Solana Stays Close To All-Time Highs

Solana Stays Strong While Bitcoin and Ethereum Decline

Solana made an attempt to settle above all-time highs today despite the pullback in leading cryptocurrencies. Bitcoin is currently trying to settle below the psychologically important $60,000 level. In case this attempt is successful, it will gain additional downside momentum and move towards the 20 EMA at $57,700 which will be bearish for the whole crypto market. Meanwhile, Ethereum managed to get back below the $4,000 level and is trying to settle below $3,900.

It remains to be seen whether the sell-off in biggest coins will have any notable impact on Solana as the latter’s upside momentum is very strong. According to CoinMarketCap, the recent rally has put Solana into the top-6 cryptocurrencies by market capitalization with a market cap of about $61 billion at the time of writing.

Technical Analysis

solana october 22 2021

Solana managed to settle above the $200 level and is currently trying to settle above the resistance at $216. Trading volume has increased materially in recent days, but it has not reached peaks that were seen back in September when Solana was trading near current levels. Thus, Solana may enjoy even more active trading which could push it to new highs.

It should be noted that RSI has just entered into the overbought territory, but it remains well below highs that were seen back in August – September, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case Solana manages to settle above $216, it will gain additional upside momentum and move into the uncharted territory.

On the support side, the previous resistance near $200 will serve as the first support level for Solana. A move below this level will push Solana towards the support at $178. In case Solana declines below $178, it will head towards the next support which is located at the 20 EMA at $164.

For a look at all of today’s economic events, check out our economic calendar.

Walmart Is Entering The Crypto World 200 Bitcoin ATMs With Plans To Add More

The cryptocurrency space has welcomed numerous leading companies over the past few months, and Walmart has now joined the list.

Walmart Partners With Coinstar and CoinMe

Walmart, the leading retailer in the United States, has partnered with coin-cashing machine company Coinstar and crypto-cash exchange CoinMe as it enters the cryptocurrency space. The retailer has installed 200 Bitcoin ATMs at its various locations across the United States.

According to a Bloomberg report, the installation of the Bitcoin ATMs at Walmart stores will allow its customers to buy bitcoins at its various locations across the United States. Walmart intends to install at over 8,000 locations in the United States over the coming months.

In an interview with Bloomberg, the Chief strategy officer and head of research at BitOoda, Sam Doctor, said although Bitcoin ATMs are already popular in the United States, Walmart wants to make them available to more people.

He said, “Walmart expands Bitcoin access to more people, though, and gives it further legitimacy among skeptics, should they roll it out beyond an initial pilot.” Data obtained from Coin ATM Radar showed that there are currently more than 25,000 Bitcoin ATMs at service stations and grocery stores across the United States. Coinstar currently operates more than 4,400 kiosks that support Bitcoin purchases in 33 states of the country.

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BTC/USD chart. Source: FXEMPIRE

Bitcoin Cools Off Following Its Recent All-Time High

Bitcoin reached a new all-time high above $67,000 on Tuesday. The cryptocurrency has been rallying since the start of the month and topped the $67k level 48 hours ago. However, BTC has since cooled down following the rally.

At the time of writing, BTC is down by 2.1% over the past 24 hours and is trading just above the $63,300 level. The coin is correcting following its recent rally but could resume its upward movement if the bulls regain control of the market.

Ethereum Stays Strong Ahead Of The Weekend

Ethereum Tests Resistance At $4,150

Ethereum continues its attempts to settle above the resistance level at $4,150 while Bitcoin is moving higher after yesterday’s pullback.

The world’s leading cryptocurrency has recently made at attempt to settle below the $62,000 level but failed to develop sufficient downside momentum and rebounded towards $63,000. In case Bitcoin manages to settle above $63,000, it will head towards the recent highs at $67,000 which will be bullish for the whole crypto market, including Ethereum.

Other cryptocurrencies are also moving higher. XRP managed to settle above $1.10 and is moving towards $1.11 while Dogecoin has recently managed to climb back above the resistance at $0.2450.

Technical Analysis

ethereum october 22 2021

Ethereum is currently trying to settle above the resistance level which is located at $4,150. RSI has moved a bit closer to the overbought territory but there is enough room to develop additional upside momentum in case the right catalysts emerge.

If Ethereum manages to get above the resistance level at $4,150, it will move towards the next resistance level near $4,400. Yesterday, Ethereum made an attempt to get above this level but faced significant resistance. This is not surprising as Ethereum is trying to get above all-time highs, and some traders decide to take profits off the table. In case Ethereum manages to settle above $4,400, it will gain additional upside momentum and move to new highs.

On the support side, the nearest support level for Ethereum is located at $4,000. In case Ethereum declines below this level, it will head towards the next support at $3,800. A successful test of this support level will open the way to the test of the support at the 20 EMA at $3,650. If Ethereum declines below the support at the 20 EMA, it will gain additional downside momentum and move towards the next support level which is located at the 50 EMA at $3,360.

For a look at all of today’s economic events, check out our economic calendar.

The Crypto Daily – Movers and Shakers – October 22nd, 2021

Bitcoin, BTC to USD, slid by 5.76% on Thursday. Reversing a 2.73% gain from Wednesday, Bitcoin ended the day at $62,219.5.

A mixed start to the day saw Bitcoin rise to a late morning intraday high $66,643.0 before hitting reverse.

Falling short of the first major resistance level at $67.474, Bitcoin slid to a mid-afternoon intraday low $61,855.0.

The sell-off saw Bitcoin fall through the first major support level at $64,051 and the second major support level at $62,082.

Finding late support, however, Bitcoin broke back through the second major support level to end the day at $62,200 levels.

The near-term bullish trend remained intact, supported the latest return to $66,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Chainlink (+2.88%) and Polkadot (+2.35%) avoided the red on the day.

It was a bearish day for the rest of the majors, however.

Binance Coin slid by 6.06% to lead the way down, with Litecoin (-5.07%) and Ripple’s XRP (-5.04%) also struggling.

