The United States may soon increase its exposure to digital assets, and the NYSE has just invested heavily in blockchain-based prediction markets. Bitcoin may be preparing for a correction after the new ATH!
The hottest news from the cryptocurrency market
- Crypto-friendly U.S. Senator Cynthia Lummis confirmed that fundraising for the U.S. Strategic Bitcoin Reserve could “begin at any time.” This is definitely bullish news, which favors further growth in the cryptocurrency market in Q4 this year.
- Intercontinental Exchange, owner of the New York Stock Exchange, announced on Tuesday a strategic investment in Polymarket, a decentralized predictive markets platform. This is the loudest signal that traditional financial institutions are taking the DeFi space more and more seriously.
- Matter Labs has released the Atlas update for ZKsync, which is expected to attract financial institutions with performance of up to 25,000 transactions per second and verification in less than one second. The upgrade focuses on three pillars: transaction speed, instant transaction proof, and cross-chain interoperability. The update confirms the unwavering interest of large financial institutions and VCs in the cryptocurrency market and blockchain technology.
- The Sui ecosystem is expanding its offer with two native stablecoins, which are scheduled to debut in the fourth quarter of this year. The project is being developed in cooperation with the specialized stablecoin issuer Ethena and the company managing the Sui treasury – Sui Group Holdings. This news indicates that it is still worth looking at projects related to stablecoins and RWA.
- Wall Street reminded everyone who rules the BTC ETF segment. BlackRock has shown once again that when a giant moves, the earth shakes. Record inflows (the largest since Trump’s election) show that investing in BTC on Wall Street is becoming more and more popular. And the higher the rate, the stronger this trend will become. The fact that inflows into ETFs are not slowing down gives us final confirmation this week that institutions are still on board.
What does on-chain data tell us about the condition of the market?
Bitcoin has started clearing the liquidation zone heading towards support at $117,000 – $119,000. A correction of 4% after reaching the new ATH is highly recommended, and from there it will be possible to trade BTC up locally.
DYOR
Technical analysis of BTC, ETH and DOT
This week, as always, I’m looking at BTC, ETH and the Polkadot token (DOT), the native token of the Polkadot blockchain.
Bitcoin
Bitcoin, according to the on-chain data presented earlier, is heading towards support in the zone of USD 117,000 – 119,000. This level coincides with the medium-term trend line, which has so far responded exemplarily to its testing.
BTC shows strength after reacting in the $108,000 zone to new all-time highs. Previously analyzed news indicates that institutional interest will push it even higher in the last quarter of this year. Moreover, October is historically a favorable month for cryptocurrencies.
Ethereum
Ethereum recorded a new ATH not so long ago and is bouncing from the local resistance zone for the fourth time. Therefore, it shows weakness towards BTC, which has successfully managed to set new historical highs in recent days.
Ether is currently heading for a correction to the first significant support zone marked in the graphic below, i.e. the level of USD 3,900 – USD 4,100, from which you can potentially look for longs towards the new All Time High.
The screenshot below comes from the period before the analysis, when Ether recorded a rebound of over 2% from the designated gray zone, which was an attractive scalp move.
Polkadot
Polkadot achieved success in 2021, during the first such a large bull market in the cryptocurrency market.
Since then, the DOT token has dropped significantly from levels above USD 50 to the current ~USD 4, moving in a narrow price channel since 2022. The Polkadot project is particularly active within the Chinese cryptocurrency community, which is both a blessing and a curse. On the one hand, the local crypto community is very committed and innovative, but on the other hand, the movements of the local authorities have been effectively blocking cryptocurrency innovations for a long time.
Currently, DOT is in an ideal place to take a position (as indicated by the lower band of the channel and the POC line determined from PVP), and the potential profit of this move over several weeks is 150%. However, this is a highly speculative position due to the fact that we do not know the further moves of the Chinese authorities regarding digital assets.
This week’s analysis indicates an upcoming local correction after BTC gains new ATH and bitcoin’s dominance declines. The fourth quarter of this year, as indicated by news and geopolitical events, promises to be optimistic, just like last year’s.
In the case of tokens such as DOT, each investor must decide for himself whether he is ready for a highly speculative position, the success of which is not guaranteed, and in this case the speculation is based on unlocking the cryptocurrency market in China.
The article does not constitute investment advice. For more interesting analyzes be sure to follow our social media!
