Cryptocurrency market analysis [October 31]
Practical Cryptocurrency Investment Article — October 31
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【Cryptocurrency Market Analysis】
From last week, the price changes of cryptocurrencies
over the past week are summarized as follows
Summary: current price (change from one week ago)
※
From now on, prices are shown in dollars.
（Cryptocurrencies often rely on overseas information, so dollar-denominated figures are easier to express）
※1149
Bitcoin dollars (％)
Ethereum）
Binance Coin dollars％）
Ripple dollars（％）
Solana36(13%)
Cardano dollars（）
MATIC 0.62(-3%)
Avalanche(4%)
Uniswap dollars（）
Bitcoin had a sharp surge the week before last, and its price has remained at that level since then.
Bitcoin Daily Chart
From the current view of Bitcoin’s price,
break above the target price of 32,000 dollars (the May last year level)
above
break above the 200-day moving average
Even after such a swift rise, it is maintaining that price now.
On the daily chart, prices are converging more and more, and we are watching whether they will dip once and bounce at the upper end of the range around 32,000 dollars.
The weekly chart analysis is as follows.
Weekly chart
・Break above the 200-day moving average (orange line)
Looking at the weekly chart, the current price zone lies on a line where prices have repeatedly collided since 2021. (circled in red)
This line is commonly watched in technical analysis, and if the price moves above this zone, the previous bubble high (750万円) comes into view.
The big surge two weeks ago was related to BitcoinETFwith BlackRock buying BTC, creating expectations, but at present, predictions suggest approval could come around Christmas or January.
However, until nowexpectations have been raised many times, and each time have been denied by the, so I am viewing things with caution.
Gabor Gurbacs— Strategy Advisor at the U.S. asset management giantVanEck,statedon29
He suggested that continued immigration influx, capital investment, and general economic growth could make El Salvador a central financial economy.
ーーーーー
El Salvador is a small country south of Mexico, and it was the first in the world to adopt Bitcoin as legal tender.
Currently, the official legal tender in El Salvador is the dollar and Bitcoin.
Regarding Bitcoin, there is currently a 15% unrealized loss, but regular contributions are being made.
Also famous is Bitcoin mining using geothermal energy, which earns Bitcoin as income, creating additional revenue opportunities.
The article mentions that security is good, but that is probably not true. The country’s currency value has fallen significantly, and as the country uses the dollar as legal tender, the country itself is poor, which may contribute to higher crime and poorer security in some respects.
Nevertheless, as the assets held as Bitcoin increase in the future, there is potential for economic independence, and it will be interesting to see how the country changes in that case—whether crime decreases and education spreads.
Also, because El Salvador offers favorable tax treatment for cryptocurrencies, attention is drawn to its progress including blockchain company expansion.
Ethereum’s “Deneken” upgrade — Goldman Sachs
The Denckun (Dencun) upgrade is expected in2024Q1, and this will be a next step toward making the blockchain a scalable payment layer, according to Goldman Sachs Goldman Sachsin a10month report.
https://www.coindeskjapan.com/206555/?utm_source=twitter&utm_medium=ifttt
This upgrade, focused on increasing transaction processing speed as a payment layer, is followed by the important “Dencken” upgrade as a precursor, as reported by Goldman Sachs.
Currently, Layer 2 solutions are spreading rapidly for Ethereum transactions, and transferring from Ethereum’s L1 to L2 for trading improves fees and processing speed.
The “Surge” is an upgrade to L1 itself, and it aims to raise the per-second transaction capacity (TPS) from about 10-15 TPS to 100,000.
Ethereum upgrades are very important; in 2023 staking was introduced, allowing returns by depositing Ethereum. There were measures to limit issuance over years, and with future capital inflows, Ethereum’s performance will be closely watched.
Ethereum has become the center of the cryptocurrency ecosystem, and many projects revolve around it, so it will significantly influence future market trends.
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(This article has been distributed since 2016)