Bitcoin Cash SV (-3.45%), Cardano’s ADA (-2.39%), Crypto.com Coin (-2.00%), and Ethereum (-2.59%) saw relatively modest losses, however.

In the current week, the crypto total market fell to a Monday low $2,386bn before rising to a Thursday high $2,741bn. At the time of writing, the total market cap stood at $2,563bn.

Bitcoin’s dominance rose to a Wednesday high 47.72% before falling to a Thursday low 45.84%. At the time of writing, Bitcoin’s dominance stood at 45.93%.

This Morning

At the time of writing, Bitcoin was up by 0.33% to $62,426.0. A mixed start to the day saw Bitcoin fall to an early morning low $62,141.0 before rising to a high $62,426.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bullish start to the day.

At the time of writing, Chainlink was up by 0.80% to lead the way.

BTCUSD 221021 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the $63,573 pivot to bring the first major resistance level at $65,290 into play.

Support from the broader market would be needed for Bitcoin to break back through to $65,000 levels.

Barring a broad-based crypto rally, the first major resistance level and Thursday’s high $66,643.0 would likely cap the upside.

In the event of another breakout, Bitcoin could test resistance at $70,000 levels before any pullback. The second major resistance level sits at $68,361.

Failure to move through the $63,573 would bring the first major support level at $60,502 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$60,000 levels, however. The second major support level sits at $58,785.

Gold Retraces Modestly as Dollar Strength Dampens any Daily Gains

As of 4:45 PM EDT gold futures basis most active December 2021 contract is down two dollars, or -0.11% and is fixed at $1782.10. Concurrently spot or Forex gold is currently jumping between fractional losses and fractional gains. Currently spot gold is fixed at $1,782.55 approximately +0.05% or one dollar on the day.

gold oct 21

Considering that the dollar is currently up just over ¼% it is clear that any decline today can be directly attributed to a stronger dollar. Currently the dollar index is up 25 points, or +0.27%, and fixed at 93.785.

Looking at a daily candlestick chart we can see that gold is currently above its opening price. Gold opened trading at $1782.50 and traded to a high of $1790.40 and a low of $1776.80. That means when compared to yesterday’s trading range gold has had a higher high and a higher low, although it closed just below Wednesday’s closing price.

Gold did not have much competition from either U.S. stocks or cryptocurrencies. In the case of the cryptocurrencies, after hitting an all-time high yesterday Bitcoin futures declined by almost 6% ($3,980) and are fixed at $62,685.

After launching the first Bitcoin futures ETF yesterday, ProShares Bitcoin strategy (BITO) declined by 5.61% with the ETF currently priced at $40.64 per share.

U.S. equities were mixed with both the NASDAQ Composite and Standard & Poor’s yielding moderate gains today. The NASDAQ gained +0.62%, and after factoring in today’s gain of 94.0217 is currently fixed at 15,215.70. The Standard & Poor’s 500 gained 13.59 points, or +0.30%, and is currently fixed at 4549.78. The Dow Jones Industrial Average closed, in essence, unchanged with a decline of -0.02%, or a loss of 6.26 points, and is fixed at 35,603.08.

According to Reuters News, today’s fractional decline in gold prices was a result of choppy trading as the precious metal continues to be pressured by rising yields on U.S. bonds. However, gold prices were supported by reports about China that indicated that they are also experiencing upticks and inflation and an extremely troubled real estate(housing) market.

Reuters also spoke to Phillip Streible, Chief Market Strategist at Blue Line Futures in Chicago who said, “The Fed is going to taper and yields are going to make an all-time high so there is no reason for people to park their money in a nonyielding safety asset like gold.”

They also spoke about the double-edged sword that is inflation, Federal Reserve actions as inflation rises (a bullish component for gold prices) reduce stimulus coupled with higher interest rates which will reflect higher yields on U.S. government debt instruments will raise the opportunity cost of holding nonyielding bullion (a bearish component for gold prices).

It seems for the moment until the Federal Reserve convenes for its next FOMC meeting on November 2, gold will continue to trade in a range-bound manner reflecting the dynamic crosscurrents. Dollar strength and higher yields in U.S. debt will continue to pressure gold lower, and inflationary concerns will continue to be supportive of gold prices.

For those who would like more information, simply use this link.

Wishing you, as always, good trading and good health,

Gary Wagner

 

Bitcoin Falls From Peak, U.S. ETF Support Questioned

The world’s largest cryptocurrency was down 4.35% at $63,122.78, at 2:10 p.m. Eastern time, after hitting a record $67,016 on Wednesday.

Earlier, just after 7:30 a.m., Bitcoin’s price briefly plunged around 87% to $8,200, but only on Binance’s U.S. exchange. The flashcrash seemed to have been caused by a bug in an institutional trader’s algorithm, a spokesperson for Binance U.S. said.

“We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved,” the spokesperson said.

Bitcoin’s recent rally – six-months after its previous top of $64,895 – was fueled by the debut of the ProShares Bitcoin Strategy ETF <BITO.K>.

A dozen other futures-based bitcoin ETFs could launch in the coming months, with The Valkyrie Bitcoin Strategy ETF set to begin trading on Friday under the ticker BTF. The VanEck Bitcoin Strategy ETF expected to begin trading next week under the ticker XBTF.

Investors have bet the long-awaited launch of bitcoin ETFs will lead to greater investment from both retail and institutional investors.

Yet analysts at J.P. Morgan voiced doubt over how long-lasting the boost to bitcoin’s price from the ProShares ETF, which trades under the ticker BITO, would be.

“Will the launch of BITO by itself bring significantly more fresh capital into bitcoin? We doubt it given the multitude of investment choices bitcoin investors already have,” they wrote in a note.

“The bulls are seeing this ETF as a new investment vehicle that would open the avenue for fresh capital to enter bitcoin markets. The bears are seeing the new ETF as only incremental addition to an already crowded space of bitcoin investment vehicles.”

Some players see inflation risks, rather than new investment products, as driving bitcoin’s rally.

