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Week of November 5-11, 2024
The Bitcoin Volatility Index (DVOL), created by Deribit, has surged to its highest level since late July, reaching 63.24%. The main reason for this increase is the market volatility ahead of the U.S. presidential election.
10X Research indicates that Bitcoin’s price could soar to $100,000 by January 2025, based on buy signals derived from the company's analysis, and the Bitcoin Dominance Index reaching 60%, which is helping to drive the price. However, Ethereum (ETH) is still lacking positive returns due to a lack of new developments.
CryptoQuant reveals that in 2024, institutional investors are showing more interest than retail investors in Bitcoin. This aligns with the frequency of the search term "Bitcoin" on Google, which currently stands at 23 searches compared to its peak of 100 achieved in late May 2021, a significant difference.
Bitwise believes Bitcoin could reach $200,000 as a store of value, given that its current market value is only 7% of the $18 trillion gold market. If Bitcoin’s market share rises to 25%, its price could hit $200,000. The U.S. public debt crisis is seen as a key factor driving this price increase.
21Shares has applied for approval to launch a Spot XRP ETF with the U.S. SEC, which will be listed and traded on the Cboe BZX Exchange, with Coinbase Custody Trust serving as the asset custodian. Additionally, VanEck, 21Shares, and Canary Capital have filed their Spot Solana ETF registrations.
MicroStrategy has revealed its “21/21 Plan”, aiming to raise $42 billion within 3 years, consisting of $21 billion in equity and $21 billion in debt, to support increasing its Bitcoin holdings from about 252,220 BTC (valued at $16 billion) as of late September.
Technical Analysis
Bitcoin (BTC)
Bitcoin (BTC) has been consolidating throughout the week, but its short-term trend still remains bullish. Watch for the support at $66,500. If this level holds, Bitcoin could continue its upward momentum and test its previous high of $74,000. However, if it falls below this level, the short-term bullish momentum will be lost.
- Support: 2,160,000 THB / 66,500 USD
- Resistance: 2,560,000 THB / 74,000 USD
Ethereum (ETH)
Ethereum (ETH) has pulled back to a short-term support level at $2,400. If this level fails to hold, the price could drop further to test the previous low at $2,100. However, if it manages to hold above $2,400, Ethereum could recover and target the next resistance level at $2,850, and potentially reversing towards a bullish trend.
- Support: 74,000 THB / 2,100 USD
- Resistance: 96,000 THB / 2,850 USD
Sui (SUI)
Sui (SUI) delivered 13.09% returns last week, and is on a strong bullish trend. The recommended trading strategy is to buy on dips, with the first entry point at $1.60. If this level holds, Sui could recover and test its previous resistance level at $2.37, which marks the previous high.
- Support: 55 THB / 1.60 USD
- Resistance: 80 THB / 2.37 USD
Maker (MKR)
Maker (MKR) posted 6.76% returns last week, although the overall trend still looks bearish, requiring increased caution. If the price drops below the previous low of $500, it may be necessary to start cutting losses. However, if the price manages to hold above this level, there is a chance for a reversal, with the first resistance target at $1,800.
- Support: 35,000 THB / 500 USD
- Resistance: 48,000 THB / 1,800 USD
Investment Trends
Bitcoin (BTC) delivered 14% returns in October. While it still hasn't managed to reach a new all-time high yet, the bullish trend continues. This momentum has mostly been supported by consistent buying activity via the Spot Bitcoin ETFs. This week, expect market volatility due to the U.S. presidential election, which remains one of the most closely contested in recent history. Market watchers are also anticipating the upcoming Federal Open Market Committee (FOMC) meeting, where analysts anticipate a 0.25% interest rate cut.
The earnings reports from most tech companies have been released, and concerns are growing as major companies are predicting slower growth in the next quarter. This could lead to a pullback in the U.S. equities market, which would also impact cryptocurrency prices.
The Bitcoin Dominance Index has been rising steadily, putting pressure on altcoin prices. However, this is seen as an opportunity to accumulate coins with strong growth potential, particularly in the Blockchain Layer 1 space, including Ethereum (ETH).
Despite the ongoing market volatility, it's expected that after the U.S. elections, the market will experience less fluctuations and could begin to stabilize again. If Kamala Harris wins, Bitcoin may see a short-term dip as markets react negatively to the election results. On the other hand, if Donald Trump wins, there might be a "Sell the Fact" reaction before the market recovers. The recommended trading strategy is to wait for price dips and buy on weaknesses (Buy On Dip).
References
- https://www.coindesk.com/markets/2024/11/03/bitcoin-volatility-jumps-to-3-month-high-ahead-of-us-election/
- https://cointelegraph.com/news/bitcoin-btc-price-target-100000-by-jan-2025-10x-research
- https://cointelegraph.com/news/bitcoin-near-new-all-time-high-low-retail-investor-interest-ai
- https://cryptoslate.com/bitcoin-could-hit-200000-without-dollar-collapse-bitwise-cio/
- https://cointelegraph.com/news/xrp-etf-21shares-sec-listing-trading
- https://www.theblock.co/post/323817/microstrategy-announces-plan-to-raise-42-billion-to-buy-more-bitcoin
Disclaimers
- Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
- Past returns or performance of digital assets do not guarantee future returns or performance.
Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.