- Bitcoin still below upper limit of uptrend channel; upward reaction to US PMI erased
- Sentiment around most altcoins is mixed, but Bitcoin's dominance weakens slightly; Ethereum gains nearly 5%
- Graph gains 12% despite lack of significant project news; benefits from wave of euphoria around cryptocurrency, linked to AI Bittensor (TAO) trend, whose prices have risen nearly 150% since September 7
Wall Street optimism and expectations of policy easing at the Fed are currently driving the cryptocurrency market, with a number of industry analysts expecting stronger inflows into US ETFs offering Bitcoin and Ethereum. ETH has gained more than 15% in the past seven days.
- In recent days, inflows into Ethereum have been unleashed by retail investors, while the so-called 'whales' have mostly sold off in recent weeks, although project developer Vitalik Buterin has indicated that it is close to reaching a milestone of low transaction fees.
- Investors are hopeful that Pectra's new hard-fork and new EIPs proposed by the developers will improve the Ethereum blockchain. On the other hand, well-known in the community, Cardano developer Charles Hoskinson pointed out that a divided Congress and a new cryptocurrency trading platform proposed by Donald Trump will divide the market and regulatory environment, with potential for the industry.
Net inflows to US spot Bitcoin ETFs are still in plus, however investors activity weakened with almost 0 inflows to BlackRock's IBIT since the end of August - it's quite weak reaction to very dovish Fed.
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Source: XTB Research, Bloomberg Finance L.P.
BITCOIN, ETHEREUM and GRAPH charts (D1 interval)
The key resistance level to break through is above $65,000; the cryptocurrency has risen above all, three key momentum averages and has three major downward waves behind it. A breakout above the 23.6 Fibo of the January 2024 upward wave and at the same time the upper limit of the downtrend channel would open the way to potential new historical maxima.
Source: xStation5
Ethereum is trading up nearly 5% today and has broken out above the 50-day exponential EMA50 average, signaling a return of bullish momentum. The main resistance is currently marked by the $2,800 level, where we see the last local peak and EM100 (black line).
Source: xStation5
The cryptocurrency has broken out above an important resistance line at the SMA50 level (near $0.15) and is now close to testing the EMA100, at $0.18. The key test is the $0.19.5 - $0.20 level where we see the 23.6 Fibonacci retracement of the 2023 downward wave and the EMA200 (red line).
Source: xStation5
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