Still, others predicted that bitcoin’s latest peak could lead to further gains this year, but not without headwinds.

“Bitcoin’s bullish momentum could last a lot longer, but the global energy crisis should not be ignored,” said Edward Moya, senior market analyst at Oanda. “Cryptocurrency energy consumption could draw scrutiny from many governments that are battling energy shortfalls.”

If the current momentum continues, bitcoin could make a run towards the $75,000 region, but a “greenlight towards $100,000 seems difficult until the global energy crisis is in the rear-view mirror,” he said.

Ether, the world’s second largest cryptocurrency, rose 1.87% to $4,090.30 – close to its all-time high of $4,380, hit in May.

(Reporting by John McCrank in New York and Tom Wilson in London; Editing by Edwina Gibbs, William Maclean and Alison Williams)

One Last Pullback to $53K Before Bitcoin Targets $90K?

Two weeks ago, see here, when Bitcoin (BTC) was trading at $55K, I concluded, “the preferred view remains BTC is now in a new bull run to new all-time highs, with an ideal target of $90K+“. However, I was looking for to rally to top out at around $57-60K, followed by a drop to approximately $51K and then another rally to the long-term target of $90K+, which btw will still not be “THE TOP.”

Fast forward, BTC reached $66980 yesterday and is seeing a solid reversal today. Thus my (red) intermediate wave-i top target was a bit off as quite the margin exceeded it. The exceedance is, based on the “Elliott Wave Principle (EWP) waves, because the cryptocurrency experienced a subdividing, 3rd and 5th wave. See Figure 1 below.

Figure 1. Bitcoin daily charts with detailed EWP count and technical indicators.

Such extensions can always happen, must be anticipated, but cannot be known with certainty beforehand. They fall under the good old “in bull markets upside surprises and downside disappoints” theme. How to trade that? Don’t sell your entire position in anticipation of a pullback, but raise stops and maybe take some chips off the table, but not all. For example, my crypto trading alert bot service does just that. For instance, it went long on October 1 at $48165. It sold ¼ positions in three batches on the way up, and now its subscribers to it are still only holding ¼ of the original position, with a stop at $49502 and depending on the trading system signals, this easy trade netted so far an easy +18%.

A break below Sunday’s $59016 low is needed to confirm wave-ii to ideally $53K.

Figure 1 shows several technical indicators, and one of the most important ones is IMHO the Money Flow Indicator (MFI14) at the bottom of the page. It has been highly overbought over the last several days, meaning everyone has bought BTC. And when everybody has bought, only selling is left. In addition, the Crypto Fear & Greed Index sits currently at 84: extreme greed.

Thus, some selling would be typical to take care of these powerful Bullish readings. Besides, such strong MFI readings tell there’s plenty of liquidity going into the cryptocurrency, and liquidity is what drives markets. In over 9 out of 10 occasions where the MFI14 gets this overbought, we can expect a pullback and then higher prices again.

These readings fit with the preferred EWP count that wave-ii of wave-3 of wave-V of Cycle-3 is about to commence. See figure 1 above. Since (black) major wave-2 did a 50% retrace of wave-1, I (logically?!) expect wave-ii to also retrace about 50% of wave-i in the coming days. That will bring BTC’s price back to around $53K, which is horizontal support. From around that price level, I expect wave-iii of wave-3 to start targeting $90K+ideally. My premium crypto trading members know the exact target zones, even for all of wave-3 and Cycle-3. A break below Sunday’s $59016 low is needed to confirm wave-ii to ideally $53K is underway.

Bottom line: Bitcoin’s rally to yesterday’s all-time high (ATH) surpassed my initial anticipation of a local top around $57-60K as the 3rd and 5th wave of the larger wave-i I was tracking extended. However, the anticipated pattern of a “rally, pullback, rally” remains intact.

The first “rally” came and likely went, and now I anticipate the “pullback.” Money flow and sentiment are extremely overbought/bullish, suggesting some selling should be expected. I expect this pullback to reach around $53K+/-2K before the rally to $90K starts. BTC will have to break below $48K to begin to suggest something much more bearish is afoot, whereas continued ATHs will mean the mother of all cryptos is already in wave-iii of 3 and ready to target $78K more directly. Neither option, albeit possible, is my preferred path.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Elliott Wave Cycles Approaching Resistance

However, keep in mind that we are approaching some important resistance in the Crypto market, so bigger decline is not excluded.

Bitcoin, BTCUSD may have now completed wave 3, so new three-wave a-b-c setback in wave 4 can be already in progress with ideal support in the 61k-58k zone before a continuation higher for wave 5 towards 68k-70k area. However, any bigger and stronger decline below 58k would be a serious signal that 5th wave is already in place labeled as Alternate count.

Bitcoin 1h Elliott Wave Analysis

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Bitcoin hit all-time highs, so we will have to be very careful at this stage, mainly because of a potential strong resistance on a daily chart, either as part of wave B of a flat or wave 5 of an impulse. However, in the 4-hour chart, there’s still a chance for more upside to complete a five-wave cycle, as current impulse looks like a wave 3. So, if we see slow corrective pullback, then ideal support for wave 4 would be in the 62k-59k zone, but any sharp and impulsive sell-off towards 50k would be signal for a completed 5th wave labeled as Alternate count.

Bitcoin 4h Elliott Wave Analysis

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Billionaire Venture Capitalist Says ‘Go Long’ on Bitcoin

Now that bitcoin has made a fresh all-time high of above $66,000, investors are wondering what comes next. Crypto bulls are convinced that the current market cycle is far from over and there are more gains to come right around the corner. The catalysts are certainly in place, with major institutions like Pimco now coming off the sidelines and into cryptocurrencies. Fintech billionaire Peter Thiel is also bullish on the bitcoin price.

Thiel, a venture capitalist who co-founded PayPal, has a history of spotting technology gems. On bitcoin, however, even he is surprised on how far it has come. Thiel was featured in a fireside chat as part of an event hosted by Lincoln Network in Miami, Fla.

