Weekly Cryptocurrency Market Brief

by Paul Choufani, 20th October 2021

Bitcoin (BTC) has continued its ascendancy while forming a rising wedge pattern and is on the cusp of breaking its all-time high at the time of writing. Positive sentiment has gripped the market amidst the launch of the first Bitcoin ETF in the United States. The debut of the Bitcoin ETF by ProShares on the New York Stock Exchange is expected to be the first of many, as several ETFs are set to be traded in the markets in the upcoming period. On the other hand, the Altcoin market has yet to fully take off, despite recent good performances for some tokens. Notably, during the past few weeks, exchange tokens have been among the best performers in the cryptocurrency market.

Gate Token (GT) has undergone an approximate 25% increase over the past week, after forming successive higher lows and breaking the resistance level at $4.34 on October 17, 2021. It had formed healthy market structure during its re-accumulation period in the summer and after the cryptocurrency market crash in September 2021. It still needs to break and hold above the strong resistance zone in the $4.80-5.20 range if it were to reach the highs of early September and mid-May 2021.

KuCoin Token (KCS) has also made considerable gains over the past month, after holding above the critical support level at $9.6 in late September and early October 2021. Having formed an inverse head-and-shoulder pattern and breaking above it with a retest of the $12.6 neckline, it rose to above $14 per token on October 19, 2021. The virtual asset has considerable distance to go in order to reach its highs of April 2021, as it needs to overcome resistance levels at $14.4, $15 and $15.7 before continuing its bullish movement in the market.

Binance Coin (BNB) has also performed very well over the past few weeks, surging from its last local bottom at about $320 in late September, to reach $520 on October 15, 2021. Currently trading in the $460-515 range, it needs to break and hold above the $510 level in order to target the $700 which it reached in May 2021. Ever since the market crash in May, it has formed successive higher lows amidst a solid market structure being built, and thus could be primed to be one of the best performers in the current cryptocurrency bull market.

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