TL;DR

• BTC is up & ETH is up

• BTC over-performed ETH this week 

• Bitcoin dominance is down

• The hot coin we look at this week is $KUJI

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BTC & ETH Market Update 📈

Crypto is up this week, with BTC being up 0.9% and ETH up 0.7%:

Bitcoin dominance has decreased over the week, starting from 54.5% to a peak of 54.7% and ending at 54.4%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Bitcoin showed resilience following the release of the latest U.S. Producer Price Index (PPI) report, which revealed higher-than-expected inflationary pressures.

The PPI for September increased by 1.8%, surpassing the forecasted 1.6%, adding to concerns about rising inflation alongside the Consumer Price Index (CPI). Despite this, Bitcoin rebounded from a dip below $59,000, recovering by 4% and reaching as high as $61,500.

The Federal Reserve's recent 0.5% interest rate cut, criticized for being unnecessary by some market commentators, added complexity to the inflation outlook.

Traders remain divided on the Fed’s next move, with an 84% chance of a smaller 0.25% rate cut in November, according to CME Group’s FedWatch Tool.

Despite inflationary concerns, Bitcoin held firm, with analysts noting the potential for a retest of the $62,000 and $65,000 levels in the short term.

Ethereum is poised for a potential 40% price surge as it approaches the final phase of a bullish fractal pattern, despite a period of sideways consolidation. Since dropping below $2,450 on October 2, Ether has traded within a tight $100 range.

While Bitcoin has shown more volatility, Ethereum's weekly returns have been stable, with just a 1% dip. A fractal pattern, observed in previous cycles, signals that ETH could rise to $3,375, representing a 40% gain. However, if the price drops below $2,251, the fractal remains valid.

Additionally, the ETH/BTC pair is forming a double bottom, signaling a potential bullish reversal. Still, if ETH falls to $2,085 as predicted by some analysts, it could invalidate the bullish fractal setup, making the next few weeks critical for price direction.

Ethereum (ETHUSD) Analysis:

Ethereum (ETH) is experiencing weak performance in a falling trend channel, with key support at 2,165 and resistance at 2,663. A break of either level could determine its next move, while a recent double top breakdown suggests potential further declines to 2,116. Volume inconsistencies with price confirm the ongoing bearish trend in the medium term.

Bitcoin (BTCUSD) Analysis:

Bitcoin closed at $60,577 on October 11, 2024, showing a 17.09% drop from its yearly high. Short-term and medium-term analyses are negative, with key support at $53,769 and resistance at $66,845. Strong negative momentum and low RSI suggest further declines, though oversold conditions may trigger a rebound. Long-term trends remain neutral, with resistance at $70,000, indicating a hold recommendation for the long term.

Expected Trading Ranges:

• Ethereum (ETH): resistance level at $2,663 and support at $2,165.

• Bitcoin (BTC): resistance level at $66,845 and support at $53,769.

Market Outlook:

The Bitcoin market outlook is cautious, with recent weakness below key support levels and resistance at $66,845. While oversold conditions may trigger a rebound, critical resistance at $70,000 remains a significant hurdle for upward movement.

The market outlook for Ethereum (ETH) is cautious, with support at 2,165 and resistance at 2,663. A break below support could lead to further declines, while a rise above resistance may indicate a potential reversal. Close monitoring is essential as investor interest appears to be diminishing.

BTC/ETH ratio has seen an increase:

Over the past six days, the BTC to ETH conversion rate has experienced a net increase. Starting at 25.75 ETH on October 6, the rate dipped to a low of 25.32 ETH on October 10 before rising to 25.66 ETH on October 12. This represents an overall gain of 0.09 ETH during the period, indicating a positive trend despite some fluctuations in the rate.

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Hot Coin: KUJI 🔥

In this week’s newsletter, we dive into Kujira’s token with the ticker: KUJI.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

Kujira (KUJI) is a decentralized Layer 1 blockchain ecosystem designed to provide sustainable solutions for Web3 protocols, developers, and users.

Its focus on "Adult DeFi" promotes responsible financial practices, with governance voting required for contract launches to ensure project quality and sustainability.

The platform’s on-chain scheduler minimizes wasted transactions, directing fees back to users, while its native token system streamlines smart contract development by making all tokens native Cosmos assets.

Kujira also supports secure contract creation through the Cosmos SDK and CosmWASM 1.0. With a growing community of over 50,000, Kujira prioritizes real-world use cases, revenue generation, and long-term viability.

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