Crypto assets, including Bitcoin, posted moderate gains on Friday following comments from the US Fed chair that raised Treasury yields. However, a legal development saw a lawsuit filed against Digital Currency Group, its subsidiary Genesis Global Capital, and the crypto exchange Gemini for alleged fraud exceeding $1 billion. This legal action appeared to affect the crypto market narrative, emphasizing Bitcoin’s dominance. Ethereum’s relative decline against Bitcoin and underperformance of other layer 2 assets were noted, with the exception of the US dollar-pegged Tether. Despite these legal and market dynamics, several top crypto assets made significant gains, including Solana, XRP, Toncoin, Bitcoin Cash, and Litecoin. Despite facing numerous macroeconomic challenges, the Bitcoin price managed to stay above $28,000, largely thanks to a surge in spot Bitcoin ETF amendments in mid-October. This development significantly improved market sentiment. Bitcoin’s price movements remained relatively stable within liquid markets, experiencing reduced volatility. The market is looking for a potentially “very dovish” response from Powell due to the ripples caused by elevated U.S. bond yields, all while Bitcoin’s price climbs past the $28,600 mark.
Bitcoin’s price has been on the rise today, surging past $28,700 with a strong upward movement that has taken it to a level not seen in two months. This increase in Bitcoin’s price follows its ability to maintain the crucial $28,000 level. It is also accompanied by institutional investors making adjustments to several spot Bitcoin ETF applications and the optimism of retail investors regarding the upcoming Bitcoin halving narrative. On October 19, a significant milestone was reached as long-term Bitcoin holders accounted for 76% of all BTC ownership, a first in the history of the crypto. This trend is further fueled by Bitcoin leaving exchanges, making liquidations have a substantial impact on its price. In the past 24 hours, over $10.1 million worth of BTC shorts have been liquidated, with more than $8.5 million of shorts being liquidated within just 12 hours. The positive momentum in Bitcoin’s price is contributing to improved market sentiment. This is reflected in the Bitcoin Fear & Greed Index, which has shifted from a fearful to a neutral position, gaining seven points in just one week.
Ethereum, often regarded as the pioneer of Web3 protocols, holds the position of the world’s second-most popular crypto. While Ethereum’s prominence is widely recognized, it might currently be experiencing a temporary setback. However, there remains ample room for growth, considering that ETH is currently trading at a price 66% below its previous all-time high. It’s important to note that the earlier all-time high might have been reached at a time when Ethereum had less fundamental value to offer compared to its current capabilities. Throughout this year, Ethereum has repeatedly faced strong resistance in the $1,100 to $1,200 range. This has led to speculation that the only likely direction for Ethereum from this point is upward. Of course, crypto analysis is rarely straightforward, but Ethereum’s positive sentiment stems from the success of the Ethereum 2.0 upgrade in 2022, which merged various Ethereum protocols. Online discussions and sentiments about the Ethereum project are overwhelmingly positive.
On the macro front, The positive momentum started after U.S. Court of Appeals Circuit Judge Neomi Rao ruled in favour of Grayscale Investments in its case against the U.S. Securities and Exchange Commission on August 29. Following this favourable outcome, several major institutions moved forward with filing for their own ETFs. Then, on October 14, the SEC made another crucial decision by announcing it wouldn’t contest the ruling. This non-appeal stance might have influenced Grayscale to apply for a new Spot Bitcoin ETF on October 19. Scheduled to address the Economic Club of New York at 12 pm Eastern Time on Thursday, Jerome Powell confronts a challenging macroeconomic landscape, particularly with 10-year U.S. bond yields reaching their highest levels since 2007. This development has stirred memories of the 2008 Global Financial Crisis, intensifying the focus on the dovishness or hawkishness of Powell’s statements. As data has indicated inflation persisting beyond forecasts, there was a prior expectation that the Federal Reserve was contemplating a prolonged period of elevated interest rates.
Technical Outlook
Bitcoin:
BITCOIN after taking multiple supports at the crucial support level of $25,000 (Horizontal Trendline & 50% Fibonacci Retracement Level) has rallied up to $30,000. However, the bulls are yet to break the major hurdle of $32,500 on the chart. Once BTC breaks and closes above this resistance then we may expect it to further rally up to $36,000 to $40,000 whereas $25,000 will act as a strong support for the asset.
Ethereum:
ETH after facing stiff resistance at the recent high of $1,750 (Horizontal Trendline & 50% Fibonacci Retracement level) witnessed a sharp correction and the prices fell almost by 13% and dropped to $1,521. The bulls, however, defended the key support zone from $1,530 to $,1,500 (Horizontal Trendline & 78.6% Fibonacci retracement Level) and gave a relief rally up to $1,639. Breakouts above $1,750 or below $1,500 with good volumes will further decide the trend for the asset.
Binance Coin:
BNB continues to trade sideways in a range from $205 to $220. The asset is taking good support at $200 multiple times but is not able to break the crucial resistance of $220. Once it breaks, closes and sustains above $220 then we may expect the prices to further rally up to $250 levels.
Weekly Snapshot:
| USD ($) | 12 Oct 23 | 19 Oct 23 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $26,757 | $28,720 | 7.34% | $28,253 | $26,558 | $29,448 | $26,686 |
| ETH | $1,540 | $1,567 | 1.75% | $1,660 | $1,523 | $1,628 | $1,538 |
| BNB | $205.23 | $211.14 | 2.88% | $214.39 | $203.66 | $217.12 | $204.62 |
| crypto | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 33.63% |
| Ethereum (ETH) | -1.00% |
| Binance Coin (BNB) | 2.23% |
| Resistance 2 | $32,500 | $2,150 | $0.95 | $255 |
|---|---|---|---|---|
| Resistance 1 | $28,500 | $1,750 | $0.75 | $220 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $25,000 | $1,500 | $0.50 | $200 |
| Support 2 | $22,500 | $1,350 | $0.41 | $180 |
Market Updates:
- Blockchain company LBRY Inc. — the creator of the LBRY blockchain — has issued its final message to the crypto community, citing “several million dollars” of debts that have now made it impossible for the firm to continue.
- The United States Treasury Department plans to expand its sanctions against so-called crypto mixers, according to an Oct. 19th report by The Wall Street Journal.
- New York’s attorney general has filed a lawsuit against crypto firms Gemini, Genesis and Digital Currency Group for allegedly defrauding investors through the Gemini Earn investment program.
