Technical Analysis: BTC, ETH, ATOM, and more


09  October 2020 | ZebPay Trade Desk

Cryptocurrency markets spilled red ink with most coins ending down and failing to breach key resistance, generating reason to look out for support on further downside. The situation has turned negative and markets have breached key support and that should add to pressure in near term. Bears seem to have gained the upper hand, looking to claw in further damage. Let’s look at what we have in store for a trade set-up.

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Bitcoin (BTC) Technical Analysis and Chart:

At the time of writing, Bitcoin is trading around $10,608 reflecting a loss of 0.18% approximately over the period of 24-hours.

As we see in the chart above, Bitcoin Defended the level of $10,000 last month and has traded in a range bound manner above the $10,300 levels. As seen the range has narrowed over recent weeks.

After the mild sell off last week, selling this week seems to have eased a bit with formation of a symmetric triangle. BTC finds a strong support around $10,300 followed by $10,000 levels. On the upper side, BTC finds small resistance at $10,800. MACD histogram though is still positive but decreasing.

A break downwards from here will see the next support at $10,300 levels, with prices trading below 10 and 21 days EMAs it may very well be next stop 

BTC seems under pressure after last week. From a  technical standpoint we tilt towards the bearish side. The analysis will be negated if price convincingly breaks above the triangle 

Ethereum (ETH) Technical Analysis and Chart:

At the time of writing, Ethereum is trading around $336.1 reflecting a loss of 1.16% approximately over the period of 24-hours.

As we see in the chart above, Ethereum is trading well above support level of $315 after making a local high of $488.85 last month. Currently, trading below both 10 and 21 days EMAs, the support was successfully defended this month.

This month cause of concern recently has been the formation of successive lower highs, which continued this week leaving the descending triangle pattern formed last week intact. This should imply Ethereum will face resistance on breaching the descending side of the triangle from upside. With RSI being in neutral zone and trading levels below EMAs could mean ethereum moving back toward the support continuing last week’s selling, giving a technical standpoint of sell on rally. The analysis will be negated if price breaks convincingly above the EMAs.

Basic Attention Token (BAT) Technical Analysis and Chart:

At the time of writing, BAT is trading around $0.2089 reflecting a loss of about 1% approximately over the period of 24-hours.

BAT had a continuation of its bearish run last week, trading below 9,21 & 100 days EMA until last week and breaching the  support of 0.23. Next support comes at around $0.18. Bad run for September has continued into October for BAT and with support turning into resistance we see a sell into  rally setup. Formation of lower highs and lower lows in recent periods support our view as well.  The analysis will be negated if BAT breaches the level of 0.23 convincingly 

Maker (MKR) Technical Analysis and Chart: 

At the time of writing, the recently launched asset on our platform MKR is  trading around $503 reflecting a loss of about 0.65% approximately over the period of 24-hours.

MKR had a bearish run for the month of September and October falling from the levels of  $700 to trade around $450. MKR is currently supported at $500 levels.

After bullish divergence in MACD and MKR price, as we expected in last week’s technical report prices touched the resistance of $600 and reverted back to support. With MACD still positive this level remains a good entry point 

The analysis will be negated if support is breached convincingly.

COSMOS (ATOM) Technical Analysis and Chart: 

At the time of writing, ATOM is  trading around $4.68 reflecting a loss of about 2.08% approximately over the period of 24-hours.

After the last week’s sell off, ATOM tested support at $4.6 and successfully defended on few occasions, it still trades above the support with MACD line looking to turn positive and histogram already in positive territory.  With recently price finally closed above 200 day EMA making this level a good entry point, with next resistance $5.6 level. On the downside after $4.6 next key support is at around $4 levels. 

Hence, on the technical front the price level remains a good entry from the long side. Analysis will be negated if price breaks the support convincingly 

Weekly Trade Summary Sheet

Weekly Price Analysis

USD ($)30 Sept 207 Oct 20Previous WeekCurrent Week
CloseClose% ChangeHighLowHighLow

Weekly Volume Analysis

Cryptocurrency1w – % Vol. Change (Global)
BitCoin (BTC)-1.48%
Ethereum (ETH)-10.06%
Basic Attention Token (BAT)-11.21%
Cosmos (ATOM)1.35%
Ripple (XRP)25.40%
Maker (MKR)30.33%

Weekly Price Pointers

Resistance 2$11,120$400$0.2610$5.90$0.2600$640.00
Resistance 1$10,850$360$0.2410$5.50$0.2520$560.00
Support 1$10,345$334$0.2060$4.55$0.2270$450.00
Support 2$10,200$320$0.1910$4.10$0.2190$410.00

Market Updates

  1. DigitX, India’s first B2B cryptocurrency exchange, starts operations
  2. GM and Honda publish specs for decentralized electric car charging network
  3. Wrapped Bitcoin tops $1B after 900% increase in two months
  4. Yearn Finance Token Value Slides 67%, While Locked Value Loses Over $300M
  5. The US and China Lag Behind Ukraine and Venezuela in Cryptocurrency Adoption
  6. China’s Digital Currency Has Been Used in 3 Million Transactions Worth Over a Billion Yuan So Far

* Sources of charts: exchange: Coinbase-pro

Disclaimer : This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.

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