Crypto Market Analysis: BTC, ETH, and PAXG on October 2, 2023

Bitcoin has successfully broken through several resistance zones and is approaching the concentration level of sellers at $28,600. If buyers can surpass this level too, the local downward trend can be deemed as terminated.

The current support level is at $27,850. Below this, buyer zones are located at $27,300–$27,750 and $26,940–$27,000. As long as BTC trades above the last-mentioned buyer’s mark, the priority remains to continue the upward momentum. Support zones located below $26,900 were discussed in the previous analysis. 

Although the correlation between BTC and ETH remains high, Ethereum is experiencing a somewhat more sluggish ascent compared to Bitcoin. At present, this asset is navigating through the resistance zone between $1,733 and $1,746. Counter orders from sellers are positioned at the $1,770 mark and in the range between $1,790 and $1,815; securing above this would indicate the termination of the bearish trend.

A transient correction in ETH is conceivable, with buyers having positioned their orders at the $1,714 level and within the $1,690-$1,705 zone. A further support level is found at $1,672, determined by trade volume. Consequently, as long as ETH sustains above the $1,672 level, the continuation of upward momentum remains the priority. 

Lately, gold and BTC exhibit an inverse correlation, meaning as BTC rises, PAXG falls, and vice versa. Today, gold has reached a local low at the $1,860 mark. If the correction persists, buyers might become active at the $1,850 level and within the $1,800–$1,835 range. This last range appears especially attractive for initiating asset accumulation in the spot market.

The nearest resistance level stands at $1,915, with subsequent resistance zones at $1,955–$2,000 and a level at $2,052, which represents PAXG's annual high. Given their contrasting correlations, BTC and PAXG can serve as hedges against each other, thus both assets appear promising for portfolio accumulation.

This week is marked by the expected release of several significant economic reports, including the Manufacturing PMI (Monday, October 2), the number and rate of job openings (October 3), the levels of crude oil reserves and the Comprehensive Business Activity Index (Wednesday, October 4), the number of initial unemployment claims (Thursday, October 5), and finally, the total unemployment rate (Friday, October 6). Each of these announcements can potentially elevate the overall volatility in the cryptocurrency market, given its correlation with the US dollar.

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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.

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 movement of price 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.

This analysis was informed by the following educational materials and articles from Gagarin News: