New Bitcoin rebound

Crypto market update: 5- -11 october.

Given last week's uncertainty as to where the BTC market was going to move (see crypto market update on 28th SEPT – 4th OCT), the weekly market performing analysed in this article, doubts have been cleared out and a long awaited upward trend has taken place since mid-September.
Source: bitcoinist

In fact, the bullish trend has this time beaten the bearish positions and the best analysts who said that anything could happen have also decided to take this upward position.

Source: CoinMarketCap

As it can be seen in the chart above, since October 9th a bullish run is taking place climbing to over 11,000 USD, stabilizing between 11,200 and 11,600 USD, and breaking the 11,000 resistance. If we look at the chart below the volume of the last 24 hours has fallen indicating a slowdown of this escalation and the BTC price could find a new resistance at 11,500 USD.

The decline in BTC volatility (which is usually very high in the short term as an intrinsic feature of BTC) in recent months, leads us to assume a certain complacency of BTC holders in the market, who are foreseeing higher BTC values for 2021, and prefer to be in "HODL" mode (keeping their BTCs in wallets outside the Exchanges.

Many analysts do not need to wait for the 11,500 USD resistance to think that it is going to be broken before forecasting a possible price of 12,000 USD in the short term once the 11,400 USD is broken and even a big uptrend that could take the value to 14,000 is not ruled out. In this context we have a support of 11,000 and a resistance of 11,500 USD.

This reasoning makes sense when analysing the short, medium and long positions of the main exchanges such as Binance and OKEx, having bullish positions apart from the increase of balances in the wallets outside the exchanges.

Source: Coin360

According to the Coin360 mosaic for the last 7 days, most of values are green showing a general upward trend in the whole crypto market. The best values this week are BTC, ETH, LINK, LTC and XMR.

A clear bullish run of BTC this week clarifies the uncertainty about its trend that has always remained optimistic despite the corrections experienced in recent weeks.

Regarding the ETH performing, it has also experienced a significant rise so that the bullish traders are trying to maintain their price above the line of the downward trend of last weeks, reaching at this moment 373 USD and increasing its value by 5.21% this week. (See coin360 mosaic).

At this time there is uncertainty whether the price will break the USD 395 resistance despite strong opposition from the bearish side. If its value falls below the current levels again it may fall back to its support level of 333 USD.

After the stagnation suffered by the ETH last month, remaining in a very narrow band between 340-360 USD, there are clear indicators that show a recovery of its value:

  • ETH deposits in the exchanges are decreasing or what is the same, deposits in wallets outside the Exchanges are increasing (something that is also happening to the BTC as we have seen before). In total, we are witnessing a 51% decrease since the beginning of September.
  • The MetaMask wallet, ETH's classic wallet and for its tokens too, has reached more than 1 million active users, a figure that represents a 300% increase since February of this year.
  • ETH accumulation by the whales, as they expect a large price increase given the upgrade program and improvements prepared for the ETH blockchain in general, and for the DeFi and Etherium-based tokens in particular.
  • The expansion of the DeFi and their tokens has only just begun, despite having obvious problems in their growth such as very high gas commissions (much more than those of the BTC).

As it can be seen in the graph above, the price escalation of ETH is parallel to the one that is experienced by the BTC having a clear correlation between these values.

Respecting the altcoins apart from ETH, we have 5 altcoins with remarkable performances this week: Monero (XMR) with more than 18% increase, LINK with more than 12%, Storj again this week with more than 10%, Ripple (XRP) with 8% and Cardano (ADA) with just over 7%-

Source: Criptonoticias

1st) Monero (XMR): that had a growth of 18% the week considered, possibly due to the next update of its software to reduce the transaction size by 25% and speed up the verifications by 10%. This week this crypto went from 101 to 116 USD.

2nd) Chainlink (LINK): with a 12% increase, after the announcement of the Chainlink company to collaborate in the technical audit on the bitcoins anchored in the Etherium network and its backed guarantee to increase the transparency of this type of bitcoins stored in the ETH network.

3rd) Storj: that, for the second week in a row, continues to grow in value, possibly due to its inclusion in the DEX Exchange Tokenizer, and agreements with cloud storage companies for video distribution such as Tardigrade, achieving for those reasons a 10% increase. 

4th) Ripple (XRP): with an increase of 8%, possibly due to the implementation of an ODL (On-Demand Liquidity) credit line in XRP in order to help Small and Medium size companies to expand their business and be able to better compete with large companies. Loans/credits can be taken in XRP at low cost to finance their foreign trade operations.

5th) Cardano (ADA): with a 7% increase in value, due to the announcement of a new programming language for financial smart contracts with Cardano, very different from the one developed with the Etherium protocol because it has very particular properties regarding the customized tools that can be developed under this code.

In summary, this week is characterized by a generalized growth of the main cryptocurrencies, BTC and ETH, and in particular of projects that have continuous technological development with schedules of major updates and improvements.