The crypto market traded mixed amid risk aversion in the early hours Friday morning. Inflation concerns caused Bitcoin and Ethereum to cool off. The US Department of Commerce has confirmed that the largest economy in the world is currently in recession. This was based on the traditional definition of recession as back-to-back quarters of negative GDP. This report also impacted Wall Street sentiment. On Friday, key crypto tokens traded mixed. Ethereum and Bitcoin both fell slightly while XRP rose 9 percent. The Polkadot price is up more than 4%. Solana and Polygon are up 2%. The global crypto market cap was slightly higher at $942.84 billion, and it increased by less that one percent over the last 24 hours. The overall transaction volume decreased by 16% to $69.93 billion.
Bitcoin (BTC), which fell into a narrow trading range on the Wall Street Open on Sept. 29, as US officials declared that the US economy was in recession, saw its trading range shrink to just $19,600. BTC/USD experienced a calm overnight, reaching intraday highs of $19,600, the day before. After posting losses earlier this week, these 6% gains were a welcome respite. Market participants weren’t sure how Bitcoin would react to the September monthly close, as there was no clear direction. The material indicators were based on data from the order books that suggested $18,000 in fall weakness could support range market. Six consecutive days of decline in the S&P 500 saw it fall to a new yearly low on September 27. However, Bitcoin (BTC), maintained its performance and remained well above that level. This could be a good sign, as markets that show strength while going down tend to rebound best.
People are still discussing the future of the Ethereum network’s much-anticipated Proof-of-Stake transition. Because it is more sustainable and lowers carbon footprint, the importance of the new Ethereum network cannot be understated. Ethereum is a more reliable settlement layer and a more friendly platform for layer 2 solutions. This is an important step for layer 2 products. They could scale, offer computational compression, and provide other technological improvements. After Ethereum moves to proof of-stake, and meets environmental, socio- and governance (ESG), concerns, institutions will begin accumulating Ethereum. Investors see the possibility of a $3000 increase in Ether (ETH), prices by the end the year. This is especially true now that the network is more considerate of the environment and large banks use it. ETH trades up 3.8% to $1.336 right now. This means that it still has a lot of work to do in the next three-months.
The monthly outlook for the US equity markets was positive. It rebounded strongly on September 28th after the Bank of England announced a bond buying program. US Treasury yields dropped from multi-year highs. Despite this, Bitcoin was being bought heavily, but it failed to overcome its overall resistance. With a second-quarter GDP growth of -0.6%, the crypto pair was the most dismal. Despite protests by the White House, this meant that the US had met the standard criteria of a recession, with two consecutive quarters of negative economic growth. This is the result of the Bank of England’s sudden intervention in the UK bond markets, the return of quantitative easing (QE). There is one hope for crypto traders: October has been historically a strong month in Bitcoin. Except for 2014 and 2018, Bitcoin has closed positive in October every year since 2013.
Technical Outlook
Bitcoin:
Chart for Bitcoin (BTC).
After hitting a monthly high of $22,799, Bitcoin saw a correction. Prices dropped to $18,125. The asset traded sideways for the past two weeks, trading in a range of $18,500 to $22,500. Technically, BTC is consolidating at $17,750 (78.6% Fibonacci retracement level) and trying to get support. If the support is held, then the bulls may resume their up-move. To witness a rally, it must break above $22,500 resistance. A break below $17600 (previous bottom), will result in further decline.
ETH:
Chart for Ethereum (ETH).
ETH has been consolidating, trading below its 20 day moving average, in a range of $1,250 to $1.400, over the past two week. Technically, the asset is looking for support at the upward trendline and horizontal trendline at $1275. We can expect the price to rise to $1750 and $2,000 levels, respectively, if it breaks below $1,500. A further fall below $1,250 would result in further decline.
MATIC:
Chart Polygon (MATIC).
Matic saw a huge rally from $0.31 to $0.05 and faced resistance around $0.95 and $1. The market corrected almost by 35% to $0.6901. Matic consolidates in a range of $0.7 to $0.8 with low volumes. The trend will be further determined by breakouts on either side of this range, if there are good volumes.
Monthly Snapshot
AugustSeptemberPrevious MonthCurrent MonthCloseClose% ChangeHighLowHighLowBTC$20,050$19,573-2.38%$25,136$19,601$22,674$18,290ETH$1,154$1,33615.77%$2,023$1,428$1,785$1,229MATIC$0.83$0.76-8.21%$1.05$0.76$0.94$0.69crypto1m – % Vol. Change (Global)BitCoin (BTC)28.27%Ethereum (ETH)-5.29%Polygon (MATIC)-13.48%Resistance 2$22,500$1,750$1.05$0.60Resistance 1$20,500$1,450$0.835$0.45USDBTCETHMaticBATSupport 1$17,500$1,250$0.70$0.33Support 2$15,000$1,000$0.63$0.25
Market Updates
After conducting searches at the premises of OctaFX, an online forex trading app, and related entities, the Enforcement Directorate (ED), has placed Rs 21.14 million of OctaFX’s accounts in different bank accounts. This was due to allegations that the private company’s activities were in violation of Foreign Exchange Management Act.
Disclaimer: This report should not be regarded as investment advice. It does not consider the financial situation or investment goals of investors. When deciding whether an investment is right for them, all investors should take into account these factors and consult with a professional advisor. This report was prepared by the Company using information that it has access to, as well as information from public sources that have not been independently verified. The Company makes no representations or warranties, either express or implied, regarding the accuracy, reliability, correctness or completeness of the information, opinions or conclusions contained herein. This report is preliminary. The Company does not assume any obligation to revise or update the reports in response to new events or circumstances after the date of the report was made. Trading & Investments in cryptos viz. Bitcoin Cash, Ethereum, and other cryptos are highly speculative investments that are subject to market risk. The Author’s analysis should be used only as information and should not be considered investment advice.
30th-September-2022 ZebPay.
