereum is trading at $4349. The market structure of Ethereum is extremely bullish as the coin rallied over 45% in the month of October to hit record highs. Ethereum touched $4460 for the first time before retracing mildly. The coin’s breakout was imminent as it sustained above $4250. The coin must keep sustaining above that level to witness a move towards $4750 and subsequently $5000. Ethereum is currently giving a low-volume retest of the origin before resuming its uptrend. The extent of the retracement must be restricted to the opening of the previous candle to sustain the breakout.

On the hourly chart, Ethereum violated the lows of the mother candle, thus indicating that the coin may extend its retracement following a stellar rally.

Bitcoin analysis Ethereum
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating mild price weakness for the coin in the short-term. The hourly RSI is slightly below the neutral region due to the invalidation of the lows. It stands at 49 and has the potential to go lower.

The MACD is below the signal line due to the retracement from the record highs.

Bitcoin analysis Ethereum
Source: tradingview

Conclusion:

On the breakout and close above $4365, $4420, and $4450 are the targets on the upside.

On the breakdown and close below $4330, $4295, and $4275 are the targets on the downside.

LUNA ANALYSIS: OCTOBER 2021

Market Structure:

Luna is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payment systems. Here’s the market structure of Luna.

Luna is trading at $44.19. The market structure of Luna is extremely bullish as the coin is making higher-highs and higher-lows. Luna is rising along a rising lower trendline and in that process, the coin invalidated the supply zone that ranged from $40 to $41.24. At the current trajectory, Luna will take out its previous swing-high of $47.70. The immediate supply zone exists between $46.86 and $47.70 while the previous supply zone will now act as a demand zone.

On the hourly chart, the coin has rebounded sharply from the underlying demand zone. The rebound was led by an accumulation phase and proceeded to make higher-highs and higher-lows. The previous highs can be tested shortly.

Luna analysis
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating mild price weakness for the coin in the short-term. The hourly RSI is slightly below the neutral region due to the formation of higher-low. It stands at 49 and has the potential to go lower.

The MACD is below the signal line due to the retracement from the swing highs.

Luna analysis
Source: tradingview

Conclusion:

On the breakout and close above $44.64, $46, $46.86 are the targets on the upside.

On the breakdown and close below $43.84, $42.64, $42 are the targets on the downside.

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