‘Underinvested’ in Bitcoin

Bitcoin was the elephant in the room at the event, given its ascent to a new record, and the tech entrepreneur seemingly wishes he owned more. Thiel is cited by Bloomberg as stating,

“You’re supposed to just buy bitcoin. I feel like I’ve been underinvested in it.”

Thiel held back from owning more bitcoin for the same reason many investors may do the same — he believed that the cat was already out of the bag. Now he is second guessing his assumption, saying, “Maybe it still is enough of a secret” and noting,

“I think the answers are still to go long.”

As for whether the price will continue to rise, Thiel could only conclude that the answer is “maybe.” Nonetheless, he is quick to point out that bitcoin demand is a sure sign that central banks are facing a “complete bankruptcy moment.”

Institutional Adoption

Bitcoin’s bull run has also prompted more institutions to come off the sidelines on crypto. Most recently, fixed income asset management giant Pimco, which oversees more than $2 trillion in AUM, is poised to allocate capital to cryptocurrencies including bitcoin.

In an interview with CNBC, Pimco CIO Daniel Ivascyn revealed that the firm could no longer ignore “an area that is rapidly growing.” While the firm is taking “baby steps,” it is “looking at potentially trading certain cryptocurrencies,” according to Ivascyn.

Institutional adoption is one of the major catalysts for the bitcoin price, especially with inflation on the rise. Meanwhile, the price of gold, which is the rival store-of-value asset to bitcoin, is in the doldrums, having fallen 7% in the last 12-month period.

Bitcoin Hits A New All-Time High Above $67k, Eyes The $70k Level Next

The world’s leading cryptocurrency has reached a new all-time high for the first time in months and could be gearing up to surge higher over the coming days.

Bitcoin Finally Sets A New All-Time High Above $67k

Bitcoin has had an extraordinary performance since the start of the month. The leading cryptocurrency has seen its price rise by more than 30% over the past three weeks. Yesterday, the leading cryptocurrency reached another milestone after setting a new all-time high above $67k.

According to the data obtained from Coingecko, Bitcoin reached a new all-time high at $67,276.79. This new achievement came as BTC’s price rose by more than 7% yesterday. It is the first time Bitcoin is reaching a new all-time high level since April 2021.

Following the rally, Bitcoin’s market cap surged to nearly $1.4 trillion. Bitcoin’s price has slightly retreated, and it is now trading around $66k per coin. With a market cap of $1.2 trillion, Bitcoin has a market dominance level of 44.5%.

btc
BTC/USD chart. Source: FXEMPIRE

BTC wasn’t the only coin that has been rallying since yesterday. Ether crossed the $4,300 level and is heading towards a new all-time high if it can maintain its current momentum. Thanks to the performance of other cryptocurrencies, the total cryptocurrency market cap is now approaching $2.8 trillion

Bitcoin Eyes The $70k Level

Following its latest rally, BTC could be looking to surge higher in the coming hours and days. If Bitcoin can build on its current momentum, then it could touch the $70k level over the next few days.

The ProShares Bitcoin futures ETF coming to the market helped boost Bitcoin’s performance. The VanEck Bitcoin futures ETF is coming in the next few days, and that could provide a further boost for Bitcoin in the short term.

Many market experts and analysts expect Bitcoin’s price to reach the $100k level before the end of the year. BTC’s price would need to rise by more than 40% from its current price to attain that level.

Bitcoin Price Prediction – Bitcoin Bulls Eye $70,000… Avoiding sub-$65,500 Key, However

After a mixed day for Bitcoin and the broader market on Wednesday, it’s been a broadly bullish morning for the crypto market.

At the time of writing, Bitcoin, BTC to USD, was up by 0.19% to $66,145.6.

A mixed start to the day saw Bitcoin fall to a mid-morning low $64,033.0 before making a move.

Finding support at the first major support level at $64,051, Bitcoin rose to a late morning intraday high $66,643.0.

Falling well short of the first major resistance level at $67,474, however, Bitcoin fell back to sub-$66,000 levels.

The Rest of the Pack

Binance Coin bucked the morning trend, falling by 1.33%.

For the rest of the majors, it’s been a bullish morning, however.

At the time of writing, Cardano’s ADA was up by 4.09% to lead the way, with Chainlink (+3.89%), Crypto.com Coin (+3.08) and Ethereum (+3.12%) also finding strong support.

Bitcoin Cash SV (+0.17%), Litecoin (+1.22%), Polkadot (+0.30%), and Ripple’s XRP (+0.78%) trailed the front runners, however.

Through the early hours, the crypto total market cap fell to a mid-morning low $2,611bn before rising to a high $2,692bn. At the time of writing, the total market cap stood at $2,685bn.

Bitcoin’s dominance fell from an early morning high 46.86% to an early morning low 46.24%. At the time of writing, Bitcoin’s dominance stood at 46.43%.

For the Afternoon Ahead

Bitcoin would need to avoid a fall back through the $65,505 pivot to take a run at the first major resistance level at $67,474.

Support from the broader market will be needed, however, for Bitcoin to breakout from Wednesday’s high $66,958.0.

Barring a broad-based crypto rally, the first major resistance level would likely cap any upside.

In the event of another extended rally through the afternoon, Bitcoin could test resistance at $70,000 levels before any pullback. The second major resistance level sits at $68,928.

Bitcoin would need plenty of support, however, to break out from yesterday’s all-time high $66,958.0.

A fall back through the $65,505 pivot would bring the first major support level at $64,051 back into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of the second major support level at $62,082.

Looking beyond the support and resistance levels, we saw the 50 EMA pull further away from the 100 and 200 EMAs through the morning.

We also saw the 100 EMA pull further away from the 200 EMA, delivering additional support.

Through the 2nd half of the day, a widening of the 50 EMA from the 100 would bring $70,000 levels into play.

Key through the late morning and early afternoon, however, would be to avoid a fall back through the $65,505 pivot.

