Crypto Weekly Outlook: October 11, 2021
The crypto market has largely been buoyed by Bitcoin’s performance ever since it reclaimed its $1 trillion market capitalization last week. However, the majority of the major alt coins have failed to keep pace with Bitcoin’s gains leading some analysts to predict a “Bitcoin season” before the alt coins can re-emerge as a force of their own again. This alt coin underperformance is most visible when comparing Ethereum and Bitcoin, with ETH/BTC at its lowest level since the beginning of August. That being said, the total crypto market cap has held steady over the weekend with a bullish bias, currently sitting near $2.35T.
As of this writing, Bitcoin (BTC-USD) is trading at $57,400, although it earlier went as high as $57,600. It has steadily been rising since the end of last week. BTC’s strong rally has pushed its market dominance to as high as 46% whereas one month ago, its dominance was sitting closer to 41%. This is the first time in five months that Bitcoin has reached the $57K level. The price has already broken through the $56, 100 resistance level as well as the key $57,200 resistance area. This area is important as it is a horizontal and Fibonacci resistance level. If the price consolidates above this area then the next stop would be $60K and then BTC’s previous all time high of $64,640. However, if the price pulls back to the $53K area, BTC could drop to its 20-day exponential MA of $49.5K. According to Santiment, the recent bullish price action has been driven by whales on the spot market and not by smaller retail traders. Additionally, the price action has been supported by the news that Bitcoin recently saw its network handle over $30B in a single day, a new all time high and a 40x increase in settlement value since the start of 2020.