Navigating November: Bitcoin, Ethereum, SOL, and LINK Analysis. Too late to buy?
Can we catch the Dip on BTC, SOL, and LINK? Plus Interviews with Bakkt and Solana!
Bitcoin has been incredibly popular recently. However, now that it has surged throughout “Uptober”, experiencing a 28% increase on the month, especially institutions and large companies holding substantial amounts of Bitcoin are closely monitoring its next move.
Nevertheless, with such a significant monthly increase and the RSI (Relative Strength Index) remaining oversold for over a week, is it finally time for Bitcoin to retrace back to 30k or even lower?
Bakkt: One of the biggest players in Bitcoin
A significant part of Bitcoin's rise during October was driven by speculation about an upcoming ETF for Bitcoin being launched in the markets. While a spot ETF for Bitcoin has not yet gone live, there have been other Bitcoin derivatives trading for some time.
For instance, Bakkt is an initiative backed by Intercontinental Exchange (ICE) which owns the NYSE, aimed at making cryptocurrency trading and payments feasible for both retail and institutional investors. Traders can already purchase Bitcoin Futures, but a Bitcoin Spot-based ETF is not available yet.
Bakkt is responsible for managing the Bitcoin that supports its custody services and futures contracts. As they hold a substantial amount of Bitcoin, they closely monitor industry news to stay ahead in terms of Bitcoin innovation.
Do they possess more information about the potential launch of a Bitcoin ETF? This week, I had a conversation with the Chief Product Officer of Bakkt, Dan O'Prey, to gain his insights on what he anticipates Bitcoin will do from now until the Halving in Q2 2024, how institutions are preparing for it, and how Bakkt, as a publicly traded company, intends to bridge the gap in providing additional Bitcoin services.
Solana: more than just a token, Payments for 3 million merchants on Spotify too!
Solana has been gaining substantial momentum lately, primarily due to concerns over the potential sale of SOL owned by FTX on the market. Since those concerns emerged, it has emerged as one of the top-performing altcoins, surging from $17 to approximately $40 at present.
However, Solana represents more than just a cryptocurrency and a platform; it boasts a wide array of applications. Presently, one of Solana's primary use cases is for processing payments.
Solana Pay recently established a significant partnership with Shopify, facilitating the use of USDC (on the Solana Blockchain) as a payment method for over 3 million merchants within the Shopify Ecosystem. This accomplishment was spearheaded by Josh Fried, Head of Commerce Business Development at the Solana Foundation, who previously played a pivotal role in developing Google's payment system over the past decades. I had the privilege of conversing with Josh about this substantial partnership and his bullish outlook on Solana.
Additionally, Raoul Pal from Real Vision recently expressed his optimism regarding Solana's future, sharing a chart on Twitter illustrating its outperformance compared to both BTC and ETH throughout the month of October.
Minterest DeFi moving into one holistic ecosystem:
DeFi platforms must adopt a more comprehensive perspective when considering blockchain technology.
In the near future, the competition between blockchains in terms of Total Value Locked (TVL) will become obsolete. Instead, we will witness the emergence of cross-chain compatibility and integration. This integration will lead to higher liquidity and increased value locked within a unified ecosystem, resulting in narrower spreads, reduced costs, and enhanced efficiency. Consequently, it will present a stronger challenge to traditional financial products.
I'm particularly interested in DeFi platforms like Minterest, which are forward-thinking and are in the process of establishing a multi-chain strategy right from the outset. I'm eagerly anticipating their public launch in Q1 2024. Given the current trajectory, the market is poised to be highly competitive by that time, and institutions will be seeking their preferred DeFi platform to secure long-term yields.. Here’s the latest update on Minterest driving their multi-chain strategy.
Crypto News:
Kraken has notified its users when they will comply with a requirement to provide IRS with user records for trades between 2016-2020.
Grayscale’s GBTC implied share price is now 13.1% below the Bitcoin spot price, lowest discount since BTC's all-time high in November 2021
95 years ago October 29th, the Stock Market Crash of 1929 wipes out $10 billion overnight
U.S. Treasury Deputy Secretary: Crypto Not Major Source of Funding for Terrorist Groups
So the $TIA drop is over. On average, people made around $500 - $700 just by being active on web3. This is why it’s important to follow other airdrops and use networks before they launch
Hackers Stole $1.41 Billion YTD and $22.2 Million in October
Google Cloud launches Solana Network Dataset on BigQuery.
