Near-Doji Day for Bitcoin, Modest Correction in Ethereum

Bitcoin Takes a Day Off in Volatility

Starting at 11,436, BTC/USD advanced slightly to $11,500. Then the pair was trading mostly sideways until 13:00 UTC, when a moderate spike to the day’s high at $11,568 followed. However, the gains were very short-lived and retraced back down to $11,420 in the next hour. Later in the day, the pair slipped to $11,325 but bounced off the day’s lows to $11,429 at the close of the session, some $21 below the open.

The pair has been capped under the $11,625 weekly resistance level for three days now, which was quite predictable. Still, the pair’s uptrend seems on a stable course because the 50-day SMA has been breached for the first time since the 2nd September. Also, the 20-day SMA has now gone above the 50-day one for the first time since the 8th September, which is also a bullish indication. Therefore, further upside progress remains a highly probable option. We are practically bound to see Bitcoin reach $11,862 before the end of October.

Ethereum Dips Slightly, Staying on Top of Daily Support

Ethereum showed quite as little volatility as Bitcoin did on 14th October, losing 0.82% during the day. Graphically, the session almost repeats Bitcoin’s pattern. The pair opened at $383, slid lower to $378 between 10:00 and 11:00 UTC to bounce to $381.2. Then two hours of relatively sharp falling followed from 14:00 until 16:00, taking the pair below the $378 support level. Ether closed Wednesday’s session at $377.8 by the CEX.IO quote.

Ether remains above the daily support level at $378 and below the 61.7% Fibonacci level at $387.1 Presently, we can say that the $378 daily level is support for Ether, but its progress higher remains restricted by the 61.8% Fibonacci level. Ethereum’s price action remains largely dependent on that of Bitcoin. The 61.8 Fibonacci level reached this week was previously reached by the pair on the 18th September. Also, the latest low on the daily timeframe has been above the previous one; therefore, we can assume that the downtrend has come to an end. But to speak confidently about an uptrend reversal in ETH/USD, we will need a confirmation of a breakthrough above $389.1.

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Author: Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.