Direct Cryptocurrency Payments Will Serve as a Boost for the Financial Industry

According to research conducted by the Capgemini Research Institute, nearly 45% of customers around the world will use cryptocurrencies for payments within the next 1-2 years, due to the growing need for cross-border payments. At the moment, less than 10% of global consumers use cryptocurrencies for payments.

While the legal status of cryptocurrencies varies from country to country, the fact that they can be recognized as legal tender (as El Salvador’s example demonstrates) shows that there is a place for them to be found in payments and that people can also use them to conduct their purchases.

While Bitcoin is not the best crypto asset for payments going forward, there are other options available which can be used for payments. Assets with lightning-quick transaction speeds, like Ripple, Solana, EOS, Neo, Cardano and Ethereum (following the rollout of Ethereum 2.0), for example.

Advantages of crypto payments

We have already seen El Salvador implement Bitcoin as a legal tender. Its advantages include censorship-resistance, quick and cheap payments and an anti-inflationary system. Only time will tell if El Salvador’s move bears fruit. If it does, we could see other countries follow suit. It must be noted that Bitcoin’s initial goal was to be used for payments – its current appeal is more as an investment instrument but this could soon change.

When it comes to payments, efficiency is a priority. A cross-border payment in crypto can take minutes, or even seconds to clear – as opposed to several days of clearance time (potentially) with fiat transfers. Currently, payments platforms and financial institutions charge colossal fees for international transactions and take significant time to process.

In today’s increasingly digital age, speed is of the essence when it comes to the completion of any task, of course in a streamlined manner. Needless to say, the integration of crypto assets into global finance will make local and international payments easy. Also, functionalities can be built into crypto transactions in the form of smart contracts.

For example, you could send pocket money to your child who is studying overseas and program the money to not be spent on junk food. Automation of payments based on pre-fixed conditions is also a possibility. Of course, the security that comes with blockchain technology is another advantage of incorporating crypto payments globally.

With a market cap of $2.5 trillion at the time of writing, crypto tokens have become an asset class in their own right, and the gap between the crypto and fiat spheres is gradually closing.

What is the future for this sector?

We are approaching a future where cross-border payments can be completed with a single, quick crypto transaction. The real benefit of crypto payments is being able to use cryptocurrencies in our day-to-day lives. While receiving payment in crypto and converting to fiat is still a quick process, the fees get piled on – convenience and savings hold key importance here.

The future for this sector is indeed bright but we need businesses all over the world to accept crypto payments to harness their true potential. We need a digital world where crypto payments for all kinds of goods can be made with a single click. At the moment, over 15,000 businesses globally accept crypto payments. These include Microsoft, PayPal, Overstock, Whole Foods, Etsy, Starbucks, McDonald’s, Newegg, Home Depot, Rakuten and Twitch – the list goes on.

Once crypto payments become mainstream, I expect players in the industry to build infrastructure to add to the capabilities of crypto assets and facilitate direct crypto payments as I mentioned in the previous section. CBDCs are a way forward as well and will slowly but surely transform global finance.

The lack of regulation is a hindrance to growth at this moment and the adoption of CBDCs could see cryptocurrencies gain more importance and traction rapidly. Many countries do not have taxation rules in place at the moment and do not know how to treat crypto assets. And since they cannot understand crypto assets, they refuse to acknowledge their importance.

This is why I feel 2022 could be a turning point for the crypto industry in terms of global finance, with CBDCs likely to receive a huge global push. China is leading the way at the moment and countries like the UK and India are not too far behind.

Conclusion

The crypto industry will continue to develop and the demand for crypto assets will rise. Global crypto adoption for payments will not only add ease to cross-border payments at low costs but also allow us access to programmable and automatable payments.

China will play a leading role in global crypto infrastructure in the near future, owing to its progress with CBDC technology. The growth of India as a crypto-using nation is heartening to see as well – India has the most active crypto users at the time of writing.

Financial institutions are seeing cryptocurrencies in brighter light and their acceptance of digital currencies is key to the future growth of the industry. In the end, the goal is not to eradicate traditional finance but enhance it.

Greg Waisman, co-founder and COO of the global payments network Mercuryo.

Ethereum Looks Ready To Test All-Time Highs

Ethereum Stays Strong While Bitcoin Declines From Record Highs

Ethereum is currently trying to settle above the resistance at $4,165 while Bitcoin pulls back from record highs.

The world’s leading cryptocurrency has recently made an attempt to settle above the $67,000 but failed to develop sufficient upside momentum and pulled back. Bitcoin’s RSI remains in the overbought territory, and the risks of a pullback remain at high levels. However, the current upside momentum is very strong so Bitcoin will have a good chance to get to the test of the psychologically important $70,000 level in case it manages to settle above $67,000. This move would be bullish for the whole crypto market, including Ethereum.

The leading coins, Bitcoin and Ethereum, attracted significant interest in recent trading sessions, and it looks that crypto traders are currently focused on the big names which is bullish for Ethereum.

Technical Analysis

ethereum october 21 2021

 

Ethereum is currently testing the resistance level at $4,150. RSI is close to the overbought territory, but it remains far below levels that were reached back in May when Ethereum visited current price levels. Thus, there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case Ethereum manages to settle above the resistance at $4,150, it will head towards the next resistance level which is located near the $4,400 level. A move above this level will attract more speculative traders and boost Ethereum to new highs.

On the support side, a move below $4,150 will push Ethereum towards the support level which is located at $4,000. A successful test of this level will open the way to the test of the next support at $3,800. If Ethereum gets below $3,800, it will head towards the support at the 20 EMA at $3,600. A move below the 20 EMA will push Ethereum towards the 50 EMA at $3,335.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Slip, Yen Jumps as Evergrande Jitters Return

The more cautious tone looked set to take hold globally as well, with European futures and FTSE futures down 0.3% and S&P 500 futures dipping 0.2%.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% after briefly touching a one-month high. Japan’s Nikkei fell 1.5% as the safe-haven yen rose broadly.

Commodities also eased, with Brent crude futures down 0.2% after touching a three-year top and Chinese thermal coal futures> extending a pullback in the wake of signals that Beijing will intervene to cool prices.

