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November 02, 2021 @ 12:46 +03:00
Bitcoin has added 1.8% in the past 24 hours, returning above $61.7K. The RSI index on the first cryptocurrency’s daily charts has returned to growth, shedding last month’s mid-month oversupply.
Meanwhile, most leading altcoins add even more dynamically, with Ether strengthening by 3.3% and Dogecoin by 4.8%. The broad-based altcoin advance pushed total cryptocurrency market capitalisation to new all-time highs, surpassing $2.66 trillion.
The Cryptocurrency Fear and Greed Index dropped by a point to 73 while remaining in Greed territory. These are pretty high levels for the index. We have seen the index stabilise roughly as high in May and September before the latest two sharp drops. Nevertheless, this time around, we note the broad front of the altcoin offensive and the historic highs in cryptocurrency capitalisation – all signs that the upward movement is still gaining momentum.
We haven’t even seen an episode of FOMO yet, so the sharpest bull-run part of the rally is yet to come.
Despite Bitcoin’s very sluggish performance in recent days, what still draws attention is the apparent support on the dips in the $60K area. The same area acted as serious resistance from March to May. In our view, we are dealing with a bullish consolidation before another assault on bitcoin, which promises to make the year-end an extravaganza for the first cryptocurrency with a run to new all-time highs.
The pullback from the October highs fits within the traditional Fibonacci retracements from the rising wave from the September lows. In this scenario, a new upside wave could pass without significant corrections to $83.9K.
However, even more clearly, the latest consolidation fits within a corrective pullback to 76.4% of the rally from the July lows. In this case, the targets for BTCUSD seem to be levels just above $90K, where the first cryptocurrency could be this month.
ETHUSD is moving even more evenly, adding for the sixth week in a row and methodically finding buyers on intraday declines. Buyers in this instrument have stepped up on falls under $3K and have been regularly updating historic highs since last week.
Ether has seen a contraction in supply since last week, which plays in favour of the upside, especially attracting the attention of investors concerned about the abundant supply of money in the developed world and the huge debt load.
Looking at Ethereum from a tech analysis perspective, developing the latest growth wave opens it up to a straight and swift path to $5.4K.
The FxPro Analyst Team