October 2, 2021
Cryptocurrencies: Weekly Update
By Holden Milstein
Cryptocurrency bull season resumed this week with Bitcoin (BTC) flying through the $45,000 level on Friday, followed by the rest of the cryptocurrency market seeing double-digit price gains overnight. It was Bitcoin’s best daily performance since June 9th, growing 9.91% on the first day of October.
If you’ve been around crypto for a little while, you might remember that October 2020 saw BTC’s price rise 35% and began the 3-month run from $10,000 to nearly $42,000.
Regulators and pro free-market politicians continue to bicker over the best way to create legislation for the cryptocurrency market, but with no clear regulations in sight, it looks like the crypto market may be green lit for a repeat of Q4 2020.
Areas to focus on from this week...
Biggest Winners: Uniswap (UNI) +38.58% over 7-days after Chinese traders flock to Decentralized Exchanges (DEX), Axie Infinity (AXS) +73.32% over 7-days showing interest in blockchain gaming is hotter than ever.
Biggest Losers: Stablecoins like Tether (USDT) and US Dollar Coin (USDC) appear to be the main target of Fed and SEC regulations, however, this may turn out to be good news as attention is diverted from the speculative cryptocurrency market.
What to watch: Psychological resistance levels in the largest cryptocurrencies -- BTC to clear $50,000, Ethereum (ETH) to clear $3,500, Cardano (ADA) to regain its 50-day Moving Average (DMA) and clear $2.50.
Bitcoin and Ethereum became oversold at the beginning of the week, both on price and momentum according to Real Motion.
BTC and ETH broke out of their recent consolidation at oversold levels and regained their 50-DMA’s as new support levels. BTC was trading between $40,000 and $45,000, the lower half of a larger 40k-50k trading range, while ETH was trading between $2,650 and $3,000.
Bitcoin flew to a 10-day high of $48,500, while Ethereum got up to $3,450. Neither coin is overbought on price or Real Motion currently, meaning we could see another explosive move in the near future.
Keep your fingers crossed for another successful October for large-cap crypto. Experts continue to predict new all-time highs for large cap cryptocurrencies by the end of 2021, with many believing that $100,000 Bitcoin is well within reach.
And the bullish price action wasn’t limited to BTC and ETH...
Solana (SOL) saw a strong recovery back into an uptrend, with +29.3% growth over the past 7-days and price back above the $160 level. The Solana network has grown significantly over the past few months and appears to be a major competitor to the two largest Decentralized Finance (DeFi) platforms Ethereum and Cardano.
The Solana network has tons of developers creating blockchain applications, games and markets that provide significant value to the cryptocurrency. Solana NFT platforms are also some of the biggest competitors to Ethereum based NFT markets like OpenSea.
Additionally, the adoption of cryptocurrencies and blockchain technologies by countries continues to spread...
Ukraine looks to potentially be the next El Salvador, with the adoption of BTC already happening at massive scales. Other countries like Bhutan are exploring a partnership with Ripple Labs (XRP) to develop a Central Bank Digital Currency (CBDC).
It’s not only countries that are grappling with embracing cryptocurrencies and blockchain technologies…
With China’s crackdown, and major adoption of crypto businesses in several states like Texas, Wyoming, and Ohio, the US looks to benefit significantly if our politicians and regulators can figure out a way to fairly and efficiently regulate the crypto industry.