Written by Metal Team

On October 12, 2021

Market Report – October 12, 2021

Bitcoin (BTCUSD) (3-day/8-hour comparison)

Bitcoin bulls have officially taken control.  We got the High Timeframe candle closes above $50k, and went a good bit further to boot.  

Bitcoin was on such a tear that it was sucking the life out of most of the greater crypto market, with most ALT/BTC pairs losing a lot of ground.  

On our 3-day chart, it looks as if new ATH is on the horizon, but we are currently watching altcoins regain some ground against BTC as it cools down a bit.  Even with the rapid expansion to the upside, we’ve seen some healthy retests of support along the way when we zoom in on the 8-hour chart.  Some further consolidation may be needed before we continue to new highs, and many altcoins seem to be catching some market share as BTC retraces a bit.

Ethereum (ETHUSD) (3-day/8-hour comparison)

Through the entire move up this past week from Bitcoin, ETHUSD has sat rather flat, looking very sluggish as all eyes were pointed to the first mover. 

Now, as Bitcoin loses a little steam, we are seeing ETH pick up some momentum, appearing to be echoing BTC’s price action from the past few weeks.  ETH could be first in the race to a new ATH, as it holds $3400 support and capital appears to be flowing from BTC into other majors.

Fundamentals & Correlations (weekly)

Looking at the Bitcoin Dominance chart (BTC.D) we can see that it bounced off of support and is now falling a bit, evidence of capital rotating to other crypto markets. The US Dollar Index (DXY) is breaking out from our diagonal resistance, which could be contributing to BTC showing some weakness, if the dollar continues to gain momentum, we could see some price depreciation in crypto as a whole.  If the resistance holds, and DXY begins to retrace, we should see BTC gear up for another leg to the upside.

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