With BTC emerging as the undisputed winner of Uptober (besides Shiba Inu), the world’s largest cryptocurrency by market capitalization has resumed its upward trajectory after retaking the $60,000-mark.
The Fundamental Look
Continuing its impressive run from October, BTC has been trading in a tight range over the past few days. After reaching a one-week high on November 2, BTC prices experienced a sudden pump as the BTCUSD pair gained over $1,500 within minutes.
Per crypto analysts, after reaching its all-time high of around $66,900 the other week, the bullish sentiment that prevailed last month appears to be cooling.
However, the current market scenario indicates that BTC holders are gearing up for a strong November, expecting positive returns heading into the end of the year. Meanwhile, a recent report by CoinShares suggests that bitcoin ETF inflows, which hit over a billion dollars in its first week of trading, have nosedived in the past week as altcoins continue to dominate the market.
In mining news, Marathon Digital (MARA) produced 417.7 bitcoins in October, a 23% increase over the previous month. With a mining fleet that produces approximately 2.96 exahashes (EH/s) via 27,280 active miners, the mining giant now holds about 7,453 bitcoins, expanding its total holdings to a market value of roughly $457 million. Another mining firm, Argo Blockchain, posted record-setting revenues for Q3, 2021. Per the company’s latest financial report, Argo mined 597 bitcoins and “BTC equivalents” during the third quarter of 2021, bringing its holdings to 1,836 BTC.
Moving on to adoption, Nigeria continues to lead in crypto ownership, with 50% of the country’s crypto users currently holding BTC. In Central America, El Salvador’s government continues to embark on bitcoin-related projects. The government is now building 20 new schools from the “surplus” from the state’s Bitcoin Trust account, according to a tweet from President Nayib Bukele.
Per a report by Breitbart News, U.S. Senator Ted Cruz has introduced a resolution proposing an Exchange of Payment for Transactions. If approved, three key departments within U.S. Congress would have to adopt bitcoin as a medium of exchange. Finally, Commonwealth Bank’s 6.5 million customers will be eligible to buy, sell, and hold bitcoin directly from the Australian bank’s app beginning next year.
Whales Of The Week
- October 28: 4,039.999 BTC moved from multiple addresses to Binance
- October 28: 5,000.000 BTC moved from multiple addresses to Coinbase
- October 29: 10,000.000 BTC moved from Binance to an unknown wallet
- October 29: 7,260.000 BTC moved from multiple addresses to an unknown wallet
- October 30: 6,992.157 BTC moved from multiple addresses to an unknown wallet
- October 31: 3,500.000 BTC moved between unknown wallets
- November 1: 9,975.319 BTC moved from multiple addresses to an unknown wallet
- November 1: 9,900.870 BTC moved from multiple addresses to an unknown wallet
- November 2: 6,274.825 BTC moved from multiple addresses to an unknown wallet
- November 2: 15,099.866 BTC moved between unknown wallets
The Technical Take
Despite its solid October performance, BTCUSD has lagged behind peers’ performance over the last week, climbing a more modest 7.84% compared to the 16.99% surge in Ethereum and 10.29% rally in Cardano.
Over the last week, BTCUSD has been trending higher in an equidistant channel formation, confirming the upward bias after prices retreated from fresh all-time highs in October. With the pair currently trading at the midpoint of the channel, any pullback towards the lower channel line could present an interesting entry point to follow the existing trend.
Another pattern unfolding on the daily chart is a head and shoulders bullish formation. The left shoulder line at $63,100 is the key level to watch for a breakout, with the neckline at $60,800 possible presenting another long entry point if a break higher fails. The head line at $57,500 is acting as secondary support should any deeper correction unfold alongside the 50-day moving average trending at $54,000.
On the upside, $65,950 is the level to watch ahead of all-time highs near $67,000 per coin. Any serious momentum accompanied by rising volumes could signal another leg of the current uptrend that delivers brand new all-time highs.
Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.
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