Categories: Crypto Review

Bitcoin and Ethereum found buyers at key levels

Market picture

The cryptocurrency market fell at the end of last week. The capitalisation went down 3% in seven days to $2.21 trillion. However, it is worth noting the return of positive sentiment from Thursday, when buyers found Bitcoin attractive at $60K. The cryptocurrency fear and greed index is right in the middle, having risen out of the fear zone.

Last week, bitcoin successfully bounced out of the area where the 50-day moving average and the $60K round level intersect. The cryptocurrency’s 1.5% rise since the start of the day on Monday to $63.5K has brought the price back to test the 200-day moving average. A consolidation above would act as a bullish signal, indicating that the corrective pullback is over and buyers are taking over.

Ethereum is in a weaker position, approaching $2500 from below its 50-day average. Last week, the second-largest cryptocurrency found support at its 200-week moving average, as it has done so many times since mid-2012. That’s a good sign of accumulation by long-term buyers, but it’s sure to disappoint short- and medium-term speculators.

News background

The rise in Ethereum inflation to a two-year high of 0.74% p.a. calls into question the cryptocurrency’s deflationary prospects and its hard money status. This is the conclusion reached by Binance. The shift of network activity to L2 has led to a reduction in the number of transactions on the underlying and a decrease in the rate of coin burn.

According to SoSoValue, outflows from spot bitcoin-ETFs in the US last week totalled $301.5 million after three weeks of inflows. Cumulative inflows since BTC-ETFs were approved in January have fallen to $18.50bn. Ethereum-ETFs saw net outflows of $30.7m last week and have risen to $553.7m since product approval.

Binance continues to surrender its market-leading position. CCData calculated that Binance’s share of total trading volume on the CEX spot and derivatives markets fell to 36.6%, the worst since September 2020.

On 9 October, a new documentary will reveal the identity of Bitcoin creator Satoshi Nakamoto, who is hiding under a pseudonym. Politico admitted that the disclosure of Satoshi’s identity could shock the financial markets and affect the US presidential election.

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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