Weekly Cryptocurrency Update (Oct 16- 22) – Top 5 Cryptocurrency Coins to Watch
Arslan Butt • 5 min read
Weekly Cryptocurrency Summary – Bitcoin (BTC/USD)
The Bitcoin price soared to a new ATH (all-time high) above $66,80, before correcting lower against the US Dollar. BTC is currently trading below $63,000, and it is still vulnerable to further losses. Recently, there was a downside correction below the $65,000 support level. On the BTC/USD hourly timeframe, there was also a break below a solid bullish trend line, with support near $63,200.
A low has been established near $62,050, and the market is currently consolidating losses. Near the $63,200 level, there is immediate resistance, close to the 23.6 percent Fib retracement level of the turn-around from the upswing of $66,982, to the low of $62,050. The 100-hourly SMA is also just over the $63,200 mark.
A decisive break above the $63,200 resistance level might pave the way for a new rally. The next major resistance is near $64,500, after which the price may rise to $66,000. Bitcoin’s downside fall could be extended if it fails to pass the $63,200 barrier zone.
The reason behind Bitcoin’s previous upward rally could be attributed to Tesla’s third-quarter earnings report, which suggested that the company currently owns Bitcoin to the value of $1.26 billion, according to its balance sheet. In the third quarter, the electric car business recorded a $51 million Bitcoin-related impairment. Furthermore, Elon Musk, the CEO of Tesla, tweeted a meme showing the price of Bitcoin at $69,500, and that of Ether at $4,200. This positive development has positively impacted BTC values, thereby limiting further losses.Alongside the existing investment of $5.5 billion, the Houston Firefighters’ Relief and Retirement Fund (HFRRF) in Texas has started investing in Bitcoin and Ether. “This is the first time a public pension plan in the United States has announced an investment in digital assets. The HFRRF stated on Thursday that it had purchased Bitcoin and Ether for the defined benefit plan for Houston firefighters. However, this is having no noticeable impact on the movement of Bitcoin prices at this moment.
Another critical factor that has helped the BTC/USD pair stay bid is the recent selling bias in the US dollar. Even though vital US economic data provided the US currency with a lift earlier, the greenback lost its traction and fell in Asia on Friday morning, pointing to the second week of declines. According to data released on Thursday, existing house sales in the United States increased by 7% month over month, amounting to 6.29 million units in September. The dollar initially received a boost from the better-than-expected figures, but it failed to maintain this upswing when the Asian session began.
Weekly Cryptocurrency Summary – Ethereum (ETH/USD)
The ETH/USD coin failed to gain pace above the $4,100 resistance zone, and it is still showing bearish signs around the 4,053.34 level. With a 24-hour trading volume of $26,490,777,106 USD, the current Ethereum price is $4,125.75 USD. In the previous 24 hours, Ethereum has lost 1.18 percent of its value. With a live market cap of USD 487,914,900,292, it is currently ranked #2 on the market. The maximum supply is not known.
It has a circulating supply of 118,025,867 ETH tokens. Unfortunately, the selling bias surrounding the world’s largest cryptocurrency, Bitcoin, has played a significant role in lowering the ETH prices too. Bitcoin is showing bearish signals versus the US Dollar, below $53,000. BTC might fall even deeper, possibly testing the $60,000 support level.
However, losses in the ETH prices were also limited after $25 million worth of Bitcoin and Ether were added to the portfolio of a US public pension fund for firefighters. According to Bloomberg, the Houston Firefighters’ Relief and Retirement Fund has $5.5 billion in assets, and it has now invested $25 million in the two leading cryptocurrencies. The New York Digital Investment Group (NYDIG), a Bitcoin investment arm of Stone Ridge Asset Management, facilitated the transaction.
Weekly Cryptocurrency Summary – Litecoin (LTC/USD)
Weekly Cryptocurrency Summary – Ripple (XRP/USD)
The latest developments in Bitcoin, the world’s largest cryptocurrency, failed to impact the crypto market positively. On Wednesday, Tesla (Nasdaq: TSLA), Elon Musk’s electric car company, presented its third-quarter earnings report. The corporation brought in $13.757 billion in revenue, which was up 57% from the same time last year. “The third quarter of 2021 was a record quarter in many ways,” it stated. “Our net income, operational profit, and gross profit were all at record highs.” Tesla’s net digital assets as of September 30 were $1.26 billion, down from $1.311 billion at the end of the second quarter. In the third quarter, Tesla announced a $51 million Bitcoin-related impairment.The drop in Ripple prices could be temporary, as Ripple Inc, a Distributed Ledger company, has announced a partnership with Al Ansari Exchange, a UAE-based FX and global transfer provider. The company chose RippleNet Cloud to enable cross-border transfers to Maylasia. MoneyMatch, a Malaysian fintech firm, will be used to facilitate cross-border payments. As a result of the partnership, Malaysians living in the UAE can now use Ripple’s cloud technology to transmit almost instant payments to their loved ones back home.
Weekly Cryptocurrency Summary – DOGECOIN (DOGE/USD)
However, the downticks in Dogecoin appeared even after billionaire and business tycoon, Elon Musk, released his company’s third-quarter earnings report. According to Tesla’s third-quarter earnings release, it currently has $1.26 billion in Bitcoin on its balance sheet. In the first quarter, the electric car manufacturer recorded a $51 million loss due to Bitcoin. Meanwhile, Musk tweeted a meme depicting Bitcoin’s price at $69,500 and Ether’s price at $4.2,500.Furthermore, the losses could be transient or short-lived, as a broad-based US dollar selling trend was considered one of the primary factors that kept any further Dogecoin losses at bay.