Weekly Cryptocurrency Market Brief

by Paul Choufani, 28th October 2021

Bitcoin (BTC) reached a new all-time high on October 20, 2021, marking a new phase of the current bull cycle. It has been a spectacular year for the premier asset in the cryptocurrency space, with its early spring rally before its summer correction and re-accumulation phase and the subsequent formation of successive higher highs and higher lows on the way to its current milestone. Sentiment has been increasingly positive, with more institutions entering the fray, the latest being payment giant Mastercard partnering with crypto firm Bakkt to bring cryptocurrency payments to its substantial client base. Over the past week, Bitcoin experienced a market dip from its all-time high at $66,930 to about $59,014 at the time of writing, and it is currently holding at this level. It remains to be seen whether the dip will continue or if it will consolidate in the $57-63k zone in the coming period.

1inch Network (1INCH) is a Decentralised Exchange (DEX) aggregator that works out the best crypto prices across DEX’s, in order to find users’ the cheapest prices and reroutes its users’ trades between various DEX’s to ensure that they’re getting the best prices. 1INCH experienced a massive surge today on October 27, 2021, almost doubling in price from $4 to $7.75 per token, which is only a few cents away from the all-time high it posted on May 8, 2021, at $7.87. It is currently holding above the Fibonacci golden ratio (61.8%) retracement level at $5.26, while forming a large wick on the daily chart, suggesting sizeable profit-taking by buyers. The rise in price came on the back of several months of consolidation of the DEX-based token in the $1.64-4.12 price zone. It is possible that 1inch Network would revisit the highs of today with the continuation of the current cryptocurrency bull market in the upcoming period.

Fantom (FTM) is a Smart Contract enabled Blockchain that enables development for DeFi, NFTs & dApp’s. FTM has continued its meteoric rise which it began in August 2021. The following month, it broke past its previous high at $0.98, and continued its surge after retesting this level. In October, it continued its rise in parabolic fashion, reaching about $3.5 per token on October 27, 2021. It has been one of the best-performing cryptocurrency assets in the current bull run, and it is possible that further gains could be made by this token during the current period in the market.

Polygon (MATIC) is a complete multi-chained system, a framework as well as a protocol. It connects Ethereum-compatible blockchain networks and is built to solve the scalability issues on the current Ethereum network. It is a layer 2 solution, i.e it works on top of Ethereum’s primary blockchain. MATIC has finally broken past the $1.63 resistance level over the past week, after several unsuccessful attempts to do so. Having taken out the previous local high of $1.87 from September 5, 2021, it would now look to target the next levels at $2.48 and $2.90 over the next few months. It had consolidated and formed very solid market structure in the past few months, namely after the cryptocurrency market crash in May 2021. It now promises to be a very exciting time for Polygon as we enter the next phase of the bull cycle.

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