“The U.S. stock market has gone up for six days in a row, bitcoin’s made a record and the U.S. bond market is calm. On the surface it looks benign,” said Andrew Ticehurst, a rates strategist at Nomura in Sydney.

“But below the surface we are uncomfortable about a number of things,” he added, chiefly the slowdown in China’s economy seen in data earlier this week, and concerns about potential fallout from Evergrande’s troubles.

China Evergrande Group has secured an extension on one defaulted bond, financial news provider REDD reported on Thursday, as the company scrambles for cash before a grace period for a dollar bond coupon payment expires on Saturday.

Late on Wednesday Evergrande said a deal to sell a $2.6 billion stake in its property services unit failed and its shares fell 12% in Hong Kong on Thursday.

Shares in rival developers drew support thanks to reassurance from a number of top Chinese officials that the trouble in the sector would not be allowed to escalate into a full-blown crisis, but global investors remain nervous. [.SS]

“We may see more Evergrande headlines weighing on China markets into the end of the week as the first 30-day grace period on unpaid offshore bonds approaches,” said Jeffrey Halley, analyst at broker OANDA.

YEN HALTS SLIDE

Wall Street had offered a positive lead after earnings helped the Dow Jones touch an all-time high and left the S&P 500 within a whisker of its record closing high.

The VIX volatility index, sometimes referred to as Wall Street’s “fear gauge”, dropped to a two-month low.

But a soft finish on the Nasdaq flowed through to tech-stock selling in Tokyo and in Hong Kong, where the Hang Seng fell 0.8%.

Longer-dated Treasury yields steadied after rising with inflation and growth expectations on Wednesday, with the benchmark 10-year yield at 1.6568%, just below the previous day’s five-month high of 1.6730%.

Investors have figured that surging energy prices and tightening job markets will pressure policymakers in the United States and elsewhere to raise interest rates before long, but stocks have scarcely reacted to shifts in rates pricing.

Fed funds futures have priced a 25 basis point U.S. rate hike in the third quarter of 2022 while eurodollar markets expect higher rates as soon as the second quarter.

“In our view, the dollar and yen face upside risks if inflation concerns spark a sharp tightening in global short-term interest rates and a sharp pullback in equity markets,” said Commonwealth Bank of Australia currency analyst Carol Kong.

The yen rose 0.3% against to 114.06 per dollar on Friday and steadied against other currencies after a long slide. The Australian dollar dipped 0.2% to $0.7501 after touching a three-month high.

China’s yuan , hovered at it strongest level in four months against the greenback, after the central bank set its official midpoint rate on Thursday below 6.4 per dollar for first time since June.

Investors are growing nervous over authorities’ apparent absence of concern about the yuan’s recent ascent, which has also taken it to its strongest level in six years against the currencies of China’s major trading partners.

Bitcoin, which hit a record on Wednesday in the wake of the U.S. listing of a futures-based exchange traded fund, eased from its peak to $64,951, while fellow cryptocurrency ether hit a five-month top of $4,243.

(Reporting by Tom Westbrook in Singapore; Editing by Sam Holmes and Kim Coghill)

Wave Hello to your New ATH in Bitcoin

Pro Shares Bitcoin Strategy ETF trades under the ticker symbol BITO and tracks the price of Bitcoin futures (BTC). BITO started its first trading session at $40.88 per share and closed almost $2 higher at $41.94, equating to a 4.85% increase on the day matching the gains seen in Bitcoin.

Yesterday we saw the highest close on record for BTC at $64,500 breaking above resistance that resided at $62,000, and today we officially made a new all-time high. As of 4:20 PM EDT, BTC futures are trading up almost 3% or $1,800 at $66,540. Ethereum also played catch up today currently up 7% back above $4,000 for the second time. At $4,080 ETH is still 6% below its own all-time high but has matched Bitcoins weekly gain with both seeing a 15% rise week over week. With Bitcoin now in price discovery mode, where can we expect to see this rally conclude?

The best way to forecast a market in new territory is with Elliot wave principle and its use of Fibonacci extensions.

In the weekly candlestick chart of BTC shown below I have drawn in the cycle that first took us above $60k that began at the end of 2020, the A, B, C correction that followed from mid-March to mid-July, and the current bull count we are presently in. I have added to Fib. Extensions the first one in black is just a comparison of the third wave of the previous cycle to the current third wave we are currently in. the second extension in blue is relevant to wave theory. It is drawn to compare the recent third wave to the first wave of this cycle.

10 20 Chart 1

The first comparison tells us that if this third wave happens to be equal to the last cycles third wave or have a 1 to1 relationship, it would conclude at $68,975. Waves from one cycle do not tend to be relevant to the next cycle so this is more of a reference point than a target price point. The second extension in blue is relevant to the current forecast because when we compare wave 1 to wave three, there are rules and general guidelines we can use to forecast.

A rule that governs R.N. Elliot’s wave principle is that the third wave can never be the shortest of the three impulse waves (1, 3, 5). Typically, a third wave will have a length between equal length (1 to 1) and 1.618 that of wave 1. The rally that brought us to $65k in May (the first wave count on the chart) followed this guideline although it did not go much past a 1 to 1 relationship with wave 1. In our current cycle or wave count it surpassed the 1 to 1 ratio which equates to $63,995 in yesterday’s historic price action and the low of today matched up very closely to that number. Wave principle predicts that a likely conclusion point for this wave three rally would be at $78,770, a 1.618 relationship to wave 1. However, this is not a rule and third waves can go to up to 2.618 even 4.618 the length of wave 1, or conclude just at or above a 1 to 1 which would put us in our corrective wave 4. Regardless of whether it is wave 3 or wave 5 that gets us there, this rally will likely conclude somewhere in the area between $75,000 and $85,000.

10 20 chart 2

MicroStrategy Shares Rise as Bitcoin Bet Pays Off

Enterprise software company MicroStrategy was a first-mover to adopt bitcoin on its balance sheet. The company made the move over a year ago, and it has paid off in spades as its bitcoin investment has ballooned in size.

