Macro Overview
- US CPI Y/Y: The US Consumer Price Index (CPI) year-over-year came in at 2.4%, slightly above the expected 2.3%. This unexpected rise is viewed as negative for the crypto market, and the market reacted with a 2-3% decline following the announcement.
- US PPI M/M: The US Producer Price Index (PPI) month-over-month came in at 0.0%, slightly below the expected 0.1%. This lower-than-expected figure is seen as bullish for the crypto market, leading to a small uptick following the announcement.
- US Unemployment Claims: US Unemployment Claims came in higher at 258K, above the expected 231K. While this is typically seen as positive for the crypto market, the market did not show significant upside movement, likely due to the relatively lower impact of this event.
Crypto Markets Overview
Top Tokens Update
- TON-based Projects Notcoin and Dogs to Burn $4 Million in Tokens: Telegram-based projects Notcoin and Dogs Community are set to burn $4 million worth of tokens following a community vote. This move will reduce the overall supply of both $DOGS and $NOT tokens. Additionally, a significant portion of the unclaimed $DOGS tokens, around six billion, will be donated to charitable causes chosen by the community. Of the $4 million burn, about $3.5 million will come from Dogs Community’s token supply.
- Optimism Rolls Out Fifth Airdrop, Allocates 10.3 Million OP Tokens: Layer 2 network Optimism has announced its fifth airdrop, distributing 10.3 million OP tokens, valued at around $16 million, to 54,700 user addresses. This airdrop targets users engaged with the Superchain ecosystem, which comprises blockchains developed with the OP Stack.
To qualify, users needed to interact with at least 20 contracts on the Superchain from March 15 to September 15, 2024. Claiming is open until February 13, 2025. Optimism stated that this initiative rewards users who have significantly contributed to the growth of the Superchain ecosystem. - Uniswap Labs Unveils Ethereum Layer 2 Unichain: Uniswap Labs is developing Unichain, a custom Ethereum Layer 2 solution integrated with Optimism’s Superchain network. It will use Flashbots’ Rollup Boost for sub-second block times to enhance transaction speeds. Currently in testnet, Unichain will feature the Uniswap protocol, with V2, V3, and a preview of V4 expected by year-end. This initiative aims to improve interoperability within the Ethereum ecosystem.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Oct-17 | 6:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
| Oct-17 | 5:45 PM | EZ Monetary Policy Statement | More dovish than expected is good for crypto |
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is Neutral to Bullish.
- BTC followed the expected path from our last weekly report. Considering recent CPI and PPI data and the upcoming U.S. elections next month, BTC’s price action for next week appears sideways to bullish. On higher time frames, it remains bullish, but BTC needs to break above $63,000. If it fails, a pullback to $58,000 could occur before resuming its upward move.
- Key support levels to consider are around $60100 and $57700. On the upside, resistance levels is at $63000 & $64500.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavours.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears bullish.
- ETH outperformed BTC last week and looks bullish for the upcoming week. With BTC dominance declining and the BTC/ETH pair rising, ETH’s price action and patterns appear solid, signaling potential for a strong move upward this week.
- Significant support levels include $2330 and $2200, while resistance levels to watch are at $2550 and $2700.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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