The first weekend of November has arrived, and crypto investors seem cautious as the rallies have temporarily calmed down. At the time of writing, the price of Bitcoin is $34,500. So, what does the current state of the market indicate? Will the upward trend continue for cryptocurrencies?
Bitcoin (BTC) Analysis
The price quickly climbed to the $36,000 mark but retreated just as fast. After rapid surges like this, minor corrections are not surprising. However, the fact that the higher levels are holding as support reduces investors’ concerns. When the market is in an upward trend, downturns are seen as buying opportunities, but it is important to identify the local bottom level before making a purchase.
Michael Saylor, the founder of MicroStrategy, stated that the current price could be a great entry opportunity for investors who are willing to wait between 12 to 48 months. The company’s latest earnings report revealed that they had acquired an additional 155 BTC.
As for the price of Bitcoin, profit-taking halted the rally at $35,985, and the price is struggling to hold below $35,000. If the support level is lost and we see closures below the $33,390 level, the price could pull back to $32,611 and $31,200.
In general, in an upward trend, bulls strongly defend the 20-day EMA. If this level holds, it indicates that the trend remains positive. Bulls may then make a new attempt to push the price to $40,000.
Fed swaps are pricing in a 100bp interest rate cut for next year instead of 50bp. This is the result of today’s price movement and Powell’s relatively optimistic statements on the macro front. As interest rates rise, they will fall, creating an image of a Fed that is about to turn from its peak for now.
Ethereum (ETH) Analysis
Although the ETH price briefly surpassed the $1,865 resistance level the other day, it followed Bitcoin’s lead and turned back. Bears may try to pull the price towards the $1,746 support level. This could coincide with a support test for BTC. For Ether, closures below the support will indicate a return to a bearish trend.
If bulls manage to overcome the aforementioned resistance, the $2,000 psychological resistance level could be tested.
