Cryptocurrencies started the week with gains, after right-winger and free market enthusiast Javier Milei won Argentina's election, unleashing speculation about the potential adoption of Bitcoin, in a country of nearly 40 million people. Milei has made repeated, controversial statements about the role of central banks, which he described as a 'scam,' calling Bitcoin "an asset that gives power back to the private sector.
- SEC dismisses approval of spot bitcoin ETF applications by GlobalX and Franklin Templeton
- BlackRock has officially filed its Ethereum ETF application with the SEC. The iShares Ethereum ETF-if accepted-will be available for trading on the Nasdaq exchange
- Dollar Index (USDIDX) loses and retreats to early September levels, historically weaker dollar helped cryptocurrencies
- In previous halves, the Bitcoin price before them reached levels of 61.8 - 78.6 Fibonacci retracement of the previous bull market wave which, if it were to repeat, suggests levels between $39,000 and $50,000 by April 2024
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Since volume concentration between $33,000 and $35,000 is low, a $33,000 may be a potential 'bottom' for a short-term correction. Source: Material Indicators
Bitcoin and Ethereum charts. Does cryptocurrencies need 'new catalyst' to extend the rally?
BITCOIN has retreated twice from the $37,800 level, and the rally has now stopped near $37,500, indicating that supply, which failed to realize gains during the two previous rallies, has decided to take advantage of the rebound and hand BTC over to new buyers. The key price range to watch in the short term remains $36,000. A retreat below this level could suggest a correction to $33,000, as the level between $35,000 and $33,000 is very light in terms of the number of trades and volume concentration. On the other hand, a rally to $38,000 could herald a test of $40,000. Source: xStation5
Looking at BITCOIN, on the broader D1 interval, we see that in the vicinity of $33,000 is the 23.6 Fibonacci retracement of the upward wave from February, this year. Another important support is at $31,000, where we see two previous peaks from the summer and spring of 2023, as well as the 38.2 Fibo retracement and important on-chain levels - the average on-chain buying price by short-term investors, which historically has often been tested as a 'break even' level of most active traders, during Bitcoin corrections. Source: xStation5
ETHEREUM halted the correction near $1,900, where we see the 38.2 Fibonacci retracement of the October 2023 upward wave, when prices settled around $1,500. The MACD is still far from 'overheating', also the RSI still leaves 'room' for increases above $2,000, but prices are now again below most bullish trend line, signalling possible impending weakness. Source: xStation5
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