Crypto Weekly Outlook: October 4, 2021
Updated: Oct 6, 2021
The crypto market has held strong over the weekend, consolidating the Friday pop that came about as a result of a Bitcoin short squeeze as well as Fed Chair Powell stating that the Federal Reserve has no intention of banning cryptocurrencies. As of this writing, the global cryptocurrency market cap is above $2T at $2.01T. Most crypto analysts are bullish for the remainder of the year and are speculating that the current month will be an “Uptober” month.
Bitcoin (BTC-USD), is currently sitting near the $47,460 area. It has been mostly range bound between $47K-$48K since the Friday surge with no hint of returning last week’s gains. The $44K area can now be said to act as a strong support level, while near term resistance is present at the $47,850 area. Many analysts are expecting a strong month for BTC with Rekt Capital noting that BTC has been charting higher lows for four months, with each new low finding buyer support. Furthermore, analyst PlanB predicts a closing price in October of $63K while macro guru Raoul Paul stated that BTC is forming a huge descending wedge reminiscent of a pattern that appeared from 2017 to 2020 - a bullish sign.
Ethereum (ETH-USD), as of this writing, is trading at $3,300. It has also kept its gains from Friday. However, it needs to solidly clear the $3,360 resistance area before going higher. The 61.8% Fibonacci retracement level and the 50-day MA are both present at this area. If ETH fails to convincingly break through this resistance, the technical trend would not be bullish. Although there is positive news on the fundamental side as TikTok has recently introduced creator-curated NFTs into its platform via Immutable X and Ethereum. TikTok, with its 1 billion active users, will now be getting exposed to Ethereum, a positive development. Additionally, during the third quarter, over $1.2B ETH was burnt, further highlighting its decreasing supply.