Weekly Cryptocurrency Market Brief

by Paul Choufani, 5th October 2021

Bitcoin (BTC) has maintained its bullish structure over the past week, forming a double bottom with the support at $40.6k, and breaking upwards past the psychological resistance at $50k, and towards the last high at about $53k. In doing so, it has surged past the 200-day Moving Average (MA), a traditionally important reference level for Bitcoin. Positive sentiment has gripped the cryptocurrency market, especially with the impending adoption of Bitcoin as legal tender in Brazil, and that has reflected in the price action of altcoins as well.

Frontier (FRONT) broke out of the falling wedge it had formed during the month of September; despite its bullish move, it bounced back off the 200-day MA at about $1.5 per token on October 5, 2021, and is currently trading in the $1.3-1.4 range. The $1.5 level represents a strong historical resistance for the asset, and should it succeed in breaking past this level, it would target the previous highs at about $2 per token.

Reserve Rights (RSR) also broke out of a falling wedge it had formed since August. Currently trading in the $0.032-0.038 range, it would aim to reach the previous highs at about $0.050 per token. A break above that level would be especially significant, as it would look to target the highs reached in May, at about $0.10. The volume of the breakout has been relatively low, and this would need to increase significantly should there be a surge past the $0.050 level in the coming period.

Axie Infinity (AXS) surged to new highs over the past few days, reaching $160 per token on October 4, 2021. It has more than tripled in price from its September lows, at just under the $50 level, where it fell on September 21, 2021. Despite some corrections and consolidation patterns, it has shown no signs of slowing down since the beginning of its current run in June, when it was trading in the $3-5 range. It will be interesting to see for how long Axie Infinity can maintain its current form and the new highs it could reach during this bull cycle.

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