Bitcoin

Bitcoin has experienced a positive week of trading, with the cryptocurrency managing to defend the $34,000 level after a brief slip below it. While Bitcoin remains a dominant force in the market, several altcoins have shown notable strength, including Chainlink, Aptos, and Cardano.

BTC’s Resilient Week

Bitcoin‘s favorable week began with the cryptocurrency decisively reclaiming the $30,000 level on Monday. The positive momentum continued, leading to a substantial price surge, pushing Bitcoin to its highest price in approximately a year and a half, reaching $35,200. Speculation about the potential approval of BlackRock‘s spot Bitcoin ETF application and an intriguing ticker symbol mystery contributed to the bullish sentiment, pushing the Fear and Greed index into a deep ‘greed’ territory. Although Bitcoin retraced slightly after reaching the multi-month peak, it made a strong recovery on Thursday, testing $35,000 once again. However, it faced resistance at this level and subsequently dipped below $33,500.

BTCUSD. Source: TradingView

Despite the setback, Bitcoin swiftly bounced back and is currently trading just above $34,000. Its market capitalization has decreased to $665 billion, and its dominance in the altcoin market has slightly declined to 52.9%.

Altcoin Performance

In contrast to Bitcoin’s minor fluctuations, several altcoins have displayed noteworthy movements. TONcoin and Dogecoin are among the larger-cap altcoins that have seen daily declines of 2-3%.

On the positive side, Ethereum (ETH), Binance Coin (BNB), TRON (TRX), Polygon (MATIC), Polkadot (DOT), and Litecoin (LTC) have posted minor gains. Cardano (ADA) has experienced a 3.6% increase and is trading close to $0.3, while Chainlink (LINK) has surged by over 5% and is trading above $11. Other altcoins, such as Aptos (APT) with a 6% gain, NEAR (5.5%), Internet Computer (ICP) with 3.5%, and VeChain (VET) with 2.5%, have also seen notable price increases.

Cryptocurrency Market Overview. Source: Quantify Crypto

The total market capitalization has remained relatively stable, hovering around $1.25 trillion. This week has seen a dynamic interplay between Bitcoin’s resilience and the promising performances of various altcoins.

A prominent analyst known as CryptoCon has suggested that Bitcoin could reach $45,000 in November, aligning with a classic Bitcoin price cycle. Despite Bitcoin achieving 17-month highs, many expected a pullback. However, CryptoCon believes there is further potential for up to 30% gains from the current price levels.

Analyzing Bitcoin’s Price Behavior

Bitcoin Mid-Cycle Fibonacci Phases chart. Source: CryptoCon/X

CryptoCon based this prediction on a Fibonacci retracement model. By comparing Bitcoin’s current price behavior to previous cycles, he demonstrated that BTC/USD still has room to grow, aiming for the highest of the Fibonacci model’s five targets, which signifies a mid-cycle peak. Four of these targets have already been reached, with the fourth target being approximately 3.3% above this week’s high at $36,368. In the interim, there are what he referred to as “phases,” with November now identified as the timeline for the next phase’s completion.

The Path to $45,000

According to CryptoCon, the move to the cycle mid-top typically takes around two months after the end of phase 2. With the first month of phase 4 closing soon, the mid-top could be reached as early as November. He summarized this by stating, “A possible move above 45k by next month.”

BTC/USD chart with Fibonacci resistance levels. Source: CryptoCon/X

Continuing, CryptoCon highlighted two key resistance levels that Bitcoin bulls must overcome for the $45,000 target to materialize, both of which are situated around $36,400.

Diverging Cycle Behavior in 2023

Another analyst, Rekt Capital, pointed out a significant difference in Bitcoin’s behavior in 2023 compared to previous cycles. Normally, at this point in the four-year pattern, BTC/USD would be testing support, not resistance. Rekt Capital contrasted the current scenario with that of March 2020, when Bitcoin reached cycle lows just above $3,000 during a market crash induced by the onset of the COVID-19 pandemic.

Bitcoin price cycle comparison. Source: Rekt Capital/X

He noted that Bitcoin’s behavior in 2023 is entirely distinct from what it exhibited at the same stage in the 2019 cycle. Rekt Capital suggested that any substantial pullback could present a substantial buying opportunity within the ongoing cycle.

Bitcoin‘s market sentiment has recently climbed to heights not witnessed since its price hit a record-breaking $69,000 in mid-November 2021, as indicated by the Crypto Fear & Greed Index. The index presently stands at 72 out of a possible 100, placing it firmly within the “greed” category. This marks a six-point rise from October 24 and a substantial 16-point jump from its “neutral” position at 50 on October 18.

Boosted by BlackRock ETF Speculation

The surging market sentiment aligns with growing anticipation regarding the potential approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission. On October 24, Bitcoin experienced its most substantial single-day gain in over a year, surging by 14% in one day and briefly breaching the $35,000 mark.

