After two successive weeks of gains, the S&P 500 Index (SPX) started the week on a positive note, suggesting a risk-on sentiment which is a bullish sign. The volatility is likely to pick up as 11% of the S&P 500 companies are expected to report results this week. This risk-on sentiment could boost buying interest in select cryptocurrencies, such as the Grayscale Bitcoin Trust (GBTC). Grayscale’s legal victories have reduced the discount on the GBTC to its lowest level since 2021, indicating that the investors are factoring in the possibility that the trust will finally convert into a spot Bitcoin (BTC)ETF.
When the crypto price does not break below the support levels on bad news and rises above the overhead resistance on favorable news, it shows that the shorts are running low on confidence. This increases the likelihood of an up-move in the near term.
What are the important overhead resistance levels on Bitcoin and altcoins that need to be crossed to start an uptrend? Let’s analyze the charts to find out.
Crypto Price Today and Next Week
Crypto investors are closely watching the crypto price today and next week to see if it will have a bad or positive outcome. With the crypto legal battles being won, the bad for crypto sentiment is slowly fading away, and the crypto of the week may be bullish in May 2022.
S&P 500 Index price analysis
The S&P 500 Index (SPX) turned down from the 50-day simple moving average (4,401) on Oct. 12, but the bears were unable to push the crypto price today below the important level at 4,325.
The 20-day exponential moving average (4,341) is flattening out and the relative strength index (RSI) is just above the midpoint, indicating that the crypto next week could be positive.
Buyers will attempt to drive the crypto legal above the overhead resistance zone between the 50-day SMA and the downtrend line. If this zone is surmounted, the index will signal the end of the corrective phase.
Conversely, if the crypto of the week turns down and breaks below 4,325, it will suggest that the bad crypto could be bad for crypto in May 2022. The index may then retest the pivotal support at 4,216.
U.S. dollar index price analysis
The U.S. dollar index (DXY) corrected from 107.34 on Oct. 3 and dipped to the 20-day EMA ($106) on Oct. 10. In an uptrend, traders generally buy the dips to the 20-day EMA.
Here too, the bulls bought the dips to the 20-day EMA, which initiated a rebound. The bulls will attempt to push the price above the 107.34 to 108 resistance zone. If they succeed, the index could start a strong rally toward 111.
However, the bears are unlikely to give up easily. They will try to protect the overhead zone and pull the crypto price today below 105.50. If this support breaks, the index may drop to the 50-day SMA ($104.81). This is a crucial level for the bulls to protect if they want to keep the up-move intact. Below this level, the index could fall to 103.
Bitcoin price analysis
After trading between the moving averages for the past few days, Bitcoin made a decisive move on Oct. 16 when bulls kicked the crypto price above the 20-day EMA ($27,224).
The momentum picked up further and the BTC/USDT pair skyrocketed above the $28,143 resistance. However, the euphoria was short-lived as the bears aggressively sold at higher levels and yanked the crypto price back below $28,143.
The 20-day EMA has started to turn up and the RSI has jumped into positive territory, indicating that the bulls have a slight edge. If buyers achieve a close above $28,143, the pair may march toward $30,000 and then to $31,000.
On the downside, a break and close below the 50-day SMA ($26,715) will tilt the advantage in favor of the bears. The crypto of the week may first plummet to $26,000 and then to $24,800.
Ether price analysis
Ether (ETH) has been moving in a range between $1,531 and $1,746 for the past few days, a typical pattern for traders to buy near the support and sell at the resistance.
Buyers took advantage of the dip to $1,521 on Oct. 12, which triggered a relief rally. The bulls tried to push the price above the moving averages on Oct. 16, but the long wick on the candlestick indicates that the bears were selling aggressively.
If the crypto bad today price turns down from the current level, the bears will make another attempt to push the ETH/USDT pair below $1,521. If successful, it could collapse to $1,368.
On the other hand, the bulls will try again to keep the price above the moving averages. If they manage to do so, the crypto price today pair could jump to $1,746, but this level is also likely to face strong selling pressure from the bears.
BNB price analysis
BNB (BNB) rebounded from the strong support of $203 and moved above the downtrend line on Oct. 16. However, the long wick on the candlestick shows that the bears are still selling on rallies.
The 20-day EMA ($210) has flattened out and the RSI is above the midpoint, indicating that the bearish momentum is weakening.
The bulls will try to take advantage of this situation and push the price above the downtrend line. If they can sustain the higher levels, it will invalidate the bearish descending triangle pattern. The BNB/USDT pair may then climb to $235 and later to $250.
This bullish outlook will be negated if the price turns down and falls below the vital support at $203. The pair may then drop to $183.
XRP price analysis
XRP (XRP) has been trading within a wide range between $0.41 and $0.56 for the past few days. The bulls are attempting to initiate a rebound, but it is likely to face strong resistance at the moving averages.
If the price reverses from the moving averages, it will suggest that each minor rebound is being sold into. This could lead to a drop to $0.46. If this level also fails to hold, the XRP/USDT pair may decline to $0.41.
On the other hand, if the bulls can push the price above the moving averages, it will indicate solid buying at lower levels. The pair could then attempt to rally to $0.56. The bears are expected to defend this level aggressively.
Solana price analysis
Solana (SOL) surged above the near-term resistance of $22.50 on Oct. 16, indicating that the bulls are attempting to take control of the crypto price today.
The bulls pushed the price to the neckline of the inverse head and shoulders pattern but could not scale the level. This is an important resistance to keep an eye on because a close above it will complete the bullish setup. The SOL/USDT pair may then start an up-move to $27.12 and later to the pattern target of $32.81.
If bears want to prevent the upside, they will have to quickly drag the price back below the 50-day SMA ($20.56). The pair may then dip to $18.50, which could be bad for crypto of the week.
Cardano price analysis
The bulls are fiercely defending the strong support near $0.24 for Cardano (ADA), which led to a bounce off the level.
The moving averages are the immediate resistance on the upside. On Oct. 16, buyers attempted to break above this resistance, but the long wick on the candlestick signals selling pressure at higher levels. If bulls can keep the price from dropping too much, there is a chance of a rally towards $0.28. This level may act as a resistance again, but if it is breached, the ADA/USDT pair could reach $0.30.
The important level to watch on the downside is $0.24. If the price turns down from the moving averages, there is a greater chance of a fall below $0.24. A break below this crucial support could take the pair to $0.22 and then to $0.20.
Dogecoin price analysis
Dogecoin (DOGE) has recovered to the breakdown level of $0.06 on Oct. 14, suggesting that lower levels are attracting buyers. The 20-day EMA ($0.06) is flattening out and the RSI is near the midpoint, indicating that the selling pressure may be decreasing. If buyers can push and sustain the crypto price above the moving averages, it could signal the start of a new upswing to $0.07. This level could again act as a tough hurdle but if cleared, the DOGE/USDT pair could reach $0.08.
On the other hand, if the crypto price turns down from the current level, it could mean that the pair may remain in the $0.055 to $0.06 range for some more time.
Toncoin price analysis
Since October 12, Toncoin (TON) has been trading below the moving averages, but the bears have not been able to capitalize on this crypto bad today and take the price further down. This could be a positive sign.
The bulls have attempted to push the price back above the crypto price today, but the long wick on the candlestick shows that the bears have not been willing to relent. Sellers will try again to take the price below $1.89 and begin a deeper correction. The next support on the downside is at $1.80 and then $1.60.
For the bulls to signal a comeback, they will need to push and sustain the crypto next week above the moving averages. The TON/USDT pair could first rise to $2.20 and then to $2.31.
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