TL;DR

• BTC is up & ETH is up

• BTC over-performed ETH this week 

• Bitcoin dominance is up

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

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BTC & ETH Market Update 📈

Crypto is up this week, with BTC being up 3.0% and ETH up 0.9%:

Bitcoin dominance has increased over the week, starting from 55.57% to a high of 56.78% and ending at 56.5%. 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 recently faced notable price fluctuations driven by short-term holder behavior and macroeconomic indicators.

On October 31, as Bitcoin dipped below $70,000, short-term holders (STHs) sent around 54,000 BTC—valued at $3.76 billion—to exchanges, the largest sell-off since April, according to Glassnode.

This mass liquidation reflected declining profit margins, with the Short-Term Holder Spent Output Profit Ratio (SOPR) dropping below 1.01.

Analysts noted potential support around $68,000 as buying interest emerged. The market sentiment shifted on November 1 when U.S. nonfarm payrolls revealed only 12,000 new jobs added in October, well below expectations of 106,000.

This raised concerns about a softening labor market and speculation about Federal Reserve rate cuts, boosting Bitcoin past $71,000.

Key support levels were identified around $69,000 and $71,300, with the October monthly close erasing four months of losses, indicating a bullish sentiment as traders watch market and economic interactions closely.

Ethereum’s rally to $3,000 relies on both technical resilience and network improvements for scalability and adoption. After a recent dip to $2,382, Ethereum bounced back above $2,500, suggesting a bullish trend if it holds above $2,600.

However, sustainable growth hinges on overcoming regulatory barriers, especially with ETF limitations compared to Bitcoin.

While Ethereum leads in DeFi and layer-2 applications, its lower staking rewards versus competitors like Solana pose a challenge.

Planned upgrades, including EIP-7742 and the Pectra update in 2025, aim to lower fees and enhance efficiency. These efforts seek to balance affordability with security, crucial for institutional support and long-term growth..

Ethereum (ETHUSD) Analysis:

As of November 1, 2024, Ethereum (ETH) closed at $2,509.91 after a decline of $135.15. The technical outlook reveals a potential reversal pattern, with Ethereum breaking out of a falling trend channel and forming an inverse head and shoulders pattern. A key resistance level is set at $2,618, and a decisive break above this level could signal further price gains. Currently, support is found at $2,230, while resistance stands at $2,720. The RSI indicates a bullish trend, though volume trends suggest caution with low trading volumes at peaks and high volumes at lows, impacting the strength of the current trend.

Bitcoin (BTCUSD) Analysis:

As of November 1, 2024, Bitcoin (BTC) closed at $69,520, down $2,731.92. The short-term outlook remains positive, supported by a rising trend channel and a lack of immediate resistance, although caution is warranted as it hovers near critical support at $66,000. Medium-term trends suggest potential upside towards $84,547 following a recent break above $67,241, yet a dip below $71,000 raises concerns about possible declines. Long-term indicators show overall bullish sentiment, but vigilance is necessary due to recent price fluctuations.

Expected Trading Ranges:

• Ethereum (ETH): Support at $2,230; Resistance at $2,720.

• Bitcoin (BTC): Support at $66,000; Resistance at $71,000.

Market Outlook:

Bitcoin is currently trading at $69,520 within a rising trend channel. Short-term support is at $66,000, with resistance around $71,000. Medium-term targets point to $84,547, but volatility necessitates caution as the market navigates these key levels.

Ethereum (ETH) shows a cautiously optimistic outlook, with support at $2,230 and resistance at $2,720. A breakout above $2,618 could signal further gains, though low trading volumes and the need for enhanced institutional interest present potential risks.

BTC/ETH ratio has seen an increase:

Over the past six days, the Bitcoin to Ethereum (BTC to ETH) conversion rate has shown an overall increase. It started at 27.02 ETH on October 26 and gradually rose, peaking at 27.89 ETH on October 31. While there was a slight decline to 27.58 ETH on November 1, this still reflects a general upward trend in the conversion rate during the past week, with a notable 14.84% increase for Bitcoin against Ethereum over the last 30 days.

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Hot Coin: BTC 🔥

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

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

What is the project about?

Bitcoin (BTC) is the first decentralized digital currency, leveraging blockchain technology and cryptography to enable secure peer-to-peer transactions without a central authority.

Unlike fiat currencies controlled by governments and central banks, Bitcoin operates on an open-source network where transactions are validated and recorded collectively by participants.

This decentralized structure enhances security and minimizes the risk of fraud or censorship. Bitcoin's limited supply is capped at 21 million coins which creates scarcity, driving demand.

Additionally, it facilitates cross-border payments, provides low transaction fees, and offers users financial autonomy, making it a revolutionary tool for individuals seeking independence from traditional banking systems.

Why is the project exciting now?

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

• Decentralization

• Limited Supply

• Blockchain Technology

• A Simple, Secure Store of Value

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