Now that the bitcoin price has attained a fresh all-time high of more than $65,000, MicroStrategy’s stock is rallying too. Shares of MicroStrategy increased 4.2% on Wednesday to $758. So far this year, the stock has nearly doubled. And over the past 12-month period, the stock has climbed more than 300%. In the same period, the bitcoin price has soared over 400%.

MicroStrategy’s stock reclaimed some lost ground after falling on Tuesday, the day that the ProShares bitcoin futures ETF started trading. MicroStrategy is considered another way for investors to play the cryptocurrency market, especially if they don’t want to take the plunge into bitcoin just yet.

Bitcoin Portfolio

MicroStrategy owns more than 114,000 bitcoins on its balance sheet. The value of the investment has about doubled in size from approximately $3 billion to over $6 billion. And according to MicroStrategy CEO Michael Saylor, the company is holding tight.

MicroStrategy is not the only company with bitcoin on its balance sheet. A year ago, Jack Dorsey’s payments company Square followed suit. After pouring more than $200 million into bitcoin in total, Square’s holdings are valued at $530 million, reports indicate.

Now Square is exploring the launch of a bitcoin mining operation, which is the process by which new coins are created and the network is secured. A recent tweet by Dorsey of the number “705742” has the cryptocurrency community convinced that it is bitcoin related, though the Square and Twitter CEO is keeping his cards close to the vest.

More Potential Gains Ahead

Both MicroStrategy and Square could potentially ride the crypto wave higher next week when a second bitcoin futures ETF is expected to make its debut. The VanEck Bitcoin Strategy ETF, which will trade under the ticker symbol XBTF, has received the regulatory clearance to begin trading in the coming days.

 

The investment management firm is also waiting on pins and needles for the U.S. SEC’s verdict on a VanEck “physical bitcoin” ETF, a decision that according to director Gabor Gurbacs is expected in November.

The Crypto Daily – Movers and Shakers – October 21st, 2021

Bitcoin, BTC to USD, rose by 2.73% on Wednesday. Following a 3.64% rally on Tuesday, Bitcoin ended the day at $66,021.0.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $63,535.0 before making a move.

Steering clear of the first major support level at $62,280, Bitcoin rallied to an early afternoon intraday high and a new swing hi $66,958.0.

Bitcoin broke through the first major resistance level at $65,333 and the second major resistance level at $66,404 before easing back to sub-$66,000 levels.

Finding late support, however, Bitcoin wrapped up the day at $66,000 levels.

The near-term bullish trend remained intact, supported the latest return to $66,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Wednesday.

Litecoin rallied by 9.85% to lead the way, with Ethereum rallying by 7.31%.

Chainlink (+5.98%), Polkadot (+4.62%), and Ripple’s XRP (+4.90%) also found strong support.

Binance Coin (+2.72%) Bitcoin Cash SV (+3.85%), Cardano’s ADA (+3.81%), and Crypto.com Coin (+3.96%) trailed the front runners, however.

In the current week, the crypto total market fell to a Monday low $2,385bn before rising to a Wednesday high $2,701bn. At the time of writing, the total market cap stood at $2,651bn.

Bitcoin’s dominance fell to a Monday low 46.33% before rising to a Wednesday high 47.73%. At the time of writing, Bitcoin’s dominance stood at 46.76%.

This Morning

At the time of writing, Bitcoin was down by 0.50% to $65,693.2. A bearish start to the day saw Bitcoin fall from an early morning high $66,022.0 to a low $65,687.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Cardano’s ADA (+0.08%) and Crypto.com Coin (+0.03%) avoided the red early on.

It was a bearish start for the rest of the majors, however.

At the time of writing, Binance Coin was down by 0.54% to lead the way down.

BTCUSD 211021 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $65,505 pivot to bring the first major resistance level at $67,474 into play.

Support from the broader market would be needed for Bitcoin to breakout from Wednesday’s new swing hi $66,958.0

Barring a broad-based crypto rally, the first major resistance level would likely cap the upside.

In the event of another breakout, Bitcoin could test resistance at $70,000 levels before any pullback. The second major resistance level sits at $68,928.

A fall through the $65,505 would bring the first major support level at $64,051 into play.

Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$64,000 levels, The second major support level sits at $62,082.

Stocks Climb, Dow Touches Record; U.S. Oil Rises After EIA Data

Boosting oil was data showing crude inventories at the largest U.S. storage site hit their lowest level in three years.

In cryptocurrencies, bitcoin touched a record high, a day after the first U.S. bitcoin futures-based exchange-traded fund began trading.

The corporate earnings season will be in full swing in many countries over the coming weeks.

Verizon Communications Inc gained 2.3% as it added more postpaid phone subscribers than expected in the third quarter. Tesla is among companies that will release results later on Wednesday.

“We had our dip two weeks ago, and we’re buying the dip. So here we are back at all-time highs and now you’ve got sentiment almost flipped 180 degrees,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

Investors are still on high alert for corporate comments on the impact of supply constraints, higher costs and labor shortages. They will also be glued to earnings from the heavily weighted U.S. technology names.

The Dow Jones Industrial Average rose 131.85 points, or 0.37%, to 35,589.16, the S&P 500 gained 14.27 points, or 0.32%, at 4,533.9 and the Nasdaq Composite dropped 12.38 points, or 0.08%, to 15,116.72.

The pan-European STOXX 600 index rose 0.32% and MSCI’s gauge of stocks across the globe gained 0.38%.

In the U.S. Treasury market, long-dated yields rose after a weak auction of 20-year notes.

U.S. 20-year yields rose to one-week highs of 2.1%, and were last up 2 basis points at 2.0873%. U.S 30-year yields also touched one-week peaks of 2.1210% and were last up 3 basis points at 2.1163%.

Investors are trying to gauge the outlook for interest rates. They expect the U.S. Federal Reserve to announce tapering of its bond buying, and money markets futures are pricing in one U.S. rate hike later next year.

