Bitcoin (BTC) faced a considerable slump on Friday, and registered a low of $65,700 on Saturday as escalating tensions in the Middle East spooked markets. However, it found support at this level and recovered to push back above $67,000. The world’s largest cryptocurrency is trading around $67,600, marginally up over the past 24 hours as markets look to start the new week positively.
Almost all major cryptocurrencies, including Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Toncoin (TON), Polkadot (DOT), and Litecoin (LTC), have started the week on a positive note, registering notable 24-hour increases. The overall crypto market cap is up by 0.47% and currently stands at $2.3 trillion.
Speaking about the market developments, ChangeNOW CMO Pauline Shangett stated,
“Bitcoin’s rebound from its weekend slump shows resilience amid heightened geopolitical uncertainties, reflecting the broader crypto market's cautious optimism. The drop to $65,700, followed by a recovery above $67,000, suggests strong buying interest at lower levels, potentially signaling a near-term support zone. This resilience comes as global markets weigh risks related to escalating Middle Eastern tensions, which appear to have momentarily impacted investor sentiment.”
Spot Bitcoin ETFs Inflows Dwarf Gold ETFs
In less than a year of their launch, spot Bitcoin ETFs have seen unprecedented growth, boosting investor interest in the world’s largest cryptocurrency. Now, a report by Binance research has revealed that spot Bitcoin ETFs have a total accumulation of 938,000 BTC, worth over a staggering $63 billion at current prices. This figure represents 4.5% of the total circulating supply of BTC. If we consider the BTC held by similar funds, this figure grows to 1.1 million BTC or 5.2% of the circulating supply.
The inflows they attract can help gauge the popularity of spot Bitcoin ETFs. Spot Bitcoin ETFs have been responsible for removing an average of 1000 BTC per day from the market, registering positive flows in 24 out of 40 weeks. Additionally, the value of inflows has surpassed outflows by a considerable margin, with the ETFs recording cumulative flows of over $21 billion in the past ten months.
The Binance report also states that spot Bitcoin ETF inflows have surpassed the performance of early gold ETFs. The first gold ETF now has an AUM of under $130.9 billion. It was widely regarded as a resounding success after recording over $1.5 billion in inflows in its first year.
Retail Investors Driving Demand
The Binance report also revealed that retail investors accounted for 80% of the demand for spot Bitcoin ETFs. However, while institutional demand for spot Bitcoin ETFs is lower, it has registered consistent growth over the past few months and is up 7.9% since Q1. The number of institutional investors has also registered a steady increase, with the figure currently at 1200. Top institutional holders include hedge funds, investment advisors, major banks such as Goldman Sachs and Morgan Stanley, and pension funds, including the State of Wisconsin Investment Board.
CoinDCX Founder Urges Government To Reconsider Potential Crypto Ban
India’s muddled stance on crypto has continued to fuel debate, with recent discussions indicating regulators in the country favor CBDCs over private cryptocurrencies. Sumit Gupta, Founder and CEO of CoinDCX, has waded into the discussion, stating that CBDCs and cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) serve entirely different purposes and cannot be classified as competitors. Gupta’s post gained considerable traction, with several users warning that CBDCs could act as digital fiat and potentially carry the same risks as traditional currencies.
“CBDCs are issued centrally by the nation’s central bank, which ensures complete control over their issuance, supply and usage.”
While Gupta has stated that cryptocurrencies and CBDCs could co-exist, many still need to be convinced. Jack Booth, co-founder of TON Society, stated,
“CBDCs pose the greatest danger to self-sovereignty. Public trust in governments, especially in Western countries, is at its lowest level ever. The introduction of CBDCs, which would give unelected officials complete authority over your funds, would only worsen the existing problems that prompted and fueled the development of Bitcoin many years ago.”
Gupta added that a potential ban on cryptocurrencies could adversely impact the country’s growing Web3 ecosystem and damage the entrepreneurial spirit.
“Various Web3 reports have indicated that with over 75,000 core Web3 talents and more than 450 Web3 startups in India, implementing a ban could stifle the entrepreneurial spirit and hinder advancements in blockchain technology.”
Russia Publishes New Crypto Law
The Russian government has published a new law that amplifies state control over crypto mining activities and other related infrastructure nationwide. The new law will come into force on November 1 and allows the government to place restrictions on mining depending on location. It also allows the government to define specific procedures and circumstances to ban mining operations. One provision of the new law also allows the government to stop digital mining currency pools from functioning in specific areas and regulate infrastructure providers that support mining operations.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is looking to reclaim $68,000 after registering a significant slump on Friday, which took the price to a day low of $65,660 before a recovery. However, with sentiment changing over the weekend, market watchers are hopeful of a push to the $70,000 resistance level and potentially a new all-time high. BTC is showing potential for a substantial rally after finding support around the $65,000 and $66,000 levels, with the 20-day SMA acting as a dynamic level of support. We can also see sellers getting exhausted at lower levels, indicating that bulls are starting to gain the upper hand.
