Crypto Week at a Glance: Where’s Bitcoin, Ethereum and altcoins headed now?

Synopsis

To rally further, Bitcoin needs to break and close above $67,000.

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Bitcoin
BTC currently trades around the $61,000 mark. The asset witnessed a slight correction after it hit its new all-time high of $66,999 last week when some profit booking was seen. BTC has a market capitalization of $1.1 trillion, and a dominance of 46 per cent.

Between ETF approval, ETF launch and now new all-time highs, the pace of news is frenetic, but all still largely positive. There was also quite positive news that hit the tape: FDIC Chair indicated that the agency is working to establish clear guidance on the intersection between crypto and the US banking world.

That only bolsters a broadly positive backdrop for the now $2.6 trillion crypto industry. The rally of BTC has been largely spot driven as BTC futures inflows have seen a slight dip and perp funding rates are unchanged.
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bitcoin priceBulls made it large as Bitcoin skyrocketed to the new all-time high of $66,999. The asset gave a breakout above the ‘Descending Triangle Pattern’ on October 1 and has surged almost by 55 per cent within a month.

However, post this move BTC faced stiff resistance around the $67,000 mark and witnessed some profit booking. The asset corrected almost by 14 per cent making the weekly low of $57,653. To rally further, BTC needs to break and close above $67,000.

Ethereum
Ethereum (ETH) has seen a significant rally over the past 2 weeks, currently trading around $4,350, after it broke through the stiff resistance it faced at $4,000. It also set a new all-time high of $4,401 last week.

ETH is up by approximately 25 per cent over the past month. ETH’s dominance too has improved, currently close to 19 per cent, as the second largest asset currently has a market capitalization of $520 billion.

On-chain metrics haven’t been showing any rally specific trends either. This means that the network is under-utilised, and the on-chain activity would have to catch up with price performance in order to sustain the market.

The reason for this is the continued avoidance of ETH but buying of SOL and other such non ETH L1 assets among retail aggregators.

eth priceETH, post giving a breakout above ‘Descending Triangle’, has witnessed a massive rally and last week the bulls pushed the price above the long held resistance of $4,370 and made the high of $4,456.

The asset has surged almost by 50% within a month. Currently, the asset is consolidating and trading in a range between $4,250 to $4,400.

ETH is trading in an uptrend and the rising moving averages and the relative strength index (RSI) in the positive territory indicate that buyers have the upper hand. However, to further rally, the asset needs to close above $4,456.

Other Altcoins
Our trading desk believes that Polygon (MATIC) could hit the $3 mark by the end of this year as it charts a pattern that’s starting to resemble a bull flag.

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 last two weeks, Polygon has surged by about 35 per cent, and volumes have witnessed significant growth too. Inflows into the asset have been on the rise, and institutional interests have peaked too.

Similarly, BAT has been gaining significant traction in the crypto community too. The Brave browser, which acts as the backbone for BAT, has seen a mammoth rise in this user base, among both retail users and publishers alike. The program has also incorporated new features, which solve some fundamental issues in the digital browsing space.

This has significantly contributed to the asset’s appreciation of late, coupled with the fact that it remains a cheap asset to acquire at current price levels. It does seem attractive as it currently trades at $1.25. If BAT continues to convincingly trade above $1, it could hit new all-time highs soon.

Crypto Cart: Quick Glance

Top gainers for the week
Decentraland (MANA): 353.60%
Dogelon Mars (ELON): 295.16%
The Sandbox (SAND): 155.82%
Shiba Inu (SHIB): 73.12%
Basic Attention Token (BAT): 68.99%

Top losers for the week
OKB (OKB): -21.23%
Stacks (STX) -18.39%
Revain (REV): -14.29%
XDC Network (XDC): -13.47%
DeCred (DCR): -11.87%

(Source: coinmarketcap.com, data as of 12.00hours, IST on October 31, 2021. Analysis includes the top 100 cryptocurrencies only)
(The author is Chief Revenue Officer for ZebPay. Views are his own)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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Updated: 10/31/2021 — 07:00