Bitcoin (BTC) fell below $62,000 on Oct. 26 as the launch of the third United States regulated exchange-traded fund (ETF) failed to budge the sideways price action.
$61,600 support target for BTC
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting daily lows as U.S. markets opened on Oct. 26.
The latest ETF, the VanEck Bitcoin Strategy ETF (XBTF), was met with a decidedly different mood on the day as Bitcoin seemed unmoved by the prospect of fresh institutional involvement.
At the time of writing, $62,000 formed a shaky focus, which is still in line with the latest price forecasts from popular analysts.
“It would be natural price progression for BTC to dip into ~$61600 (orange level),” Rekt Capital commented alongside a fresh price chart.
“Holding there would be a sign of strength on the side of buyers.”
Expectations have remained high for all-time highs to see a retest on the back of recent movements, while research has argued that a dip as low as $50,000 would still preserve the overall bullish trajectory.
As Cointelegraph reported, even the October close is predicted to be around $63,000, giving Bitcoin room to track sideways longer before pressure increases.
PlanB, the analyst who called $63,000 the “worst-case scenario” for the monthly close, proclaimed the second leg of the 2021 bull officially in progress this week.
Altcoins due a “copy paste” of earlier bull run
Major altcoins were similarly tentative in their behavior on the day, with Ether (ETH) unmoved at $4,150.
The top ten cryptocurrencies by market cap were likewise flat over the past 24 hours — a rare episode of communal calm for an asset group that has been characterized by volatility this month.
“We know this structure from earlier on in which we’ve also had retests happening before we’ve started to continue moving,” Cointelegraph contributor Michaël van de Poppe said in his latest YouTube update.
He predicted a “copy paste” scenario of the gains from the start of 2021 at a later date, with the timeframe for this nonetheless unpredictable.
“Upside is generally higher than what you expect to be happening,” he added.
Peter Schiff Names Real Reason Behind Bitcoin Drop
Popular digital assets critic believes that measures against inflation are the real reason behind the most recent market correction
The famous Bitcoin and crypto critic, Peter Schiff, provided his Twitter subscribers with a potential reason behind one of the largest corrections on the cryptocurrency market this year.
According to Schiff, Bitcoin’s correction was tied directly to the Fed’s action toward risk assets like cryptocurrencies and some stocks. Previously, Jerome Powell hinted that tapering might happen sooner than the market expects.
Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!— Peter Schiff (@PeterSchiff) December 3, 2021
In addition to the end of the quantitative easing monetary policy, Powell has stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.
All of the actions that the Fed is currently taking are designed to control inflation, which is currently hitting highs previously observed back in the Depression era.
High-risk assets like Bitcoin and other digital assets were allegedly considered a store of value for those who wished to protect their funds from increased inflation. Schiff is a widely known critic of cryptocurrencies, and he believes they should not be considered an inflation hedge.
Whales Suddenly Move $320,000,000 in Bitcoin to a Single Destination – Here’s Where the Crypto Is Headed
Crypto whales just moved over 5,800 Bitcoin (BTC) worth more than $327 million into a single destination, according to a whale-surveilling platform.
Whale Alert tells its 1.8 million followers in a series of tweets that in the last 24 hours crypto whales are relocating thousands of BTC amid a correction that saw Bitcoin tumble to a new 30-day low of $52,416.
Five of the transactions involved shifted BTC from wallets of unknown origins to popular US-based crypto exchange Coinbase. Meanwhile, one transaction moved a large sum of Bitcoin from global crypto exchange Binance to Coinbase.
Here’s a summary of the BTC transactions:
- 530 BTC worth $30.05 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $56.69 million transferred from unknown wallet to Coinbase
- 525 BTC worth $29.53 million transferred from unknown wallet to Coinbase
- 842 BTC worth $46.98 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $54.69 million transferred from Binance to Coinbase
- 2,000 BTC worth $109.06 million transferred from unknown wallet to Coinbase
While crypto investors tend to be concerned that a massive influx of Bitcoin into the crypto exchanges might indicate downward selling pressure, insights firm Into the Block reports that centralized exchanges recorded more outflows than inflows during the past week.
The crypto intelligence platform says,
“Bitcoin recorded nearly $2 billion in net outflows from centralized exchanges, the highest level in five weeks.”
At time of writing, BTC is down nearly 7.14% on the day to $52,557.
Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover?
- Ethereum price analysis is bullish today.
- ETH/USD rejected further downside at $3,600.
- Previous support at $3,950 is currently tested as resistance.
Ethereum price analysis is bullish today as we expect further recovery to follow after a strong reaction higher from the $3,600 was seen this morning. Likely ETH/USD is set to break above the current resistance, moving to regain even more over the weekend.
The market has seen strong bearish momentum over the last 24 hours. The market leader, Bitcoin, has lost 17.23 percent, while Ethereum 14.83 percent. Meanwhile, the rest of the market has seen even more substantial losses.
Ethereum price movement in the last 24 hours: Ethereum breaks below $3,950 previous support, rejects more downside at $3,600
ETH/USD traded in a range of $3,739.39 – $4,647.29, indicating extreme volatility in the market. Trading volume has spiked by 113 percent, totaling $41.2 billion, while the total market cap trades around $465 billion, resulting in the market dominance of 21.16 percent.
ETH/USD 4-hour chart: ETH reacts back to previous lows
On the 4-hour chart, we can see the Ethereum price swiftly rejecting further downside after touching the $3,600 mark this morning.
Ethereum price action saw strong bullish momentum during the first half of the week. After establishing and retesting the new low at $3,950 last weekend, ETH/USD started to move higher on Monday quickly.
Ethereum reached $4,750 resistance by Wednesday, as bulls were eager to move towards the previous all-time high. However, more upside did not follow, leading to a reversal over the next days.
Another attempt to test upside was seen Yesterday, with the following rejection leading to a strong spike lower. Overnight, the Ethereum price broke past the previous swing low at $3,950, leading to more downside this morning. Strong reaction, preventing further downside, was seen at $3,600, with ETH/USD since moving back towards the previous low.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish today as we saw a swift drop to $3,600 met with a strong reaction higher this morning. Therefore, we assume ETH/USD has set a new swing low, and further recovery should follow over the weekend.
While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.