The month of October can be considered one of the best in the history of Bitcoin (BTC) as several positive news caused the price of the largest cryptocurrency on the market to set a new all-time high at $ 67,000 and, for the first time, close the month above USD 60,000.
Furthermore, optimism with BTC led the crypto market to register new historical marks on various altcoins, strengthening the market as a whole. That is why the period was dubbed ‘Uptober’.
But for ChangeNOW analyst Mike Ermolaev, who believes that October was the best month of the year for cryptocurrencies, it is wrong because the increase in the period may be a ‘small chip’ close to what Moonvember should bring, which can see several cryptocurrencies. record earnings above 60%.
“October became the best month for BTC prices since December 2020, even topping the performance of the first quarter. BTC posted a 39.9% gain to end at $ 61,330 on the 31st, its first monthly close above the psychological limit. of USD 60,000 “. it contributes to the positive outlook for the cryptocurrency market, ”he said.
He notes that there is a relatively widespread new view that BTC prices and US stock prices are correlated. Given that November has traditionally been the best month for US equities, equities are likely to act as a catalyst for higher gains in bitcoin.
“As can be seen from the chart below, there is a positive correlation between the S&P 500 and BTC prices at some time intervals. Although the patterns don’t exactly repeat across the chart, there are certainly some common moves,” he notes.
Bitcoin price
Thus, according to him, taking into account the fundamentals of the Bitcoin network, this week will be the eighth in a row in which there is a positive difficulty adjustment, something that has not happened since 2018.
Furthermore, it notes that the hash rate continues to trend towards new highs. Currently, the average hash rate stands at around 159 EH / s, closer than ever to the record of 180 EH / s in April, when we still had China as the world’s largest Bitcoin mining center.
He also notes that according to popular network analyst Willy Woo, the cryptocurrency’s bull streak could extend into 2022 due to large numbers of long-term Bitcoin holders creating buying pressure for BTC.
“We are at that point where all the new types that they bought during the first half of this year are now long-term holders and are peaking. They are providing the necessary bolt for us to get to the six-figure level.” , he says, citing the analyst.
Ermolaev also highlights an analysis by Matthew Hyland, based on the Bollinger Bands indicator, which states that a big movement in the price of BTC could soon take place. This year the same thing has already happened every time the bands have pushed so hard.
“My view is that resistance at $ 65,000 should limit any short-term rise in Bitcoin, but a sustained breakout could push bitcoin to test resistance at $ 70,000 and beyond,” he says.
Altcoins to take into account in the month
In the altcoin market, for his part, the analyst points out that the month will have them as protagonists, since the weekly closing confirmed the RSI break that began in February.
“We are currently at $ 1.47 trillion in the altcoin market and everything indicates that this market capitalization is about to increase,” he says.
In this context, its first indication for the month is Ethereum (ETH), as the second largest cryptocurrency in the world by market capitalization, it reached a new all-time high price when it rose to more than $ 4,400, a level that was not seen. since May, when it hit its previous record of $ 4,379.
In addition, it highlights that ETH managed to surpass bitcoin, registering a monthly gain of 42.93% for the month of October.
“ETH quickly rebounded from last week’s brief correction, staying above the $ 3,969 support level. On the daily time frame, the RSI is hovering below 70 points, suggesting a bullish bias, with ETH heading toward his psychological level of $ 5,000, “he says.
Another cryptocurrency on analysts ‘list is memecoin Shiba Inu (SHIB), a rare indication on analysts’ monthly charts due to its high price volatility and “weak” appeal to use, as is the case with crypto-oriented cryptocurrencies. smart contracts such as Ethereum, Solana (SOL), Cardano (ADA), among others.
However, the analyst notes that SHIB’s monthly gain of 828% made it the best performing cryptocurrency in October and this cannot be ignored.
In addition, the expectation with listings on Kraken and Robinhood can trigger an effect on other exchanges and sustain the price of the peptoactive on the rise since its value depends on the hype and the FUD.
Polkadot, Stellar, Sandbox and Descentraland
The analyst also highlights Polkadot (DOT), as its parachain auctions will begin in November. Parachains allow the Polkadot network to perform parallel transaction processing and achieve scalability while sharing network security.
“Polkadot has grown exclusively recently, establishing itself as the eighth largest cryptocurrency in terms of market capitalization. For the month of October, the DOT price has advanced 49.35% to trade at $ 49.12 at time of writing, a high of 14.9. % this week, “he says.
Meanwhile, another good performance in October came from Stellar (XLM), which posted a 33.9% monthly gain to close at $ 0.37328 on October 31.
“November is a good time to follow Stellar closely, even more so when it recently announced a partnership with MoneyGram, one of the largest money transfer services in the world,” he said.
He also points out that virtual worlds are becoming more and more popular and, for him, a cryptocurrency is a perfect form of payment in these metaverses.
So their choice for the month falls on both the Sandbox (SAND) in which they can build, own, monetize their gaming experiences, and create NFTs and for Descentraland’s Ethereum-based token, MANA, which also allows users to create, experiment and monetize content and applications.
Decentraland rose more than 300% in October, hitting an all-time high of $ 4.69 on October 31. Since the beginning of the year, the MANA price has witnessed many upward movements, each one higher than the last.
SAND gained an impressive 105.8% in October, currently trading at $ 2.72 per SAND, an increase of 64.20% in the last 24 hours.
“Based on ongoing developments in the cryptocurrency space and strong technical indicators favoring an uptrend, the uptrend is likely to continue throughout the year, with the price of BTC possibly breaking its highest high, at the minus one or more probably two or three times.
Altcoins tend to follow in the footsteps of bitcoin, with the bullish momentum in BTC catalyzing a bull run towards other ‘cryptocurrencies’. That is what we are currently seeing: Ethereum, Polkadot, Solana, Dogecoin, Shiba Inu and others, all are on their way or have already surpassed their highs, “he concludes.
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