Data from CoinMarketCap shows that bearish pressure is giving way to bullish dominance as BTC makes a strong recovery after dipping to lows of below $66,000. BTC’s market cap has also surged past $1.3 trillion, reaffirming its position as the dominant asset in the crypto space. However, daily trading volume numbers suggest investors are still using a wait-and-watch approach, possibly holding off until a confirmed breakout above key resistance levels.
As we can see in the price chart, BTC’s price action over the past week was quite mixed, as sellers tried to push the price below key support levels but were thwarted. BTC dropped to a day low of $65,234 on Wednesday as selling pressure intensified. However, sellers could not push BTC below $65,000 as buyers entered the market, indicating strong support at this level. This helped BTC recover somewhat as buyers propped up the price, and the asset eventually settled at $66,649, a drop of 1.09% compared to Tuesday. However, BTC made a strong recovery on Thursday, registering an increase of 2.28% to go above $68,000 and settle at $68,187.
Source: TradingView
With sellers active at this level, BTC fell back into the red on Friday as bearish sentiment yanked the price back below $68,000 to a day low of $65,660. However, once again, sellers could not drive the price lower, thanks to strong support at this level. With buyers entering the market, BTC was able to push back above $66,000 and settle at $66,816, a decline of almost 2%. BTC remained positive over the weekend, registering an increase of 0.51% on Saturday and 1.22% on Sunday to settle at $67,972. The current session sees BTC marginally down as buyers and sellers look to establish control. BTC bulls will be looking to push the price above $68,000 and towards $70,000. On the other hand, sellers will look to drag BTC below $66,000. If BTC drops below this level, we could see a drop to $65,000 or the 50-day SMA.
Looking at a couple of technical indicators, the RSI is currently around 60, indicating that bulls have the upper hand. However, the MACD has just flipped to bearish, suggesting that we could see a decline in the short term.
Ethereum (ETH) Price Analysis
Ethereum (ETH) registered a substantial decline over the past week, slipping below key support levels as it dropped to a low of $2,381 on Friday. As we can see in the price chart, ETH started the previous week firmly in the red as bearish sentiment prevailed, dropping almost 3% to $2,666 on Monday. ETH continued to decline on Tuesday as it fell by 1.73% to $2,620. Bearish sentiment intensified as ETH slipped below the 20-day SMA, falling to a day low of $2,451 before settling at $2,522, also slipping below $2,600 after registering a decline of almost 4%. Buyers attempted to push back above the 20-day SMA on Thursday but could not do so, as ETH registered only a marginal increase and settled at $2,535.
Source: TradingView
Selling pressure intensified again on Friday as ETH slipped below $2,500, and the 50-day SMA dropped to a day low of $2,381. However, it was able to push back above $2,400 and settle at $2,438, ultimately registering a drop of $2,438. Market sentiment changed over the weekend as ETH registered an increase of 1.71% on Saturday and settled at $2,480. Sunday saw ETH climb back above $2,500 and the 50-day SMA thanks to an increase of 1.03%, which allowed it to settle at $2,520. Sellers attempted to push ETH back below $2,500 during the ongoing session, as ETH fell to a low of $2,470. However, it has since pushed back above $2,500 and the 50-day SMA and is currently trading at $2,519, up by 0.55%.
Buyers will look to maintain their current momentum and push ETH above $2,600. A break above this level could see ETH retest the resistance at $2,700-$2,750. Should ETH continue to go higher, a move to $2,850 cannot be ruled out. However, sellers will look to retake control and push ETH back below $2,500. In such a scenario, ETH could drop to $2,400.
Solana (SOL) Price Analysis
Solana’s recovery has stalled yet again as it fell back in the red during the ongoing session after failing to overcome the resistance at $180. As we can see in the price chart, SOL faced significant volatility over the previous week but remained above $160 despite sellers attempting to lower the price on Monday. SOL registered a marginal recovery on Tuesday before a jump of 1.96% on Wednesday allowed it to settle at $170. Bullish sentiment picked up on Thursday, with SOL registering an increase of almost 4% and moving to $177. However, bulls lost momentum thanks to strong resistance at $180. As a result, SOL registered a substantial drop of 6.97% and settled at $164, but not before dropping to a day low of $159.
