Weekly Crypto Market Report: Oct 18-Oct 24, 2021 - Bitcoin, Ethereum, Polkadot and Shiba Inu
Market Fundamentals Analysis
By all metrics, $BITO's debut was a smashing success. The BTC-linked ETF saw nearly $1bn in volume and garnered $570mn of assets on its first day of trading, making it the 2nd largest ETF debut of all time. Last week, the ETF (ticker BITO) ended Wednesday with $1.1 billion under management after trading volume topped $1.2 billion, according to a recent press release. This led to BTC achieving its new ATH of C$82,759. After bursting through the C$70k barrier, Bitcoin was briefly trading close to the C$82,500 mark. The rest of the market followed suit during this time, led by Layer 1s with Ethereum, Solana and Polkadot all up by close to 5% over the week. Since then, however, BTC has corrected by approximately 10%, and currently trades at C$77,500 levels, but continues to witness good momentum and volumes. Last week’s rally saw a few tokens miss the bid as the majority of the market blinked green and the total cryptocurrency market cap jumped to $2.75T, and currently stands at $2.55T. BTC is holding strong, but pressure from the bears is high, and some consolidation at these levels is on the horizon. The asset now faces a stiff resistance at C$83,000, which if it crosses, another rally may set in. BTC dominance currently stands at 47%.
Ethereum briefly ticked its own ATH of C$5,434 last week. DOT screamed almost 15% higher to C$57.05 in a move reminiscent of price action in early October. Ethereum (ETH) has also seen a significant rally, currently trading around C$5,122 after it broke through the stiff resistance it faced at C$5,000. It came very close to setting a new all-time high but missed out on the same. ETH is up by approximately 6% over a 24hr period, and ETH dominance too has improved, currently close to 19%, as the second-largest asset currently has a market capitalization of $490 billion. ETH saw a sharp up-move on Oct. 21, which pushed the price to C$5,420, just above the previous all-time high at C$5,420. However, charts suggest that traders may have sold aggressively near the all-time high. The bears are attempting to sustain the price below the breakout level at C$4,900. If the price bounces off the current level, the bulls will make one more attempt to thrust ETH to a new all-time high.
Ripple (XRP) returned from the downtrend line on Oct. 21, indicating that bears are defending this level aggressively. On the downside, the bulls are attempting to sustain the price above the moving averages. If XRP manages to bounce off its current level, bulls might take charge, and push the XRP/USDT pair above the downtrend line. If this does happen, the XRP could witness a rally and close in on C$1.75. A break and close above this resistance could push the price to C$2. With flat moving averages and RSI near the midpoint, XRP might be pretty range-bound for the next few days. Unlike XRP, DOT seems to be a favourite among buyers right now. Polkadot (DOT) broke above the immediate resistance at C$53.75 on Oct. 20, after which the asset did give a breakout. The bears did put up a fight but failed to stop the buyer from accumulating the asset in the midst of the price surge. RSI is nearing the overbought zone, and coupled with the upsloping 20-day EMA of C$50, suggests that bulls are currently in charge. If buyers sustain the price above C$55, then DOT could retest the all-time high of C$60. This level also acts as the next stiff psychological resistance for the asset.
In a nutshell, the past week has been a good one for the market, and largely in the green. Between ETF approval, ETF launch and now new ATHs, the pace of news is frenetic, but all positive. The market feels firm based on client sentiment and derivative market positioning. This was absolutely a BTC-led rally. When the dust does settle, expect to see renewed interest in ETH and other alts and for dispersion to increase. Altcoins too have seen an impressive increase over the past week, most up between 4-9%. This is typical of altcoins, as they tend to follow BTC’s rally, usually with a slight lag, but this time, the rally that has taken place has been pretty instant, signaling a positive sentiment in the marketplace.
- Walmart plans to eventually install 8,000 Bitcoin ATMs in the U.S. and has installed 200 in a pilot program.
- SHIB quickly crashed 20% as Tesla CEO and dog-token proselytizer Elon Musk announced he owns none of the canine-themed coins.
- Pimco, an asset manager with $2.2 trillion under management, is looking to start trading cryptocurrencies.
- The Nigerian President, Muhammadu Buhari, is expected to formally launch the country’s central bank digital currency (CBDC) on October 25, 2021.
Bitcoin Technical Analysis
Bulls are making it large as BITCOIN skyrocketed to the new all-time high of C$82,759. BTC is trading in a steep uptrend and has surged almost by 60% within a month. The asset faced resistance around the C$83k mark and witnessed some profit bookings at these levels as the price corrected almost by 11% from the peak and made the weekly low of C$73,525. BTC is taking support at the crucial level of C$72,500 (20 Day Moving Average), If the price holds the support zone then the bulls may resume the up move. Technically, C$83,000 will act as a strong resistance and to further rally BTC needs to break and close above the resistance level whereas a break below C$72,500 will lead the prices to further slide to the next support zone which is at C$67,500 to C$66,500.
The rising moving averages and the relative strength index (RSI) in the positive territory indicate that buyers have the upper hand.
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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.