Analyzing the Crypto Fear & Greed Index

The Crypto Fear & Greed Index draws on data from six critical market performance indicators, each weighted differently: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%). This comprehensive analysis generates a daily score, reflecting market sentiment.

Fear & Greed Index score. Source: Alternative.me

The last time the index reached a score of 72 was on November 14, 2021, a mere four days after Bitcoin achieved its all-time high of $69,044 on November 10, 2021, as reported by CoinGecko data. This notable resurgence in sentiment signals growing optimism in the crypto market.

Galaxy Digital’s Bullish Prediction

Following the widespread enthusiasm for spot ETFs, crypto investment firm Galaxy Digital has made a bullish forecast, suggesting that Bitcoin’s price could potentially surge by more than 74% within the first year following regulatory approval.

Fear & Greed Index scores since Feb. 2018. Source: Alternative.me

As the Crypto Fear & Greed Index climbs to pre-$69K Bitcoin all-time high levels, it underlines the current optimism and positive sentiment pervading the cryptocurrency market, driven by both recent price surges and the potential approval of significant financial instruments.

In a strong continuation of what many are calling “Uptober” Bitcoin’s price surged to a 17-month high, briefly crossing the $35,000 mark in the most recent trading session. The same bullish sentiment has also lifted several altcoins, but interestingly, Bitcoin‘s dominance in the crypto market has reached levels not seen in over two and a half years.

Bitcoin’s Impressive Rally

Just a week ago, Bitcoin faced a sudden $2,000 drop to $28,000 following a false report about the SEC approving a spot Bitcoin ETF. However, the bulls seized the moment and began driving the cryptocurrency’s value upward later in the week. This led to a significant price increase, breaking the $30,000 barrier during the weekend, and an even more remarkable surge on Monday and earlier today.

BTCUSD. Source: TradingView

BTC witnessed a tremendous leap of about $4,000, surpassing $35,000 for the first time since May 2022. Despite a slight pullback from this high, Bitcoin remains up by 11% for the day. Its market capitalization soared to $665 billion, and its dominance over other cryptocurrencies reached 53%, the highest level since the spring of 2021.

Altcoins in Green

The increased volatility in Bitcoin often extends to other altcoins, and in this instance, they followed Bitcoin’s upward trajectory. Major altcoins like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), Polkadot (DOT), and Bitcoin Cash (BCH) all experienced significant gains.

Ethereum, for example, surged by more than 8%, reaching a multi-month high of over $1,800. Other altcoins such as Binance Coin, Ripple, Solana, Tron, Toncoin, Polygon, and Litecoin also posted gains, though more modest in comparison.Several smaller-cap altcoins demonstrated impressive double-digit gains, with Mina (92%), Pepe (25%), Conflux (17%), Injective (19%), Rocket Pool (18%), and Flow (12%) standing out.

Market Cap Surges

The cumulative market capitalization of all cryptocurrencies experienced a remarkable overnight increase, surging by more than $120 billion and reaching a six-month high of over $1.27 trillion according to CoinMarketCap.

Cryptocurrency Market Overview. Source: Quantify Crypto

The cryptocurrency market continues to be a dynamic space with significant price movements and increased dominance for Bitcoin, marking an exciting period for crypto enthusiasts and investors.

Prominent cryptocurrency investment firm Grayscale has submitted a new application to the U.S. Securities and Exchange Commission (SEC) seeking approval for a spot Bitcoin exchange-traded fund (ETF). This move follows a recent D.C. circuit court decision that prompted a review of Grayscale’s application.

On October 19, Grayscale filed an S-3 form registration statement with the SEC with the intention of listing Grayscale Bitcoin Trust shares on the New York Stock Exchange (NYSE) Arca under the ticker symbol GBTC. This step is in line with Grayscale’s ongoing efforts to transform its Grayscale Bitcoin Trust into a spot Bitcoin ETF, as mentioned in an official statement by the firm.

Commitment to Collaboration

Grayscale expressed its unwavering commitment to collaborating with the SEC for the benefit of GBTC’s investors. The company acknowledged the regulatory nuances surrounding the transition and outlined that the latest S-3 registration statement is a condensed version of a standard Form S-1 statement typically used for initial public offerings of equity securities registered under the Securities Act.

GBTC’s Eligibility for Form S-3

Grayscale clarified that GBTC is eligible to employ Form S-3, a more concise filing that references SEC disclosures and reports. This eligibility arises from GBTC’s registration under the Securities Exchange Act of 1934 since January 2020 and its compliance with other form requirements.

The firm highlighted that once NYSE Arca’s 19b-4 application is approved and the SEC declares the Form S-3 as effective, Grayscale will be able to convert GBTC into an ETF and issue shares on a registered basis. Grayscale underlined its readiness to operate as an ETF upon obtaining the necessary regulatory approvals, expressing eagerness to collaborate efficiently with the SEC on these matters on behalf of GBTC’s investors.