Weekly Crypto Market Report: Oct 11-Oct 17, 2021 - Bitcoin, Ethereum, Polkadot, & Polygon

Market Fundamentals Analysis

Bitcoin has witnessed a significant rally this week as it crossed the C$75,000 mark and regained the $1 trillion market capitalization feat. Volumes have shown good traction, and momentum is strong too. BTC hit a high of C$77,800. BTC dominance is up to 46% now, and this rally has sparked enthusiasm and confidence among market participants, with longer-term BTC price projections being largely bullish in nature. Suspicions are rising over U.S. regulators’ acceptance of physical Bitcoin ETF products later this year, amid reports that investors are largely for this development. This is the primary reason why BTC has seen such a significant rally, up almost 20% week on week. After hitting the weekly high, the asset has seen a minor consolidation, but no major profit booking was seen, which reinstills the strong fundamental outlook that the asset holds. Overall, analysts have projected a strong bullish outlook for the asset, for the rest of the year.

Ethereum has been pretty range bound, fluctuating in the range of C$4,850-C$4,650, as the tussle between the bears and bulls continues. Keep Network, a protocol designed to offer privacy-focused infrastructure on public blockchains has now integrated itself into the ETH blockchain. This development that came earlier this week, has not contributed to a price surge, but it has pumped up volumes, which is a positive sign for the asset. Having said that, on a week-on-week basis, ETH is up by approximately 9%, and ETH dominance too has improved, currently close to 20%, as the second-largest asset currently has a market capitalization of $450 billion. The top altcoin seems to be teasing the market with hopes of a move above C$4,900. However, the same has not been breached yet. Much of the appreciation that ETH has seen from the July lows can be credited to Defi projects accumulating more total value locked (TVL) and to the disinflationary mechanism introduced in EIP-1559.

Altcoin projects focused on privacy caught a bid most of this week, as bullish today as the sentiments building over a possible Bitcoin ETF approval spreads across the market. Typically, altcoins follow the trend BTC sets, and this time nothing different seems to be happening. Polkadot (DOT), has seen an impressive rally this week. On October 14, DOT saw an appreciation upwards of 30%, as it crossed the C$50 level. From a week-on-week standpoint, the asset has surged by 17% and has held convincingly, closing in the green across multiple trading sessions. Volumes too have seen a good push, which is fueling the rally, and which is why DOT’s market capitalization has surged to $42 billion, making it the 8th largest asset by market capitalization. The Real Vision Exchange Crypto Survey conducted, designed to track sentiment among investors saw DOT come on top, suggesting that crypto traders fundamentally believe in the asset, and are very bullish on it. DOT currently trades at C$51.68 and faces stiff psychological resistance at C$55-60. If the asset does cross this threshold, another rally can be anticipated.

Analysts believe that Polygon (MATIC) could hit the C$3 mark by the end of this year as it charts a pattern that’s starting to resemble a bull flag. Put simply, bull flags are bullish continuation patterns that show up when the price consolidates following a strong move higher. A surge in the Polygon market appeared after Upbit, one of the largest South Korean crypto exchanges by volume, added MATIC pairs to its trading platform. Over the past week, Polygon has surged by approximately 15%, and volumes have witnessed significant growth too. Inflows into the asset have been on the rise, and institutional interests have peaked too. The asset seems to be maturing in the space, and over the past few months has established itself as a key player in the altcoin space. Polygon’s native token MATIC currently trades at C$1.875 and has a market capitalization of $10 billion, ranked 21st.

Weekly Snapshot

Market Updates

• Brazilians have brought over $4 billion of cryptocurrencies to the country, according to numbers from the Central Bank of Brazil.
• Grayscale looks to be seeking to restructure its Bitcoin Trust into a physically-backed fund after the SEC approved a Bitcoin futures ETF.
• Bitcoin of America recognized the growing popularity of the cryptocurrency Ethereum and decided it was time to include it in their BTMs.
• MDS Mexico will use blockchain technology to verify the authenticity of its rapid coronavirus test results.

Bitcoin Technical Analysis

BITCOIN is witnessing a massive rally as the prices have surged almost by 50% from C$51,799 to C$77,800 in just twenty days. Bulls are making it large as the prices have breached the psychological level of C$70k convincingly. Technically, on a daily time frame, BTC is consolidating and is trying to make a ‘Flag ‘ pattern (continuous bullish pattern). The asset can face resistance at the crucial level of C$82,000 (all-time high). If the bulls manage to push the price above the resistance with good volumes then we can expect the asset to further rally. On the contrary, if the bears manage to pull the price below C$72,500, then we may see a minor correction. RSI (70) is currently in support of the bulls, however, one should remain cautious once it enters the overbought zone (above 80).

For the latest cryptocurrency prices, check out NDAX's Markets page.

Disclaimer:

Information provided in the weekly market report is for information purposes only and should not be interpreted as investment, legal, or tax advice. Prior to investing, it is very important to evaluate your investment objectives and your risk tolerance carefully. This technical report is not meant to provide guarantees of future performance, and users should not rely on it, as the actual performance and financial results may differ significantly.