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Market Update - Week 43 2024

The premium weekly crypto market update to grow your portfolio

TL;DR

  • BTC is down & ETH is down

  • BTC over-performed ETH this week 

  • Bitcoin dominance is up

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

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BTC & ETH Market Update 📈

Crypto is down this week, with BTC being down 2.5% and ETH down 6.4%:

Bitcoin dominance has increased over the week, starting from 55.3% to a low of 54.67% and ending at 55.72%. 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 is poised for a potential surge to $100,000 within the next 12 months, driven by several key factors.

Institutional demand for spot Bitcoin ETFs has soared, with net inflows totaling $2.11 billion since October 11 and total assets under management exceeding $60 billion, reflecting strong market interest.

Additionally, the upcoming U.S. presidential election may foster a regulatory-friendly environment, as key political figures, including Donald Trump, express support for Bitcoin.

This is compounded by the escalating U.S. government debt, now at an all-time high of $35.8 trillion, which diminishes the dollar's value and positions Bitcoin as an attractive hedge against inflation.

Furthermore, recent economic stimulus measures from China and an increase in global liquidity are expected to encourage investor risk-taking, while significant accumulation by Bitcoin whales—amounting to 1.6 million BTC over six months—creates a supply shock that could further elevate prices.

Ethereum is currently testing a critical demand zone around $2,500 after a 7.5% weekly decline, trailing behind Bitcoin and major altcoins.

Despite this, analysts remain optimistic about its long-term prospects, with Web3 specialist Mando CT noting that Ethereum often drives broader market rallies.

Significant activity in the derivatives market, highlighted by a 96,000 ETH inflow on October 24, suggests increased volatility ahead.

While aggregated open interest has reached a yearly high, spot volumes are declining, indicating selling pressure.

For bullish momentum, Ethereum must close above its ascending trendline established since August, with a focus on sustaining recovery above $2,500.

Ethereum (ETHUSD) Analysis:

Ethereum is currently priced at $2,492.41, down $48.23. A recent breakout from a falling trend channel suggests a potential bullish reversal with an inverse head and shoulders formation developing. Key resistance is at $2,633, while support stands at $2,230. Despite a negative volume balance, the positive divergence in the RSI indicates a possible upward movement, making it important for investors to watch resistance levels closely.

Bitcoin (BTCUSD) Analysis:

Bitcoin is currently priced at $67,710.00, up $525.74. It shows a rising trend with support at $66,000 and resistance at $69,000, though the high RSI indicates potential overbought conditions. The medium-term outlook suggests a breakout from a horizontal channel, targeting $84,547 if resistance at $67,871 is surpassed. Overall, the recommendations are to hold in the short term, with a weak positive medium-term outlook and a positive long-term outlook.

Expected Trading Ranges:

  • Ethereum (ETH): resistance level at $2,633 and support at $2,230.

  • Bitcoin (BTC): resistance level at $67,871 and support at $66,000.

Market Outlook:

Bitcoin is positioned for a potential bull run, with analysts forecasting a price target of $100,000 in the next three months, driven by strong institutional interest and rising ETF inflows.

In contrast, Ethereum is testing a crucial demand zone around $2,500 after a 7.5% decline, with optimism stemming from significant derivatives market inflows. However, declining spot volumes indicate selling pressure. For Ethereum to regain bullish momentum, it must maintain a daily close above its ascending trendline.

BTC/ETH ratio has seen an increase:

Over the past six days, the Bitcoin (BTC) to Ethereum (ETH) conversion rate has experienced an overall increase. It started at 25.26 ETH on October 21 and rose to 27.09 ETH by October 25, reflecting a total increase of 7.2%. Specifically, the rate increased steadily each day, with notable gains of 2.17% on October 24 and 0.66% on October 25. This upward trend highlights growing value for Bitcoin in relation to Ethereum during this period.

For deeper insights and updates on Bitcoin and Ethereum, make sure to subscribe to our Premium Newsletter.

Hot Coin: SUI 🔥

In this week’s newsletter, we dive into SUI Network’s token with the ticker $SUI.

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

What is the project about?

Sui is a cutting-edge Layer-1 blockchain platform designed for global adoption, offering a secure, robust, and scalable development environment.

It utilizes a unique object-centric data model and the trusted Move programming language to address inefficiencies in existing blockchain frameworks. Sui prioritizes user experience by removing common barriers in blockchain interactions.

With features like zkLogin, sponsored transactions, and programmable transaction blocks, Sui sets a new standard for user accessibility and friendliness within Web3 applications, enabling simultaneous transaction processing unlike traditional blockchains.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

  • Exceptional Scalability

  • Earning Opportunities through Staking

  • Rapid Transaction Speeds

  • Advanced Programming Language

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