Weekly Market Analysis - October, 30th
Learn analysis from the weekly crypto market price action and where the market is headed next.
In this Analysis:
Bitcoin
Bitcoin has finally broken out of it’s range from $18.400-$20,400. After over five weeks of sideways movement we have seen the upper bounds of the range momentarily broken. Consolidation above $20,400 will be a bullish sign for further upwards moves.
Bitcoin rose from $19,400 this week by $1,800 to the $21,000 price area. We saw price quickly dropping to $20,000, followed by a swift recovery to the $20,600 price area we are at now.
Bitcoin’s market capitalization has greatly increased from $367 Billion to $398 Billion. This is equivalent to an 8.4% rise.
Bullish momentum in the markets currently could potentially be attributed to the dollar performing poorly, dropping in value, indicating that investors are moving their money to markets such as Crypto..
$20,400 is the key level to watch currently. If Bitcoin continues to consolidate above it, we could see another leg upwards towards the $22,000 region. If the level is again broken, it will show a sign of weakness and indicate more downside to the next support of $18,400.
Ethereum
Ethereum too has broken out of it’s five week range of $1,250 – $1,400. The price surged to around $1,640 following a market pump this week.
Ethereum’s market capitalization has drastically increased from $159 Billion to $194 Billion, equalling a huge 22% rise.
When you compare this to Bitcoin, Ethereum has seen better price action, increasing around 14% more in the same time-frame.
The key areas for Ethereum have now changed, with $1,700 being the new area to break above and consolidate above for bullish confirmation. If it is rejected from $1,700, then $1,500 and then $1,250 are the key levels to watch, if broken it will indicate strong bearish price action.
What's Next?
Bullish perspective – @MacnBTC
A bullish perspective from market analyst, @MacnBTC, market analyst on Twitter with 271k followers, indicates his belief that we see Bitcoin’s price breaking above $21,000 in early November.
$21,000 is the targeted price, as it is the level that was reached in early September and Mid-August, signalling it is attainable, but we may see quite some resistance once we approach that area.
@MacnBTC’s chart shows his expectation for the price of Bitcoin to hit around $21,500 by November 7th. This will complete the ‘W’ pattern on the chart, from which point the next price expectation can be re-assessed.
Bearish perspective – @CryptoCapo_
A bearish perspective from market analyst, @CryptoCapo_, a Twitter account with 575k followers, analyses the potential market movement over the next month for Bitcoin.
@CryptoCapo_ charts his belief that Bitcoin will potentially hit one more peak of up to $21,500 in the coming days, before a gigantic dump to the downside, with a $14,000 price prediction.
Invalidations for this scenario are consolidation above $21,500 and also $23,000.
@CryptoCapo_ believes the dumping scenario is likely to complete on final leg downwards to reset the markets, following inflation, war conflicts and the global economic and energy crisis.
Other Altcoins
For other altcoins (excluding Bitcoin and Ethereum) during this week we saw the market capitalization rise greatly from $350 Billion to $382 Billion, an increase of 9.1%.
This price action shows strong correlation to Bitcoin, with similar rises, while Ethereum continues to steal the show during market pumps.
Ethereum has been the best store of value over the past week, increasing 14% more than Bitcoin, 13% more than other altcoins.
(CoinMarketCap).
The Top 100 Altcoin gainers were:
Meanwhile the biggest losers were:
(CoinMarketCap)
Bitcoin Dominance
This week, the uptrend we have been seeing on Bitcoin dominance has momentarily been halted, while the market pumps. Bitcoin’s dominance has decreased from 41.9% to 40.7% in the last week.
This signals that investors are distributing their funds to altcoin, while looking to catch greater pumps and returns on investments while Bitcoin is being out-performed.
Important Indicators:
- If Bitcoin dominance rises while the Bitcoin price rises, that will signal a potential rally for Bitcoin, while alt’s perform poorly.
- Once we start to see this dominance drop, while the Bitcoin price also rises, that will be a sign that altcoins will start to out-perform Bitcoin.
Market Sentiment
The current market sentiment has finally changed from ‘Fear’, after several weeks in this state, to ‘Extreme Fear’, with a score of 31 out of 100.
In line with Bitcoin breaking out of the 5 week sideways movement, the Fear and Greed Index has too become less fearful, indicating investors are looking to get back into the markets as confidence returns.
When you compare the current score of 31, to the yearly Crypto Fear & Greed index, this is historically a good area to buy still.
Important Indicators:
- High amount of ‘Fear’ is an indicator to buy
- High amount of ‘Greed’ in an indicator to sell
News
There have been several weekly news stories and on-goings in the world that have impacted the crypto market. The following are some of the key headlines:
CRYPTO MARKET PRICE ACTION
Finally we have had some exciting price action, after over five weeks of sideways movement, with Bitcoin ranging between $18,400-$20,400, the range has been momentarily broken. Bitcoin’s price soared to a high of $21,000 this week from a low of $19,200.
ELON MUSK NOW OWNS TWITTER
Tesla CEO and crypto advocate, Elon Musk, has complete his acquisition of social media giant, Twitter. Elon Musk seems likely to make a huge global imprint with this move, with future potential to encourage and promote a ‘free speech’ platform and then even perhaps impose crypto utility and crypto features within the platform.
Millions of Cash App users given access to Bitcoin Lightning network
Bitcoin, still the king of decentralized finance, has this week taken a further step towards mass adoption, with the latest Bitcoin Lightning network update, which gives millions of Cash app users access to transactions on the network.
PAYPAL CENTRALIZATION ISSUES? HOW BITCOIN SOLVES THIS
Freedom concerns have emerged among PayPal users this week, as policies state that users can experience ‘up to a £2,500 fine’ for violating use policies, concerned about what users spend their money on.
Investment Advice
Now would be a bad time to enter the markets. This is because we are seeing Bitcoin approaching strong levels of resistance around the $21,000 – $21,500 price area.
Looking to enter now, carries the risk of @CryptoCapo_’s scenario playing out, where strong rejection at this level could see the price fall to around the $14,000 area.
@MacnBTC’s prediction for short term pumping of the markets could definitely play out. This means that if you did want to take the risk of positioning yourself in the market currently, there could be nice gains to be made with altcoins, as they continue to out-perform Bitcoin.
As always, the long-term advice would be to find those altcoin gems that can make you life changing gains, and look to dollar-cost-average into long-term positions on them for the 2025 Bull Run, where we should see many huge returns on investments.
On the Cryptoreviewing.com website we provide top quality, comprehensive altcoin reviews to help you find the perfect investment, for those life-changing gains.
Not financial advice. Educational content only. Always do your own research.