Bitcoin (BTC) and Ethereum(ETH) Market Update October 6, 2022

The total crypto market cap grew by $39 billion for the period since Monday and now stands at $965 billion. The top ten currencies are all in green with XRP (XRP) and ether (ETH) leading the group with 4 and 2.3 percent gains respectively. At the time of writing Bitcoin (BTC) is trading at $20,200. Ethereum (ETH) is at $1,365.

BTC/USD

Bitcoin closed the trading day on Sunday, October 2 at $19,000 in its third consecutive day in red. Still, it ended the previous seven-day period with a 1.3 percent increase no matter the fact that it broke the horizontal support on the weekly timeframe. Many analysts were pointing to a fake-out rather than a real break for both BTC and S&P500 (SPX) that was to be followed by a bearish re-test and a downtrend continuation afterward.

On Monday, the BTC/USDT pair rallied all the way up to $19,655 to close above the 21-day EMA while also adding 3 percent to its market cap. The coin full engulfed the last three candles, but the $20,000-$20,500 area remained the real test for the buyers’ strength.

The Tuesday trading was no different and the biggest cryptocurrency continued to move North. It increased by another 3.4 percent and stopped at $20,300.

We could clearly see a Bullish divergence between the price and the Relative Strength Index (RSI) on both the daily and weekly time-frames, supporting the upside reversal idea.

In the meantime, SPX was already above the old weekly support.

The mid-week session on Wednesday came with an early drop to $19,800. Bitcoin had already surpassed the former horizontal support and the best buyers could hope for was to successfully turn it into such a stability line again, consolidate above it, and eventually continue with the uptrend.

The coin partially recovered in the second part of the day and closed with a small loss at $20,135.

What we are seeing midday on Thursday is a slight increase in the price, but the overall volatility is low.

ETH/USD

The Ethereum Project token ETH closed last week at $1,276 and with a 1.5 percent loss. It stopped at the improvised mid-term diagonal support line on the daily timeframe making a new lower low on the weekly chart.

On Monday, October 3, it opened the new trading period strong. The ether climbed up to $1,327 or 3.8 percent higher but generally speaking it just continued trading in the $1,250-$1,450 range.

We saw another green candle being formed on Tuesday as ETH extended its good performance adding another 2.5 percent.

Bulls, however, faced some resistance near the 21-day EMA above $1,370 and on the third day of the workweek were forced to come down to $1,315 in the morning. Still, the price consolidated later on and jumped back up to $1,352.

For ETH it is crucial to show some strength above $1,420 and stabilize properly above the higher boundary of the already-mentioned range. Looking at the bigger picture, it is clear that the price action is getting reduced to a smaller and smaller area and a breakout can be expected by the end of the month in any direction.

As of the time of writing, the ETH/USDT pair is trading slightly higher.