Major crypto tokens fell on Friday after a strong rally over the past few days. At the time of writing, Bitcoin is above the $20,000 mark, while Ethereum managed to hold at $1,500. The US economy grew 2.6% in the third quarter, a higher-than-expected 2% growth. Excluding Uniswap and dollar-pegged Tether, all other Major crypto tokens traded lower. Cardano and Shiba Inu fell 5 per cent followed by Ethereum and Polygon which lost around 3%. The market cap of cryptos broke below $1 trillion at $980.18 billion after falling more than 2% in the past 24 hours. However, the total trading volume collapsed by a whopping 13% to $89.23 billion.
Bitcoin price is back at a six-week high and BTC is targeting $21,000. After months of falling and spending the last few weeks in a small trading range, BTC/USD has rallied over 7% in 24-hour gains. It hit its lowest in the process levels and highs since mid-September. Bitcoin rewarded those who refused to sell and penalized the ones who shorted by around $1 billion. The trend reversal came quickly and surprised many. BTC saw record buying activity as BTC/USD returned to a six-week high. Despite warnings that a macro bottom may not have occurred, Bitcoin investors have wasted no time buying BTC above $20,000. Binance was of particular interest, noting a net position change of over 55,000 BTC on Oct. 26, the highest. Despite falling BTC prices, many BTC whales holding more than 10,000 BTC may be increasing their holdings even in bear market conditions. They continue to accumulate BTC after being distributed in April and September.
Ether has entered a bearish range that preceded a 35% price drop in the April-May 2022 session. ETH has posted better gains than bitcoin in the last 24 hours, although the latter finally crossed the key $20,000 level. On the daily chart, Ether is up about 14% to hit its weekly high of $1,554 on Oct 26th. Bitcoin saw a similar rally but its previous weekly earnings are only 6% compared to that. The ETH/BTC pair is up around 8% to hit 0.075 BTC on Oct. 26. The surge in major crypto assets has been in sync with the US stock market winning streak since October 24th. It also happened against the backdrop of a weaker US Dollar Index, which has typically traded inversely to the crypto market since March 2020.
On the monthly outlook, investor confidence in the crypto market could also rise on the back of their belief that the US Federal Reserve could make smaller rate hikes over the next two months. Public sentiment shows future interest rates could fall, and investors believe this has created the possibility of a broad crypto market rally. The S&P 500 provides a snapshot of the economy in general. Currently, Bitcoin and the S&P 500 share a high correlation coefficient. So if interest rates are falling and the economy is growing, Bitcoin could continue to rise if a similar price reversal occurs. The better the macro climate, the better Bitcoin’s price. The election of Rishi Sunak as the new Prime Minister of the United Kingdom seems to have boosted sentiment among crypto investors. Sunak is a proponent of crypto assets and once commissioned a real non-fungible token (NFT). As a result, many expect him to bring about major reforms in the crypto industry.
It is too early to tell whether or not the Oct. 26 rally is a sign of a trend reversal, one thing is clear: the factors affecting the price of Bitcoin and the crypto market are clearly being driven by the forced termination of Bitcoin futures. The positive movement in the macroeconomic markets and investors’ expectations is that central bank policy and crypto regulatory frameworks will improve.
Technical Outlook:
BITCOIN
BITCOIN was trading from $18,000 to $20,550 for a few weeks. The asset finally gave a breakout above the range and made the weekly high of $21,020. However, the bulls are struggling to gain momentum and the asset is facing higher-level rejections. Once BTC sustains above $20,550 it can go further up to $22,500 whereas $19,750 (50-Day Moving Average) and $17,500 will act as strong support for the asset.
ETH
ETH was consolidating and trading in a range from $1,200 to $1,400. The asset finally gave a breakout above the range and made the weekly high of $1,596. The downsloping Trendline and the Horizontal Trendline at $1,750 will act as strong resistance and to further rally it needs to break and close above these levels whereas $1,400 and $1,200 will act as strong support for ETH.
BNB
BNB after making the high of $298.1 witnessed a correction. The prices fell almost by 14% and made the weekly low of $256.8. Post this move, the asset made a ‘Hammer’ candle at the support and rallied up to $293.3. Technically, on a daily time frame, the asset is trading sideways in a range from $255 to $300 with low volumes. Breakouts on either side of the range with good volumes will further decide the trend for the asset.
Monthly Snapshot
| September | October | Current Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $19,573 | $20,285 | 3.64% | $22,674 | $18,290 | $20,938 | $18,320 |
| ETH | $1,336 | $1,514 | 13.38% | $1,785 | $1,229 | $1,585 | $1,209 |
| BNB | $284.19 | $286.84 | 0.93% | $0.94 | $0.69 | $293.07 | $264.52 |
| crypto | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | -13.42% |
| Ethereum (ETH) | -29.09% |
| Binance Coin (BNB) | -19.30% |
| Resistance 2 | $28,500 | $2,000 | $1.20 | $335 |
|---|---|---|---|---|
| Resistance 1 | $22,500 | $1,750 | $1.00 | $300 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $17,500 | $1,250 | $0.75 | $255 |
| Support 2 | $15,000 | $1,000 | $0.63 | $215 |
Market Updates
- Hong Kong plans to legalize retail trading of cryptos as it looks to become a crypto hub, according to a report. Crypto platforms will be required to apply for a license to offer retail trading.
- Tech giant Google will be launching a cloud-based node engine for Ethereum projects. The company said its Google Cloud Blockchain Node Engine will be responsible for monitoring node activity and restarting them during outages.
- Nearly 12% of all BEP-20 tokens, the standard token on the BNB chain, are tied to scams, according to recently released research from crypto risk monitoring firm Solidus Labs.
- DOGE price rallied to its best levels in two months as traders assessed Twitter’s potential to create a crypto wallet product.
- Ripple’s lab XRP token holdings have dropped below 50% of the total circulating supply for the first time in the company’s history.
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 cryptos viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.
