Throughout a whole year of work in our community we have described without much censorship the next movements that the cryptocurrency market and bitcoin would make. This article will not be the exception.
In the next few lines, we will tell you in detail all the closings that took place last month and what comes next. So, take a pencil and paper and start scoring because maybe this is the last bitcoin analysis you are going to read this year with a probability that you will generate good profits.
Lack Of Strength
Many “market gorus” there are telling you that until the end of October Bitcoin will be worth more than one hundred thousand stars. We do not see anything wrong here, but we will tell you the truth: there is still a lot of strength for that and a lot of capital injected.
In accordance with the above, we must tell you that for a true explosion in the cryptocurrency market to begin in the coming months, the total market capitalization has to break the barrier above 500 bn. At the time of writing these lines we had closed with a monthly market capitalization very close to 391 bn.
As we can see, the market as a whole remains in that support line very defined by the ichimoku cloud. On the one hand it is positive, on the other, we are simply still under tolerance for possible corrections, which as we know are influenced by news or unexpected events.
As we have said before, this is not only about prices. This goes beyond that and as you can see, studying the total capitalization of the cryptocurrency market is a first and very important aspect that we must study.
On the other hand, and seeing the sentimental parameters, we find that there is still no euphoric feeling that indicates great interest on the part of many players in wanting to throw high capital.
Not Very Positive Closure
We know that it is normal in 60% of the cases that after a price increase in Bitcoin based on one or two green candles, the following month is proceeded by a price correction or a red candle. At the time of writing this technical analysis those were the monthly closing parameters in the asset in question.
Technically we have closed the month of October testing the break of the upper Bollinger band at exactly 14012, but a failure was made, placing the price at the 0.3 support of the fibo retraction line and the current price of 13490 (critical point) and with hammer, that at the time of writing this article, indicated a trend of continuity.
We still believe in the development of Elliot wave 1 that it would trigger or end exactly at the all-time high of 20k. But for now it is worth noting that most EMAs point towards a gradual price stabilization.
Identified Critical Point
On a weekly basis we closed at a critical intercept point at the current price of 15513 and traced mainly by the downward 0.15 trend line of the Fib Speed Resistance Fan, along with the missing 0.3 fibo breakout at 13338.
Additionally, and coincidentally, there was an attempt to break the upper Bolinger band almost similar to that of the monthly chart, within our wave 5 that we had predicted would touch the mentioned trend line.
Trend and volume indicators begin to show in this graphical time that Bitcoin is entering an overbought zone, but with a very small relative force.
We emphasize then that the exact breaking point to continue with the trend is above 13850. Below you can enter a zone of tolerance to possible liquidations of positions or low investment interest.
Side Channel Not Exceeded
For the shorter daily time you breathe a different air. Bitcoin is already remitting in the overbought zone and we will soon see a crossing of the MACD moving averages warning a possible correction with tolerance to a possible distribution of capital within our sequence of Elliot 1234 waves.
Simply and with all the indicators pointing towards a price correction, in the next few days we will see how Bitcoin will build the next wave 2, which as we all know is a correction wave.
Unfortunately, we did not get even a touch of the upper line of the uptrend channel and the price was drastically skidding and support or resistance to secure it.
In case that correction happens and seeing the chart time per hours (4H) we can break the trend that could trigger the break of the EMA50 and cause the price to correct up to approximately 9% and up to more or less 11906 and touch the EMA300 .
In technical terms, that represents a healthy correction. Well, happy “12 anniversary”.
Volume Falling
On the other hand, the growth of bitcoin (BTC) in the month of October has been significant, as the price advanced by 25.6%. In this period, the cryptocurrency managed to overcome the barrier of USD 10,000 in which it has remained since the beginning of September. As of October 12, it passed $ 11,000, and then this last week it exceeded $ 13,000, as reported criptonoticias.
PayPal’s announcement to offer BTC trading on its platform has been the catalyst for this advance. This event was preceded, throughout the month, by information related to the influx of institutional investors to bitcoin. Among them are Grayscale, CoinShares, MicroStrategy, Mike Novogratz’s Galaxy Digital, and Square. This vote of confidence towards the cryptocurrency has positively influenced its value.
Ethereum is also on the rise, although it has had some ups and downs. The price ranged between $ 362 on October 1 and $ 381 at the end of the month. The value started to rise from day 8, but tends to fall in recent days. Its average monthly growth is 7%. Additionally, volumes are gradually falling.
Rising transaction costs and Ethereum congestion are factors that have affected network performance in recent months. It is expected that the work on some improvement proposals, and the launch of Ethereum 2.0 will allow to overcome this situation.
The prices of other relevant cryptocurrencies in the market showed uneven growth throughout October. Ripple’s XRP loses 1.2% in 30 days, and Ethereum Classic (ETC) depreciates by 2.9%. Only Litecoin (LTC) rises by 17% and is among the most appreciated of the month.
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