Crypto Market Trends – October 4th, 2021
Leaves Turn Yellow and the Market Turns Green: Trading Week Results and Forecasts
The cryptocurrency market has been mostly trading in the green this week, with some coins registering gains while others have consolidated positively on their charts. But the players continue to be cautious, waiting for the "China vs. crypto" show to continue. Nevertheless, the forecasts are encouraging – be charged with the positive from reading our results of the trading week.
Bitcoin Rising: Green Light for Bulls
The weekly candlestick closed and at the current price it showed a complete absorption of the previous red candlestick. In the candlestick analysis, it is considered as one of the strongest bullish signals, especially if the green candlestick closes near its maximum. Bitcoin went to retest the 0.5 Fibonacci retracement level ($47,068), from which there was a technical bounce of the instrument. The price closed above the 20 MA 2 H moving average, which in general is a good sign for the bulls, it is important to hold it for the development of the upward movement. The 21-week EMA (marked in red), which still remained below and kept the price at the last moment, also looks bullish.
It's likely to see another attempt to storm to the top of the $47,000 – $48,500 price range, which Bitcoin returned to. After that, we expect the correction of the instrument to the middle of the ascending channel with the subsequent growth impulse to the upper border of the price formation. In general, there is a high probability of consolidation continuation within the specified price corridor: $47,000 – $48,500. Strong resistances on the weekly timeframes are 53k, 62k, and then there is a dynamic at 80k.
Ethereum Has One More Obstacle to Overcome Before $4000
The second largest cryptocurrency by market cap rose more than 15% on Saturday, gaining over 400 pips in market value. ETH rose from a low of $2850 to a high of $3280 per day. But from a technical point of view, there is still an obstacle before ETH can grow to $4000. The Fibonacci retracement level, measured from an all-time high in mid-May ($4384) to a low on June 22 ($1700), suggests that $3360 is an important supply barrier. The 61.8% Fibonacci retracement level and the 50-day moving average hovered around this price point. Such a significant cluster of resistance can help determine the direction of the Ethereum trend.
For example, another bullish momentum that allows Ethereum to break through $3,360 could mean a resumption of the uptrend. In this case, ETH could rally to test the $4,000 psychological resistance level before targeting a new all-time high of $4,384. However, market participants should keep in mind the threat posed by the $3360 level. A rebound from this resistance level could lead to further losses, as some traders may want to exit their long positions. Increased pressure from below could push Ethereum below $2700 and start a new downtrend towards $1700 (but given the general market sentiment – this scenario seems unlikely).
Peeking at the Whale: Time to Pay Attention to Solana and UNI
Every three months, Grayscale Investments rebalances the portfolio in its investment fund GDLC (manages $495 million in assets). This time, the company has added Solana (SOL) and Uniswap (UNI) tokens. SOL and UNI account for 3.24% and 1.06% of the fund's shares, respectively, while the stocks of Bitcoin Cash (BCH) and Litecoin (LTC) have been reduced. Bitcoin and Ether continue to make up a significant portion of the GDLC portfolio at 62.19% and 26.08%. Separately, Grayscale manages the DeFi fund, to which no new tokens have been added at the current stage. Almost half of the DeFi fund's assets (45.2%) are concentrated in the Uniswap token.