Bitcoin and Ethereum Price Prediction – Is BTC About to Surge 100% This Month?
On October 25, the Bitcoin price showed a slight bearish correction after getting rejected at the $19,700 resistance mark. In contrast, Ethereum is consolidating in a narrow trading range of $1,335 to $1,360.
Major cryptocurrencies were trading sideways, maintaining narrow trading ranges, with a global crypto market cap of $931 billion and a trading volume of $513 billion. Let’s take a look at the top winners and losers so far today.
Top Altcoin Gainers and Losers
The top performers in the Asian session were Klaytn (KLAY), Axie Infinity (AXS), and Toncoin (TON). Klaytn (KLAY) is up more than 11% to $0.20, while AXS is up nearly 6% to $9.20. At the same time, TON has surged more than 5% to trade at $1.49 in the last 24 hours.
In the last 24 hours, the price of The Trust Wallet Token (TWT) has plunged more than 5% to $1.04. The price of Aave (AAVE) has dropped more than 4% to around $83.
Bitcoin vs. Stocks – Positive Correlation to Drive Uptrend in BTC
For the most part of this year, bitcoin has moved in lockstep with the stock market. However, risky asset prices have fallen since the Federal Reserve tightened monetary conditions as part of a strategy to combat skyrocketing inflation.
According to research released this week by cryptocurrency data provider Kaiko, Bitcoin’s 20-day realized volatility, a measure of daily price fluctuations, has fallen below the levels of both the Nasdaq and the S&P 500 for the first time in two years.
"Bitcoin's correlation with stocks has turned higher than that between stocks and assets such as gold, investment grade bonds, and major currencies, pointing to limited risk diversification benefits in contrast to what was initially perceived." #IMFblog https://t.co/0EhROZfX88 https://t.co/Bgn2QZVJxD
— Gita Gopinath (@GitaGopinath) January 11, 2022
Bitcoin has been less volatile than the Nasdaq for the first time since October 2020. Furthermore, the correlation between bitcoin and stocks has reached an all-time low. The strong correlation has recently weakened, and experts in digital assets are speculating that cryptocurrencies may be decoupling from stocks. Furthermore, due to decoupling, BTC did not rise as much as stocks did last week.
According to Arcane Research, the 30-day correlation between $BTC and U.S. stocks has stabilized at about 0.7 over the past five weeks. BTC's correlation to gold is at a multi-year high, and BTC's 30-day correlation to the U.S. dollar index has dropped to -0.64. #Bitcoin pic.twitter.com/q5DGyLEK0V
— NekoZ (@NekozTek) October 20, 2022
However, Bitcoin’s correlation with stocks is re-stabilizing, which may drive an uptrend in BTC if the stock market continues to rise. If there is a positive correlation between BTC and stocks, it is possible that it will rise again.
Fed Pivot May Continue to Be Dovish
During their November meeting, Federal Reserve officials will likely discuss whether and how to announce plans to approve a smaller interest rate increase in December. They will see another 75 basis point increase in interest rates.
The Wall Street Journal published an article by Nick Timiraos, CEO and founder of Reventure Consulting, on October 21. Timiraos is known on Wall Street as the Fed Whisperer, the reporter to whom the central bank turns when it needs to convey a message.
"I think the time is now to start talking about stepping down. The time is now to start planning for stepping down," said San Francisco Fed President Mary Daly during a talk at the University of California, Berkeley on Friday. https://t.co/vPMSXDAKN8
— Nick Timiraos (@NickTimiraos) October 22, 2022
In his most recent writing, he predicts that the Fed will raise interest rates by three-quarters of a point following its November 2 meeting.
According to Timiraos, the Fed is divided, with some members concerned about further rate increases to combat inflation. Some policymakers also want to pause rate hikes in the first quarter of the following year to monitor the effects of their actions on the economy and reduce the risk of an unusually sudden downturn.
The Fed is barreling towards a fourth straight 75-basis-point rate rise at the November FOMC meeting.
— Nick Timiraos (@NickTimiraos) October 21, 2022
⁰That meeting could serve as a critical staging ground for future plans, including whether and how to step down to 50 basis points in December https://t.co/vPMSXDjHL8
The Fed ignored this year’s rapid inflation for most of 2021 and the first few months of this year, but it has begun to make up for lost time since March. Jerome Powell, the Fed’s chairman, now appears to be able to ease off the gas pedal, if only slightly.
Bitcoin’s optimistic recovery demonstrates that the article benefits the markets and forces the safe-haven US dollar to surrender some of its intraday gains.
Bitcoin Price
Bitcoin is worth $19,339, with a 24-hour trading volume of $27 billion. In the last 24 hours, Bitcoin has been consolidating in a narrow range, with nearly 0% gains and losses. BTC’s live market is worth $370 billion, and CoinMarketCap presently ranks top.
On Tuesday, the BTC/USD broke the symmetrical triangle pattern at $19,250, and that level is now expected to act as major support. A bullish crossover above this level can drive an uptrend until the $19,650 level, and a bullish crossover above this level can lead BTC to $19,950.
Bulls may dominate the market if the symmetrical triangle’s bullish breakout results in an uptrend continuation. The MACD and RSI are both in a buying zone, indicating a bullish trend.
Consider remaining bullish over the $19,200 support level today. On the downside, a break below $19,200 may allow for more selling until $18,950 or $18.650. Bitcoin may not surge 100% this month, but there’s huge upside potential following the symmetrical triangle’s breakout.
Ethereum Price
The current price of Ethereum is $1,344, with a $12 billion 24-hour trading volume. Ethereum is also tossing profits and losses, showing almost a 0% gain in the last 24 hours. CoinMarketCap, on the other hand, now ranks ETH second, with a live market cap of $164 billion.
On the technical front, the ETH/USD pair has broken above an ascending triangle pattern. Following its rejection at $1,365, Ethereum is once again in a downtrend and is likely to find immediate support near $1,340, the double-bottom area.
Near the psychological trading level of $1,300, the 50-day moving average is now likely to provide additional support.
On the upside, Ethereum’s major resistance levels remain at $1,360 and $1,384. At over $1,340 today, the bullish bias remains strong.
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