Key levels to watch in the crypto market
So, Elon Musk just tweeted out that he's personal crypto portfolio holds Bitcoin, Ethereum, and Dogecoin and, we've guessed it, you also want in on the action.
Here's what to expect short term for four of the major coins this week.
Bitcoin: Eyeing new highs?
The days prior to the 24th of October were really enthralling for BTC.
BTC to USD ended the week at $60,847.0 but not before reaching an all-time high of $66,958.0 just days before it.
In fact, BTC stood clear of its major supports and managed to rally to those numbers on Wednesday.
Despite revisiting red and falling to $59,755.0 on Saturday, BTC still managed to avoid its first major support level just under $56,000.0.
Going into this week:
Bitcoin has broken past $62,000 with relative ease and will most likely be met with the first major resistance level around the $65,300.0 area.
With Elon Musk once again vaunting BTC, it may be to no one's surprise that BTC finds support and rallies through to $65,000.0 levels. It remains to be seen if the coin's all-time high will hold as such or given its newfound hype, we're facing a scenario of an extended breakout and test the $70,000.0 resistance.
On the other hand, if we see a sell-off, support is expected at the $58,000.0 and $55,000.0 levels.
Market sentiment and social media
If you like to keep your ear to the ground, Twitter and Reddit often provide great insights into the world of crypto.
As such, the word on the street points towards Bitcoin going for months of new record highs and people have even been theorizing that BTC will be hitting six figures before Christmas, putting it a market cap of $100 trillion.
Ethereum: hyped and primed for a run
Not only did we witness a 6.11% run this past week, but Ethereum managed to do so after having another 12.66% rally the week prior.
Despite staying clear of its major support level around the $3,500.0 mark, Ethereum did fall to $3,676.65 before making its move towards its $4,374.95 intraweek high and, in the process, breaking its first and second major resistance levels at $4,085 and $4,325 respectively.
Ethereum might be due a run with Elon's newfound hype. So far, major its major support and resistance levels were left untested.
If we see a rally, and ETH starts heading towards its May all-time high, it'll most likely be met with resistance around the $4,400.0 mark and, if it manages to break that, it might even test the $5,000 resistance before we can see any signs of a pullback.
Worst case scenario, and if you're counting on a bearish week, ETH is seeing support at the $3,700 mark. If you're overly pessimistic, the next support level is currently sitting at $3,350.0.
During the previous week, despite falling through one of its major support levels ($191.0) and ending the week at $190.48, LTC saw a 3.67% increase.
During the past Sunday, LTC reversed its gains from Saturday, falling 2.99% from the previous 2.84% gain.
Given it's start of this week, Litecoin went straight through the $192 pivot, and it might soon be met with its first major resistance level at the $199.0 mark.
If there is a breakout scenario, it could very well test its $210 resistance.
Consequently, LTC is not expected to go below the $178 support.
Ripple mirrored Litecoin during the weekend, having also reversed its Saturday gains on Sunday. It went down 0.86% the past week.
If XRP picks up on the other coins' hype, it may test the $1.15 resistance level.
Apart from a sell-off this week, major change of sentiment, or a broader market shift towards other coins, XRP should avoid the $1.034 support level.
We all know how powerful a tweet can be and with inflation looming, there is still an ongoing debate if BTC will be able to outperform gold on an inflationary scenario.
This week might just be the beginning of another rally.