According to CryptoQuant data, the total amount of Bitcoin (BTC) in foreign exchange reserves decreased from 2.8 million BTC in October 2019 to 2.4 million. Analysts believe that this steady decline in inventories means that retailers and whales may be hoarding bitcoin as they expect prices to rise in the future.

While Bitcoin is still much shorter than its lifetime, it will be the second best currency of all seasons if it manages to close the third quarter of 2020 above $ 10,590. Skew data shows this will be lower than the 2017 Q4 closing price of $ 13,660.

All this indicates that the cryptocurrency markets are moving in the hands of stronger investors who are not alarmed by daily price fluctuations.

Institutional investors are said to have large pockets and prefer long-term positions. Bybit data shows that Grayscale Investments currently has 449,900 bitcoins, which is more than 2% of the maximum possible supply of bitcoin.

If institutional investors increase the distribution of cryptocurrencies, demand may eventually exceed supply, and this could lead to an increase in the bitcoin price.

Let’s explore the charts to analyze the path of least resistance for the 10 best cryptocurrencies.

Bitcoin / USD
Bitcoin has been hovering around a 20-day exponential moving average ($ 10,732) in recent days. Although the bulls on September 29 tried to walk away, they were unable to hold on to higher levels.

The bears failed to capitalize on the weakness and push the price below the $ 10,500 support level. This shows bulls and bears hesitation about the next directional movement.

A steady 20-day EMA and RSI near its midpoint indicate an equilibrium between supply and demand. It is difficult to predict the direction of the next breakout from this area.

However, a move towards the RSI can sometimes provide some clues. If the RSI rises above the symmetrical triangle and the 55 level, it increases the possibility that the bulls will attempt to breach the $ 11,178 level.

If successful, the BTC / USD pair could rise to $ 12,000 and then $ 12,460. On the contrary, if the bears were to fall below $ 10,500 and above, they would likely go down to $ 9,835.

Bears are trying to stem the rally at the 20 day moving average ($ 361). If the price drops below $ 337, ETH could drop to $ 308,392.

When the price does not rise above the 20 day moving average during the downturn, this indicates that the sentiment is negative and the bears are selling on the charge.

Both moving averages have a slight slope, and the RSI failure to rise above the 50 level indicates that the bears have an advantage. A break below the critical support level of $ 308,392 could take a drop to $ 240.

This negative outlook becomes invalid if the ETH / USD pair appears and breaks through the 20 day moving average. Such a move could lead to a $ 395 meeting.

XRP / US Dollar
The intraday low on September 24 reached $ 0.219712 to the 20-day moving average ($ 0.243). The failure of the bulls to push XRP towards the 20-day EMA indicates that bears could break this resistance.

Both moving averages have a slight slope and the RSI is just below the 50 level, indicating a slight advantage for the bears.

If the bears manage to drop the XRP / USD pair below the support zone of $ 0.2295 – $ 0.219712, the downtrend can resume with the next stop at $ 0.19.

Contrary to this assumption, if the pair emerges and breaks through the 20 day moving average, it would be the first indication that selling pressure has eased. A break of $ 0.26 would indicate a possible change in direction.

The inability of the bulls to keep Bitcoin Cash (BCH) above the 20-day moving average ($ 227) over the past four days indicates a lack of demand at higher levels.

If the bears fell below $ 223, they would go down to $ 210 and then to $ 200. A break below the critical support level of $ 200 would be quite negative as it could signal the start of a potential downtrend.

This negative outlook will be rebutted if the BCH / USD breaks down the downtrend and tops the resistance to 242. Above this level, the move could reach $ 280.

On September 29th, Binance (BNB) retreat reached 61.8% Fibonacci retracement level at $ 29.0886, and is facing resistance.

Source: CoinTelegraph