The greenback hit a one-year high against a basket of other currencies last week as market participants ramped up bets that the Fed will raise rates sooner than expected to quell rising price pressures.

Those bets have faded, however, while investors are pricing for even more aggressive rate increases in other countries and as commodity-linked currencies including the Canadian and Australian dollars outperform.

The dollar index was last down 0.2% at 93.57.

In energy, Brent crude futures settled at $85.82 a barrel, a gain of 0.9% or 74 cents, and the highest since October 2018. November U.S. West Texas Intermediate (WTI) crude, which expires on Wednesday, settled at $83.87, up 91 cents, or 1.1%. The more active WTI contract for December settled up 98 cents to $83.42 a barrel.

Earlier, U.S. crude stocks fell by 431,000 barrels in the most recent week, the U.S. Energy Information Administration said, against expectations for an increase, and gasoline stocks plunged by more than 5 million barrels as refiners cut processing due to maintenance.

U.S. gold futures gained 0.90% to $1,784.10 an ounce.

For a look at all of today’s economic events, check out our economic calendar.

(Additional reporting by Tom Wilson in London and Karen Brettell and David Gaffen in New York; Editing by Catherine Evans, Shounak Dasgupta and Richard Chang)

Crypto Hits the Mainstream as Bitcoin ETF Beats Expectations

The bitcoin futures ETF (“BITO“) made a huge splash on its maiden day of trading, reaching key milestones and smashing records. Not only did the enthusiasm catapult the bitcoin price closer to a fresh all-time high, but the fund itself made its presence known among its ETF peers. It proved that there is pent-up demand for an ETF product, especially as the bitcoin price crosses $64,000.

Out of the Gate

The ProShares Bitcoin Strategy ETF (BITO) finished day one of trading with $570 million in assets. Of that, BITO saw $550 million in inflows, which when combined with the $20 million that ProShares raised in a former seed round brings the the firm’s total assets on day one to $570 million, as pointed out by Morningstar Research’s Ben Johnson.

Travis Kling, who runs Ikigai Asset Management, said the performance “massively exceeded” his expectations.

BITO’s trading volume came to extremely close to $1 billion on the first day of trading. Bloomberg’s senior ETF analyst, Eric Balchunas said that BITO “defied…expectations,” noting that it was “easily the biggest day one of any ETF in terms of natural volume.”

By widening the pool beyond “natural” or “grassroots interest,” BITO’s day one volume “still ranks No. 2 overall,” Balchunas pointed out. Based on these parameters, it was second only to the BlackRock US Carbon Transition Readiness ETF.

Inflationary Hedge

Billionaire hedge fund trader Paul Tudor Jones, who is CIO at Tudor Investment Corp, has already looked to bitcoin as a hedge for his portfolio last year. Even with the bitcoin price near record highs, he still believes that crypto is a better hedge than gold, telling CNBC, “Clearly there is a place for crypto and clearly it’s winning the race against gold at the moment.”

Tudor Jones revealed that his portfolio has crypto “in the single digits,” adding that the firm’s fund has a “small trading position.”

Meanwhile, the broader cryptocurrency market’s total market cap currently hovers at $2.5 trillion. Bitcoin’s market cap alone is $1.2 trillion, with a dominance rate of 47.4%, according to CoinMarketCap.

On Tuesday, more than 24 million shares of BITO were traded. The market will be looking to see if that momentum will be sustained. With the bulls clearly in control, BITO has the wind at its back for now.

Bitcoin Price Prediction – A Move Through to $65,000 Would Bring $68,000 into Play

After a mixed day for Bitcoin and the broader market on Tuesday, it’s been another mixed morning for the crypto market.

At the time of writing, Bitcoin, BTC to USD, was down by 0.66% to $63,841.0.

A mixed start to the day saw Bitcoin rise to an early morning high $64,340.7 before hitting reverse.

Falling well short of the first major resistance level at $65,333, Bitcoin fell to a mid-morning low $63,535.0.

Steering clear of the first major support level at $62,280, Bitcoin broke back through to $64,200 levels before easing back.

BTCUSD 201021 Hourly Chart

The Rest of the Pack

It has been a mixed morning.

Binance Coin was down by 0.26% to lead the way down, with Ethereum (-0.18%) also joining Bitcoin in the red.

It was a bullish morning for the rest of the majors, however.

At the time of writing, Ripple’s XRP was up by 2.11% to lead the way, with Cardano’s ADA (+1.89%) also finding strong support.

Bitcoin Cash SV (+0.25%), Chainlink (+0.68%), Crypto.com Coin (+0.52%), Litecoin (+0.62%), and Polkadot (+0.81%) trailed the front runners, however.

Through the early hours, the crypto total market cap rose to an early morning high $2,559bn before falling to a low $2,530bn. At the time of writing, the total market cap stood at $2,553bn.

Bitcoin’s dominance rose to an early morning high 47.47% before falling to a low 47.20%. At the time of writing, Bitcoin’s dominance stood at 47.20%.

For the Afternoon Ahead

Bitcoin would need to avoid the $63,351 pivot to take a run at the first major resistance level at $65,333.

Support from the broader market will be needed, however, for Bitcoin to breakout from this morning’s high $64,340.7.

Barring a broad-based crypto rally, the first major resistance level would likely cap any upside.

In the event of another extended rally through the afternoon, Bitcoin could test resistance at $68,000 levels before any pullback. The second major resistance level sits at $66,404.

Bitcoin would need plenty of support, however, to break out from its April all-time high $64,829.0.

A fall through the $63,351 pivot would bring the first major support level at $62,280 into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should avoid sub-$60,000 support levels. The second major support level sits at $60,298.

Looking beyond the support and resistance levels, we saw the 50 EMA pull away from the 100 and 200 EMAs through the morning.

We also saw the 100 EMA pull away from the 200 EMA, delivering further support.

Through the 2nd half of the day, a widening of the 50 EMA from the 100 would bring $65,000 levels into play.

Key through the late morning and early afternoon, however, would be to avoid the $63,351 pivot.