The point of the situation for the week: cryptocurrencies in difficulty but Bitcoin holds the ground
The analysis by Orlando Merone, Bitpanda Country Manager for Italy, takes a picture of the health of cryptocurrencies and Bitcoin.
Critptovalute: difficult week, but Bitcoin resists
After the golden month of October, the cryptocurrency market faces a difficult first week of November. To explain it to us, as always, is Orlando Merone, Bitpanda Country Manager for Italy.
In the last week Bitcoin has taken a step back from reaching its all-time high, going down by 10%. However, it continues to hold its own and still is up about 36% in the last month. In recent days, in fact, BTC had risen to over 57 thousand euros, carried away by the news of the first ETF launched in the American market. It is currently being traded just over 50 thousand euros, but the last few days have not damaged the general structure of the market. Analysts also share a bullish sentiment. The “Fear & Greed” cryptocurrency index, updated to October, stands at 76, recording a sharp increase compared to 27 in September.
ETH has been trading in a tight range for the past few days, coming close to the € 3,700. A seemingly normal situation of volatility after the strong movement at the beginning of the month that saw ETH grow by 39%. Beyond 1.72 billion literally went up in smoke since August 5th, day the EIP-1559 was introduced. The latter is the update that removes ETH from circulation instead of paying the miners who validate the transactions (proof-of-work). According to estimates, in fact, the update removes approximately € 25 million of Ethereum from circulation every day.
Are companies preparing to ride the trend?
Two of the largest cryptocurrencies, Bitcoin and Ethereum, have lost some of their value, but the overall market trend remains bullish. BTC’s dominance dropped from 44 to 48 in the previous week, a scenario that saw altcoins gain traction. It often happens that altcoin movements focus on a specific sector of tokens, such as meme coins or decentralized finance protocols, but the current market is seeing increases across all sectors. A possible sign of the beginning of the so-called “altseason”.
Stellar Foundation announced that the global payments technology company, Flutterwave, will use the USDC stablecoin on the Stellar network to streamline remittances between Africa and Europe. XLM is trading around the € 0.3 level, up around 20% in October, but still down 60% from its May high of € 0.66. Flutterwave will work alongside Stellar’s main EU payment partner, the Paris-based money transfer operator, Time Payments. The new partnership will help expand the network and “bring affordable money transfer services to African business owners.”
Other cryptocurrencies: how ADA and Polkadot fare
ADA’s price has now fallen by around 35% from its all-time high of 2.6 euros, bringing it back to the September range. ADA’s Relative Strength Index (RSI) is below 30, indicating an oversold position. Traders typically view an over-sold RSI as a means of entering the market.
The RSI is an indicator used to signal the internal strength of a stock or index with respect to a predetermined period in order to highlight the overbought areas (sell signal) and oversold areas (buy signal). It is displayed as an oscillator (a graphic line moving between two extremes) and can have a reading from 0 to 100.
In reverse Polkadothas expanded significantly on the market with an increase of about 60% thanks to the parachains. DOT is currently in a trading phase and has failed to rise to a resistance level above € 39.7 as short-term sellers have shown an aggressive stance, driving the price down to the € 34.2 support level. In any case, the trend remains bullish and according to analysts Polkadot will still have to say in the coming weeks.