Early Friday, the US jobs data release was expected to bring back the Crypto market. Crypto is currently facing macro fears. After surpassing $20,000, Bitcoin is now back at psychologically critical levels. Ethereum had also reached $1350, while the other altcoins dropped. All other crypto tokens that were traded on Friday, with the exception of Tron, Tether and Uniswap which are tied to the US Dollar, are at the bottom. BNB dropped 4%, followed by a 3% drop in Shiba Inu. Dogecoin and Solana lost 2% each. Global crypto market cap fell more than 1% over the past 24 hours to $958.92 billion. The total volume of transactions fell to $55.38856 million, or more than 7 percent.
Bitcoin was mostly range bound during the week that it opened on October 6. And traders were already planning a “violent breakout”. BTC/USD fluctuated between a few hundred and a few thousand dollars throughout the day. The $20,000 mark provided a focal point for the pair. It moved in lockstep with US stocks consolidating, and the dollar meandering strong. Whalemap, an on-chain analytics resource, turned to large-scale sell and buy points to identify potential support and resistance. The downside was that $19,174 was the threshold for whale buybacks. This suggests their strength. A resistance cloud appears to be emerging at $21,500. The traders in the derivatives markets have been adding dry powder to their portfolios, which could lead to a “violent end” of the status quo. The asset is now worth around $20,000 and BTC-denominated options show that the interest rate is just below the record at 604,000 BTC. Stablecoins were the main backers of the all-time highest open interest, a marked change from April 2021’s strong bullish volatility that saw BTC/USD reach $58,000.
The Ether (ETH), although showing a positive trade sentiment, is now up 7.5% between October 2nd and October 6th. However, the price tracing below the $1350 level wasn’t convincing enough to elicit bullish activity from derivatives traders. The Ether price remains below the $2,000 mark, which was last seen August 14th. After the Merge, the average transaction fee for Ether hovered around $2. September 15th marked the most important upgrade to Ethereum’s chain. This was the transition from energy-intensive mining technology into a suite validators that is required to deposit 32 Ethereum stakes. Merge is needed to implement future sharding and parallel processing features. It was not created at this stage to solve scaling problems. According to DappRadar the Ethereum network doesn’t have any of the top five decentralized user apps. Analyzing derivatives data can help investors understand how confident they are that Ether will continue to rally towards $1500 or greater. As regulatory and macroeconomic uncertainties continue to dictate the trend, Ether bulls might struggle to gain ground. Surprisingly, $1,500 could see a 10% increase, which would shock the bears, and cause sell-offs of short positions.
The macro side of things was that the US Dollar Index (DXY) continued to show relative weakness despite its falling from highs over the week. This helped boost sentiment among risk assets. According to some, the S&P 500 reading at 3,300 would be considered “fair value”. The S&P 500 index rose 2.5% over the past week to 3,783, at the close of the Oct. 5 trading session. The Fed will not reverse the trend or market failures to reach fair value before there is a significant buy signal. CME Group’s FedWatch tool estimates that in November, it’s more likely than not that the 75 basis points rise coincides with those of the previous two.
Technical Outlook
BITCOIN:
Chart for Bitcoin (BTC).
BITCOIN gained momentum this week, as prices reached the psychological level at $20k and hit the weekly high at $20,475. The resistance at $20,750 was not broken by the bulls and profit booking is taking place. Technically, the asset trades sideways between $18,500 and $20,500 daily. BTC is trading in a strong support area between $18,000 and $17,500 ($17.622 Previous Bottom), while $20,750 to $22,500 act as strong resistance levels. The asset’s trend will be determined further by breakouts at these levels, which are supported by good volumes. A neutral stance is indicated by RSI of 50 and Flat Moving Averages.
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 $1,750 or $2,000 levels if it breaks below $1,500. A break below $1.250 will result in further decline.
BNB:
BNB Chart
BNB prices rose by almost 15%, reaching a weekly high of $298.2. The asset is currently at 300 (Horizontal Trendline) and has strong resistance. It can rally to $335 if it breaks the resistance and closes above it. The asset will receive strong support from $280 and $255.
Weekly Snapshot
USD ($)29 Sep 2206 Oct 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$19,573$19,9551.95%$20,338$18,553$20,380$18,971ETH$1,336$1,3521.20%$1,397$1,268$1,380$1,271BNB$283.79$286.631.00%$286.07$266.98$297.99$278.36crypto1w – % Vol. Change (Global)BitCoin (BTC)-23.65%Ethereum (ETH)-35.85%Binance Coin (BNB)-7.35%Resistance 2$32,500$2,400$1.20$335Resistance 1$28,500$2,000$1.00$300USDBTCETHBNBBNBSupport 1$23,000$1,700$0.75$280Support 2$20,000$1,300$0.63$255
Market Updates
Transit Swap, a multichain, decentralized exchange aggregator lost approximately $21 million when a hacker exploited a bug in a swap contract. Transit Swap, a multichain decentralized exchange aggregator, lost approximately $21 million after a hacker exploited an internal bug on a swap contract.
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 serve as investment advice.
07th-October-2022 ZebPay.
