Weekly Analysis of BTC, ETH, and the Stock Market (07.10.2024)
An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.
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Bitcoin (BTC)
Since our last analysis, Bitcoin tested the $66,481 level before dropping to the support zone of $60,000–$61,300. Despite the volatility, buyers successfully defended this range, which is promising for the continuation of the current uptrend.
For BTC to continue its upward movement, it needs to break through the seller level at $64,150 and retest the resistance zone between $65,400 and $66,500. A successful breakout could open the door to reaching new all-time highs.
However, a drop below $57,800 and consolidation beneath this level would invalidate the bullish scenario, signaling a potential return to a prolonged consolidation phase.
BTC/USDT H4 Chart
Ethereum (ETH)
Ethereum remains in a range between the support zone of $2,150–$2,300 and the resistance zone of $2,700–$2,850.
To resume its upward trend, ETH needs to break through the $2,517 resistance level and attempt to clear the upper resistance zone. This is a plausible scenario given the general optimism in the market.
If the price falls below the $2,150–$2,300 support range, it would signal a return to a bearish trend for ETH.
ETH/USDT H4 Chart
S&P 500 (SPX)
The S&P 500 index continues to perform exceptionally well, recently reaching a new all-time high at 5,767 points. There are no current indications that this trend is slowing.
However, upcoming events, including the U.S. presidential election, could lead to increased volatility in the index over the next few weeks.
Despite this, the S&P 500 offers a strong buying opportunity during any corrections, with the $5,200–$5,400 range being a key area to watch for potential entries.
SPX W1 Chart
Tether Gold (XAUT)
Gold remains at its highs with no signs of a significant correction. Despite hitting an all-time high on September 26, the price of XAUT has held steady, indicating strong buyer support.
For those looking to enter long positions, key buying zones to consider are between $2,585–$2,620 and the support level at $2,499. Additional levels for potential long trades were highlighted in our XAUT analysis on September 23.
XAUT/USDT D1 Chart
BTC Dominance, Altcoin Season Index, and Fear and Greed Index
Bitcoin's dominance index remains high at 58.1%, signaling that altcoins, even amid overall market positivity, are still less attractive to investors compared to Bitcoin.
BTC Dominance Index. Source: tradingview.com
The Altcoin Season Index reflects a similar trend, currently standing at 39 points. However, this figure has been steadily rising over the past month, offering hope for a potential return to an upward trend in altcoins.
Altcoin Season Index. Source: blockchaincenter.net
Meanwhile, the Fear and Greed Index has moved out of the “Fear” zone and now stands at a neutral 50, indicating that the market is awaiting new triggers and is poised to react to any potential developments.
Fear and Greed Index. Source: alternative.me
Economic News
This week brings several important macroeconomic events to watch:
- U.S. crude oil inventories and the release of the FOMC meeting minutes (Wednesday, October 9).
- U.S. Consumer Price Index (CPI) and initial jobless claims (Thursday, October 10).
- U.S. Producer Price Index (PPI) (Friday, October 11).
Particular attention should be given to Thursday’s CPI report, as it indicates inflation levels and typically has a significant impact on the prices and volatility of both traditional assets and cryptocurrencies.
Check out GNcrypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
- TOP 5 Useful Chart Analysis Tools on TradingView
- How Are Trading Volumes Useful in Cryptocurrency Analysis?
- Candlestick Patterns: Types and How They Work in Trading
- The Most Popular Chart Patterns for Crypto Trading
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