Source: TradingView
Despite Friday’s substantial drop, SOL made a strong recovery over the weekend, registering an increase of 3.59% on Saturday and 3.41% on Sunday to push back above $170 and settle at $176. However, the current session sees SOL back in the red as sellers look to drive the price back below $170. If SOL does slip back below $170, it could drop to $160 before recovering. On the other hand, if buyers regain control, SOL could test the $180 resistance. A break above this level could open the door for a potential move to $200. As we can see in the chart, the MACD is currently bullish, indicating that buyers have the upper hand.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) made a strong recovery over the weekend, rebounding from the 200-day SMA after a substantial drop on Friday. Looking at the price chart, we can tell that DOGE faced significant volatility during the previous week as it struggled to push above $0.150. Despite reaching a day high of $0.149 on Monday, DOGE fell back on Tuesday, dropping by 2.30% after yet another volatile session and settling at $0.140. Sellers dragged DOGE to a low of $0.132 on Wednesday as it slipped below crucial support levels. However, with buyers entering the market at lower levels, DOGE ultimately settled at $0.140, registering only a marginal drop. Buyers pushed DOGE up by 1.29% on Thursday, with the popular meme coin settling at $0.141. However, it was back in the red on Friday, dropping by almost 7% to settle at $0.132 after going below key support levels.
Source: TradingView
DOGE recovered over the weekend as overall market sentiment picked up, registering an increase of 3.64% and settling at $0.136. Bullish sentiment persisted on Sunday as DOGE rose by 5.34% to push back above $0.140 and settle at $0.144. However, the current session sees DOGE back in the red, down by almost 1% and trading around $0.142.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has started yet another recovery, rebounding from its support level at $4 after registering a substantial decline on Friday, which saw the asset touch an intra-day low of $3.83. DOT spent almost all of last week firmly rooted in the red as bearish sentiment maintained a stranglehold over the asset after its failure to stay above $4.50. As a result, DOT registered a substantial drop of 4.38% on Monday, dropping to $4.37. Buyers attempted a recovery on Tuesday but were unsuccessful as sellers drove the price down by 1.14% to $4.32. Bearish sentiment intensified on Wednesday as DOT slipped below the 20 and 50-day SMAs after a drop of 2.55%, hitting an intra-day low of $4.10 before recovering and settling at $4.21.
Source: TradingView
DOT experienced intense volatility on Thursday as buyers attempted to push back above the 20-day SMA while sellers attempted to drag it toward $4. Ultimately, neither was successful, and DOT remained at $4.21. However, selling pressure intensified yet again on Friday as DOT fell below $4 on its way to a day low of $3.83. However, as we’ve seen before, DOT recovered from this level, ultimately settling at $3.99 after a substantial drop of 5.23%. DOT recovered over the weekend as buyers entered the market, allowing DOT to rebound from its support level and move to $4.03 after an increase of 1%. Buyers maintained momentum on Sunday, with DOT registering an increase of 2.48% to settle at $4.13. The current session sees DOT up by 1.21% and trading around $4.18 as buyers look to push DOT above the 20 and 50-day SMAs.
DOT has strong support at $4 and $3.62. If buyers can maintain the current upward momentum and push above the moving averages, we could see the price push back towards $4.50. Whether it can go above and sustain itself above this level remains to be seen.
Bittensor (TAO) Price Analysis
Bittensor (TAO) has continued to decline as buyers struggle to keep it above $500. TAO has been trading in a downward trajectory since mid-October, when it failed to push above $700 after a promising rally. TAO slipped below the 20-day SMA at the beginning of the previous week after a drop of 9.37%, which saw the asset settle at $547. Buyers attempted a recovery on Tuesday but were unsuccessful as TAO dropped by 0.74% and a further 2.80% on Wednesday to settle at $527. TAO recovered on Thursday, rising by 2.71% and settling at $542. However, bearish sentiment returned on Friday as TAO dropped over 10%, slipping below $500 and settling at $486.
Source: TradingView
TAO recovered over the weekend, registering an increase of 5.38% to push back above $500 and settle at $512. It then dropped marginally on Sunday to settle at $510. The current session sees TAO marginally down as sellers look to drive the price below $500 and the 50-day SMA.
Uniswap (UNI) Price Analysis
Uniswap (UNI) is struggling to recover and push back above $7.50 after registering a substantial decline on Friday, which dragged it below key support levels and moving averages. UNI experienced unprecedented volatility last week as it surged to a day high of $8.80 on Tuesday before settling at $7.99 after buyers lost momentum at upper levels. As a result, UNI dropped to a low of $7.47 on Wednesday before recovering and settling at $7.85 after a drop of 1.78%. Buyers returned to the market on Thursday as UNI rose by 2.38% to push above $8 and settle at $8.04.
Source: TradingView
However, bearish sentiment intensified on Friday as UNI dropped by almost 8%, slipping below the 20 and 200-day SMAs and settling at $7.42, but not before dropping to a day low of $7.18. Buyers attempted a recovery over the weekend as UNI surged to a high of $7.76 on Saturday. However, buyers could not maintain momentum, and the price fell back, registering only a marginal increase and settling at $7.43. UNI pushed back above $7.50 on Sunday, rising by 1.17% and settling at $7.52. However, the current session finds UNI back in the red, down by 0.65% and trading below $7.50 at $7.47. If sellers continue to maintain control, we could see the price slip below the 50-day SMA and drop to $7.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
