- Bitcoin price has sliced below a crucial inclined trend line, signaling a downswing.
- Ethereum price is likely to retest the $3,000 psychological level if investors continue to book profits.
- Ripple price inches closer to retesting the $1.09 support level, hoping to bounce off it.
Bitcoin price has slid below a vital support level and is likely to head toward the next significant barrier. While this downswing could be a minor sell-off, altcoins, including Ether and Ripple, seem to be showing no strength as they slice through critical demand areas.
Bitcoin price faces a decisive moment
Bitcoin price has respected an inclining trend line formed since July 20. However, the recent upswing failed to manifest, leading to a downswing that shattered that supportive trend line. As a result, BTC will likely head toward the $46,000 support level, the next crucial barrier.
The demand zone ranging from $43,150 to $45,791 will play a pivotal role in absorbing the selling pressure.
The buyers have a chance to kick-start an uptrend from here. If it occurs, the rally aims at the $51,000 level, a breach of which is necessary to continue the ascent to $57,000.
BTC/USDT 12-hour chart
On the other hand, if Bitcoin price fails to hold above $46,000, it is likely to dip into the demand zone, ranging from $43,150 to $45,791.
A decisive close below $43,150 will invalidate the bullish outlook and potentially trigger a downswing to $42,000.
Ethereum price teeters around $3,000 psychological level
Ethereum price has faced extreme selling pressure around $3,375, which has prevented it from rallying twice over the past two weeks. The recent attempt set up a swing high at $3,377, but instead it underwent a 9% retracement to where it currently stands. While ETH is following BTC, it might experience a steeper correction than its forebear.
Ether set up an equal high below $3,375, but the Relative Strength Index (RSI) formed a lower high, known as an exaggerated bearish divergence, further confirming a downswing.
The first support that the bears will encounter is the $3,000 psychological support, but a breach of this barrier might push ETH down to $2,893 and, in a highly bearish case, $2,742.
ETH/USDT 1-day chart
On the other hand, if Ethereum price forms a triple bottom and sees a bullish reaction off the $3,000 barrier, it could restart the upswing. Only a higher high above the $3,375 resistance level will invalidate the bearish outlook and confirm a new uptrend’s start.
Ripple price at make or break point
Ripple price is traversing a bullish pennant pattern. The remittance token rallied roughly 77% since August 9 and set up a local high at $1.35 on August 15. This ascent was followed by a consolidation that resulted in higher lows and lower highs. While the initial leg-up is considered a flagpole, the coiling up that preceded it is known as a pennant.
This setup forecasts a 43% upswing to $1.81, obtained by adding the flagpole’s height to the breakout point.
Assuming XRP price produces a decisive close above the pennant’s upper trend line at $1.27, it will confirm the start of a new uptrend.
Further supporting the uptrend is the bullish divergence formed between the price’s lower lows and the RSI’s higher lows.
XRP/USDT 6-hour chart
Regardless of the bullish pattern that XRP price is forming, a breakdown of the pennant’s lower trend line will spell disaster for the coin. A convincing close below the August 18 swing low at $1.05 will invalidate the bullish thesis and could also trigger a crash to $1.01 and the August 8 swing high at $0.84.
Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead
The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.
In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT
“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”
Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.
“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.
At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.
That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”
At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.
s are now selling ‘way more’ US Dollars to buy Bitcoin
President Nayib Bukele shared this new development on Twitter based on the data acquired from El Salvador’s in-house wallet service, Chivo. President Bukele said:
“People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs.”
He also urged media outlets to independently confirm the above information by visiting the ATMs. President Bukele further stated that Chivo has reported 24,076 remittance requests “adding up to $3,069,761.05 in one day.”
2 new Chivo Facts:
1. People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs (any media outlet can independently confirm this by visiting the ATMs).
2. Today, we received 24,076 remittances, adding up to $3,069,761.05 (in one day).— Nayib Bukele 🇸🇻 (@nayibbukele) October 16, 2021
The increase in USD to Bitcoin conversions within the jurisdiction reflects a change in investor sentiment, which initially faced resistance during adoption from the general public. Moreover, the Salvadorean government offers various subsidies for using Bitcoin such as fuel subsidies and tax exemptions.
El Salvador has installed over 200 ATMs after adopting Bitcoin as a legal tender, making it the third-largest network of crypto ATMs after the United States and Canada.
A Cointelegraph report shows that El Salvador exceeded United Kingdom’s crypto ATM count after deploying 205 crypto ATMs, mainly to facilitate local Bitcoin transactions and Bitcoin to U.S. dollars conversions.
Recently, the Salvadorean government announced to build a $4 million veterinary hospital using the profits attained during the Bitcoin bull market. According to President Bukele, the veterinary hospital will host four operating rooms, four emergency clinics, 19 offices, and a rehabilitation area: “We decided to invest a part of that money in this: a veterinary hospital for our furry friends.”
Why Bitcoin ETF Is Such A Big Deal and May Push Bitcoin Above $100k?
Amid a global regulatory crackdown on cryptocurrencies, the U.S. SEC’s approval of a Bitcoin (BTC) Exchange-Traded Fund (ETF) has come as a pleasant surprise to the Bitcoin community. The most awaited ProShares Bitcoin Strategy ETF is reportedly launching as early as Monday, October 18. This ETF is going to be traded with a ticker symbol of BITO and will track Bitcoin futures.
Bitcoin rallies towards $100K
Instead of achieving regulatory green light, Bitcoin price crossed $62K this morning with a slight correction, BTC continued to stand strong at $61.5K, at the time of reporting. The market is raging with speculation of Bitcoin crossing $100K with this ETF. The timing could not have been better as the fourth quarter has commenced the holiday season bull run, with trader bonuses flooding in as cryptocurrencies take to an upward graph. Since the beginning of October, when the potential BTC ETF began gaining mass traction, the impact on Bitcoin prices also became evident.
According to a Bloomberg report, this Bitcoin ETF will further the institutional adoption of the decentralized sphere, specifically focused on Bitcoin. “An ETF should provide greater ease-of-use for retail investors looking to ride Bitcoin’s often hair-raising ups and downs. Like securities tracking oil and gold, it will change hands on relatively familiar U.S. stock-market venues, rather than in cryptocurrency or futures exchanges whose workings are imposing to some users.”
Regulatory approval can make or break a token
The frequently validated fact that regulatory approval radically helps the growth of cryptocurrencies, despite it being a decentralized and unregulated market, continues to gain credibility. XRP is one of the most prominent examples of how drowning in a regulatory puddle may keep certain tokens into a bear rut, while the rest of the industry leaps into the bullish phase. Due to the ongoing XRP lawsuit against Ripple, the XRP community continues to suffer as the fourth quarter has not helped XRP so far. The community blames the SEC for stretching the lawsuit intentionally so that XRP skips this bull run.