Safemoon founders today were charged with conspiring to commit securities fraud, wire fraud & money laundering.
Sam Bankman-Fried charged GUILTY on all seven criminal fraud counts.
Other Good Reads:
Check out Coin Club newsletter for condensed summaries from the world’s most popular crypto coins with daily alpha, news, and analysis, all free. Read it here
Market Analysis:
$BTC Bitcoin:
Bitcoin's remarkable surge in October was primarily concentrated in the final week of the month. Judging by social media sentiment, many traders found themselves on the sidelines and missed out on this uptrend.
Currently, Bitcoin seems to have potentially reached a local peak. There's a noticeable decline in trading volume, the Relative Strength Index (RSI) has been in the oversold territory for a week, and a significant amount of profit-taking occurred when Bitcoin reached $36,000.
Birb has maintained his position in Bitcoin, but he has adjusted his stop-loss orders to $34,000 to lock in profits in case of a market downturn. IncomeSharks, who has a solid track record, has liquidated all of his swing trading positions. Both anticipate a retracement to open new long positions at more favorable price levels, rather than selling and repurchasing at higher prices.
Over the past two weeks, certain altcoins experienced substantial gains, with some surging as much as 50%. Traders who profited from these rallies are now displaying signs of greed and employing high leverage. A Bitcoin pullback at this point could also affect altcoins, potentially leading to widespread liquidations. Quick profits can vanish just as rapidly. A pullback to $30,000 from the current level represents a 14% decline, a scenario that has occurred multiple times in Bitcoin's history. Such a move might transpire in as little as a one-hour trading candle.
For those who are actively trading or contemplating accumulating more Bitcoin, it's advisable to be cautious and set tight stop-loss orders in case the market takes a bearish turn. While there are currently no sell signals from the EngineeringRobo and Birbicator indicators, traders have an intuitive sense that selling pressure could materialize in the near future.
Ethereum is currently, for the most part, tracking Bitcoin's overall trend, albeit with slightly less vigor than Bitcoin. Recent headlines regarding ETFs and the dominant position of the flagship cryptocurrency have been dominating the spotlight, while Ethereum has yet to claim its central role. The ETH/BTC trading pair continues its descent, but there's an expectation of a potential upswing in the coming month or two. This anticipation coincides with Ethereum and other altcoins vying for the spotlight in what appears to be the initial phases of a mini-altcoin season, as evident from this week's developments.
Should Bitcoin opt for a decline, Ethereum might also experience a corresponding dip into this range.
$SOL Solana:
Solana has emerged as one of the standout performers among altcoins in October, boasting a remarkable 70% surge within the month. It's worth noting that cryptocurrencies showing strong momentum often tend to sustain their upward trajectory, even though many traders might feel they've missed the opportunity.
Considering this substantial surge throughout the month, it's reasonable to anticipate that Solana could experience a downturn, especially if Bitcoin undergoes a temporary decline. While some seasoned traders anticipate a more modest dip in comparison to other cryptocurrencies, I, on the other hand, foresee SOL re-entering a certain trading range. If we're fortunate, it might even reach the $35 threshold before embarking on an upward trajectory. It's worth recalling that Solana achieved an all-time high price of $240 in its previous rally.
#LINK Chainlink :
Chainlink has continued to perform admirably, demonstrating a 47.9% increase on the monthly chart. Now that LINK has settled into a new higher trading range, a potential dip may be in the cards should Bitcoin decide to take a downward turn. According to Fibonacci ratios, one could reasonably anticipate a retracement at least to the 38.2% level, which stands at $10, with an even more favorable scenario bringing it down to the 50% retracement level, approximately ranging from $9.49 to $9.51.
LINK is poised to sustain its positive momentum when the broader altcoin market regains traction. While the previous all-time high for LINK hovered around $50, speculators are harboring expectations of a substantially higher valuation in the next surge, fuelled by the release of the CCIP on LINK and a plethora of forthcoming advancements.
Other Notable Altcoins moving this past week:
SOL, LINK, FET, INJ, NEAR, RUNE, RLB, UNI, SUSHI and more. Checking CoinGecko on the 7d risers to see which coins are gaining more volume.
Thanks for reading!
-Ashton Addison, CEO of Crypto Coin Show