In the last weekly analysis of cryptocurrency market, we mentioned that Bitcoin Uptrend is strong. Even though Ethereum is not. We predicted that Bitcoin may break the resistance level at $13160, which happened 5 days ago. Ethereum has the same condition as many as other cryptocurrencies in the market. As a result, what happened by the last week was not far from expectations. It means that Bitcoin continued its uptrend and other cryptos experienced decline in price. We can explain the situation by comparing the today’s Bitcoin dominance and market cap with 1st Sept. Since 1st Sept the market cap grown for 2%, while Bitcoin dominance increased from 56% to 65%. So, it can be concluded that most investors are selling their altcoins and buy Bitcoin. In this post we are going to have a weekly analysis (25-31Oct).
Generally, Bitcoin will have a good performance in midterm. The price action of Bitcoin and the MVRV Z-Score indicator, which provided by Glassnode, both confirm it. The mentioned indicator uses in order to identify that an asset is in overbought condition or not. Whenever the indicator reaches 7, it shows that the bullish trend is over. Now, it shows 2 for Bitcoin, which is a sign that Bitcoin bullish trend will continue.
But, Bitcoin may show different performance in shorter period of time. However, the coming the United States election may affect the market in the coming next week, it’s expected that Bitcoin will fall to $12700 or even $12300 in the two or three next coming weeks and then start a new uptrend again. If, this scenario happens, it would be a right time to enter the market. For the moment, it’s recommended to do not rush in order to enter the market.
Weekly Analysis (25-31Oct); Ethereum
A price decline is expected for Ethereum. The Bitcoin price decline in the future also may affect Ethereum negatively. For now, we need to wait to find out that would the candles be able to reach above the Short term uptrend line or not. In case, it doesn’t happen, it’s expected that price will fall to $365.