Macro Overview
- US Unemployment Claims Show Slight Beat on Expectations: Weekly US Unemployment Claims came in at 198K, less than the forecast of 210K. This is somewhat bearish for the crypto space because USD and crypto tend to have an inverse relationship. However, Bitcoin showed resilience despite this news.
- Federal Reserve Chair on Inflation and Rate Hikes: Federal Reserve Chair Jerome Powell, on October 19, expressed concerns about high inflation in the US. He noted that bringing it down to the Fed’s 2% target level would likely necessitate a slower-growing economy and job market. Powell’s remarks seemed to contradict market expectations that the US central bank had finished raising interest rates.
Crypto Markets Overview
- Market Movement: This week, the crypto markets experienced a major 5.80% incline, bringing the total market capitalization to $1.10 trillion. Notably, BTC saw a rise of 9% and ETH saw an incline of 2.57%. Bitcoin’s dominance stands at 52.53%, while Ethereum’s holds at 17.46%.
- Tesla Holds $275 Million in Bitcoin on Balance Sheet: Elon Musk’s Tesla still has 9,720 bitcoins worth $275 million on its balance sheet, according to the latest earnings report. While Bitcoin didn’t react immediately, it saw positive gains afterward.
- Bitcoin Price Misled by False ETF Approval Claim: A misleading post on social media falsely claimed the approval of a Bitcoin ETF, causing Bitcoin’s price to spike toward $30,000. This resulted in $100 million in liquidations. The claim was debunked by BlackRock and others, and Bitcoin returned to $28,000.
- SEC Signals No Objection to Grayscale’s Bitcoin ETF Proposal: The SEC has shown no objections to Grayscale Investments’ proposed spot Bitcoin ETF, raising anticipation for a potential breakthrough in the cryptocurrency industry. The overall market had a positive response to this news.
Top Tokens Update
- Ripple’s Legal Victory: SEC Seeks to Dismiss Claims Against Executives, Ripple secured another legal victory as the SEC moved to dismiss all claims against Ripple’s CEO Brad Garlinghouse and executive chair Chris Larsen. This news led to an 8.7% spike in XRP’s price.
- Uniswap Labs Introduces 0.15% Fee on ETH and USDC Swaps: Uniswap Labs will now charge a 0.15% fee on crypto swaps involving ETH, USDC, and other tokens through its interface. This led to a bearish trend in the UNI token price.
- Sui Coin Faces Probe for Alleged Misrepresentation: Sui Coin is under investigation by the Financial Supervisory Service for allegedly providing false information about its circulation volume and staking profits. The news led to a bearish trend for SUI, but the company denied all accusations from the Korean Financial Authority.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Oct 26 | 2:05 AM |
US SEC Chair Gensler Speaks
|
– |
| Oct 26 | 6:00 PM | US Advance GDP (Quarterly) |
Actual’ less than ‘Forecast’ is good for crypto
|
| Oct 26 | 6:00 PM | US Unemployment Claims(Weekly) |
Actual’ greater than ‘Forecast’ is good for crypto
|
| Oct 27 | 6:00 PM | US Core PCE Price Index (monthly) |
Actual’ less than ‘Forecast’ is good for crypto
|
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- BTC displayed bullish behavior this week, driven by several positive news events.
- It successfully broke the important resistance at $28,600. However, BTC still faces two significant resistance levels, one at $30,000 and another near $31,200, both known for high liquidity.
- The fact that BTC is trading above both the 50 and 200 EMA is a positive sign, but the RSI in the daily chart indicates an overbought condition, suggesting the possibility of a slight retracement.
Ethereum Technical Analysis
Summary:
- ETH USDT had a positive week, but it remains below both the 50 EMA (Exponential Moving Average) and the SMA (Simple Moving Average) on the daily chart.
- On the bright side, the RSI suggests a positive sentiment.
- ETH is currently dealing with several resistance levels at $1607 (0.5 fib level), $1635 (previous week high), $1694 (previous month high), and a crucial level at $1733 (0.382 fib level).
- Meanwhile, support levels are found at $1532 (previous month low), $1522 (previous week low), and $1480 (0.618 fib level).
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