Bitcoin, Ether, Major Altcoins – Weekly Market Update October 11, 2021
The total crypto market cap added $222 billion to its valuation for the last seven days and now stands at $2,321 billion. The top 10 coins showed mixed results for the same time period with Polkadot (DOT) adding 11.5 percent for the period while Solana (SOL) lost 13 percent. Bitcoin (BTC) is currently trading at $56,300 while ether (ETH) is at $3,570.
The bitcoin bulls successfully defended the horizontal support near $40,500 which resulted in the full capitulation of sellers by Sunday, October 3. The leading cryptocurrency ended September with a 7 percent loss but initiated a fresh new uptrend rally in the first days of the new month.
On Sunday, October 3 the coin reached the important $48,000 mark. This level served as a short-term resistance during the trend reversal attempt in mid-September and was now about to test the price momentum.
The weekly timeframe chart was looking good for the long-term BTC holders as it was suggesting the recent pullback is rather a temporary retracement than a beginning of a new bear market.
The new seven-day period started with a short green candle to $49,100 as buyers surpassed the Volume Profile Point of Control and BTC was now heading towards the psychological level of $50,000.
On Tuesday, two important short-term milestones were achieved. First, the mentioned critical horizontal level was broken, and second, bitcoin climbed above the three-point strong weekly downtrend line for the first time since mid-April suggesting a general reversal in the market direction might be upon us. It closed the session at $51,400 with a 4.7 percent of increase.
The mid-week trading on Wednesday, October 6 was no different as the cryptocurrency market was surging. Bitcoin was once again leading the group with more than 7 percent being added to its valuation and $55,000 was the next point of interest for bulls.
On Thursday, October 7 we saw a 2.8 percent price correction as profits started to flow from BTC to the lagging altcoins.
The last day of the workweek came with an attempt from bulls to break above $55,300, but the move was fully retraced and quickly absorbed by the sell orders located in that area, so the coin ended the day flat.
The weekend of October 9-10 started with a short green candle to $54,900 on Saturday. This was followed by another failed breakout attempt on Sunday. Bitcoin was 13 percent up on a weekly basis, still, it successfully surpassed the mid-term downtrend line.
The biggest cryptocurrency is currently trading above $56,000 as the uptrend rally was resumed at the beginning of the new week.
The Ethereum Project token ETH bottomed slightly below the $3,000 demand zone (at $2,760 to be more precise) and started moving in the opposite direction. The coin broke above the short-term downtrend on October 1 and by Sunday, October 3 reached the upper end of the old range.
The cryptocurrency market managed to quickly absorb the latest FUD coming from China and chose to follow the US regulators and financial authorities as both the Federal Reserve and the Security and Exchange Commissions confirmed there are no plans to ban any digital assets which are compliant with the laws.
On Monday, the ether consolidated in the above-mentioned area after successfully testing the previous resistance level now turned support.
The trading session on Tuesday, October 5 was once again good for bulls as the ETH/USDT pair was closely following bitcoin’s trajectory. It moved up to $3,515.
On Wednesday, the biggest altcoin hit the $3,619 range high and formed a solid green candle to $3,576. The burning fees mechanism in combination with the ETH 2.0 staking was putting deflationary pressure on the coin, cutting the supply.
The Thursday session brought no high-intensity moves to the ETH/USDT pair. The coin remained almost flat, struggling to break above the September high.
On Friday, October 8, the buyers pushed the price up to $3,692 during intraday but were not able to consolidate above the mentioned swing high and the move was fully retraced by the end of the session.
The first day of the weekend came with another flat session and then on Sunday the coin registered a 4 percent drop to $3,400 but the support line played its role perfectly, keeping the uptrend intact.
The ETH token is currently trading at $3,588.
- Polkadot (DOT)
Polkadot is a layer 0 protocol that aims to facilitate communication and interoperability between the different blockchain ecosystems without actually competing with them.
The Kusama parachain auctions are still ongoing, but investors are now looking forward to the upcoming Polkadot crowdloans, which are expected to start sometime next month and mark the de-facto Polkadot mainnet launch.
The DOT token successfully found support at the $25 demand zone two weeks ago and since then has added more than 40 percent to its valuation.
Next for the coin is to surpass the $38.6 September high and consolidate for an attack of the strong support/resistance zone at $40-$41.
Traders are betting on a new all-time high soon mainly due to the fact a lot DOT coins will be locked in the parachain auctions and thus significantly reducing the circulating supply.
Altcoin of the Week
Our altcoin of the week is Spell Token (SPELL). One of the native tokens of the Abracadabra Money (the other being MIM, Magic Internet Money), a cross-chain stablecoin lending protocol added the stunning 216 percent to its value for the last seven days. The coin successfully entered the Top 100 list on CoinGecko last week after registering its first and second billion in Total Value Locked (TVL) in less than two weeks. Abracadabra now operates with $2.26 billion, a 75 percent increase on a weekly basis.
The multi-chain project is building itself as a direct competitor to MakerDAO and is definitely getting some attention mainly due to its meteoric rise.
SPELL is currently ranked at #104 with a total market cap of approximately $1.05 billion. It peaked at $0.0233 on Sunday, October 10, and is currently trading at $0.018.