- On Friday, cryptocurrencies suffered heavy losses, with position liquidations across exchanges reaching around $20 billion, according to Coinglass.
- Bitcoin has rebounded above $114,000 and is now trading near the average purchase price of short-term investors.
- Prices of BTC, ETH, and other cryptocurrencies have risen as the weekend brought renewed hopes of de-escalation between the U.S. and China.
- Both major cryptocurrencies found support at their 200-day exponential moving averages (EMA200), halting the recent declines.
- On Friday, cryptocurrencies suffered heavy losses, with position liquidations across exchanges reaching around $20 billion, according to Coinglass.
- Bitcoin has rebounded above $114,000 and is now trading near the average purchase price of short-term investors.
- Prices of BTC, ETH, and other cryptocurrencies have risen as the weekend brought renewed hopes of de-escalation between the U.S. and China.
- Both major cryptocurrencies found support at their 200-day exponential moving averages (EMA200), halting the recent declines.
The declines that accelerated on Friday have slowed down, giving way to a rebound and gains in the oversold cryptocurrency market. Ethereum is trading above $4,100 today, marking a gain of more than 10% from its recent local lows. Bitcoin has regained an important on-chain level — the neutral profitability of short-term investor addresses.
- As a result, if the price holds, selling pressure in this group may ease once again, providing the market with more room for a potential continuation of the upward trend. A key factor supporting cryptocurrencies is the positive sentiment on Wall Street, which persists as long as Trump and Beijing continue to give investors hope of avoiding a full-scale trade escalation.
- At the same time, Trump’s announced 100% tariffs remain the base scenario — although likely avoidable — and are theoretically set to take effect on November 1st. Until then, investors will hope for more clarity regarding a trade deal with China and potential export restrictions.
- The U.S. dollar continues to weaken amid the ongoing government shutdown and uncertainty about the real condition of the U.S. labor market. Investors view this development positively, seeing it as a reason for the Federal Reserve to accelerate monetary policy easing. Gold is up more than 2% today, and Bitcoin is indirectly benefiting from renewed interest in “hard assets.”
Ethereum (D1 timeframe)
The Friday decline in ETH prices halted around $3,600, which will likely remain an important medium-term support level, additionally reinforced by the 200-day EMA. Bulls are now targeting the $4,340 area, where the 50-day EMA is currently located.
Source: xStation5
Bitcoin (D1 timeframe)
Bitcoin has shown greater resilience than Ethereum, losing less during Friday’s sell-off. Today’s rebound is also less pronounced than that of the second-largest cryptocurrency. It appears that if the crypto bull market were to return, investors might shift more attention toward Ethereum, which has historically outperformed Bitcoin in the later stages of market cycles. Currently, BTC trades about 70% above its 2021 record highs, while Ethereum has only just surpassed its all-time high earlier this summer.
Source: xStation5
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