Monthly Review: $BTC, $ETH and $MATIC

The last week of October leaves us with an encouraging bullish close in the crypto market that is clearly reflected in $BTC, which has left a rebound move from support to test and even pierce the first short-term resistance zone at $20.5k, but for the moment without a large increase in volume as we can see in the chart.

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This movement begins to generate some higher highs than the previous ones, which may lead to the creation of a new uptrend in the short term, but for this it is necessary to start seeing a sequence of rising highs and lows, which could lead the price to test the next resistance at $23k or even $25k if the movement is prolonged in time. 

But as long as this does not happen, we will have to be attentive to its development, since the underlying bearish trend is still in force.

On the other hand the dominance of BTC leaves a slight rejection movement caused by the rise of other large cap tokens such as $ETH which is approaching the monthly close with a result of +16%, higher than the +6% accumulated by $BTC.

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Despite this upward movement, no higher high has been created on the daily chart than the September high at $1800, which would be the resistance to take into account for a possible change of trend.

Regarding the rest of the market, some tokens that we have already discussed in other articles stand out, such as the token of the Huobi Exchange ($HT) that accumulates +97% monthly or $SUSHI with +55%, but this week I want to review the evolution of $MATIC, which has a monthly accumulation of +20% and reflects a more optimistic technical structure than $BTC or $ETH.

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As we can see in the chart, the upward movement of $MATIC since the June lows left a resistance zone at $1.05, which subsequently generated a triangle with descending highs and support at $0.70.

During this month we have seen how it began to generate a short-term uptrend that broke that descending triangle as we can see in the 4h chart.

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This leaves us with a scenario with the price testing the $0.95 resistance and with that sequence of rising highs and falling lows. If this sequence continues, we will have to pay special attention to the situation of the RSI indicator in that zone of highs between $0.95 and $1.05, because if it manages to break the zone of 70 with increasing volume it can generate a breakout bullish movement. But for the moment this resistance zone remains in force being a conflict zone in which it is not advisable to take trading decisions.

If there is a rejection from this resistance, the support zone is at $0.70-$0.72, although the tertiary trend of the last month has the last rising low at $0.80, so starting to see lower lows could cause the end of the uptrend.

The most optimistic scenario is to preserve this uptrend and begin to detect increased buying volume that would result in a breakout movement that could confirm the cup with handle figure that we saw in the 1d chart.

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This figure that would be confirmed with the break of the resistance at $1.05 would target $1.40, but it is not even confirmed yet, so we will have to follow the price closely to act according to its evolution.

Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows our analysis and investment tools, and how they help us in our operations when making decisions.