Why MATIC needs Ethereum to pump, now more than ever

A large number of coins followed in the footsteps of Bitcoin and joined yesterday. However, when the real coin price took a break and started to “cool down” around $ 62k, most of the highs took a step back.

However, MATIC remained the only alternative [apart from NU] of the top 100 that continued to reflect two-digit 24-hour appreciation numbers even as of this writing.

After witnessing its own part of consolidation in recent months, MATIC finally changed its "consolidation" narrative yesterday by recording a massive green candle on its price chart. After opening at $ 1.2 on Friday, MATIC managed to close around $ 1.6, a level last seen on September 7.

The Ethereum-MATIC link

MATIC has followed in the footsteps of Ethereum during most of the uptrend / downtrend phases. Consider this: In May, when Ethereum was creating new highs on a daily basis, MATIC rallied 350% [from $ 0.6 to over $ 2.7] in just two weeks. In particular, during that same period, Bitcoin was trending down on its price chart.

However, Ethereum development has managed to notice an increase of less than 1% during the last day. Therefore, it can be argued that the relationship that MATIC shares with ETH is gradually fading.

Although the aforementioned argument may seem true for now, it should be noted that it will not hold up in the long run.

The X factor

MATIC's recent listing on the South Korean exchange Upbit managed to trigger the alt surge this time around. In the last 24 hours, MATIC recorded a trading volume of $ 1,870,086,050 - equivalent to 28.73% of the total volume of the exchange.

The tokens are not listed on the daily exchange. But whenever they are, they end up feeding the price of any asset. Therefore, without this event, the price of MATIC would not have been able to take such high steps in such a short time.

Eventually, accumulated withdrawal transactions [from exchanges] yesterday hit a 4-month high and the reading for this metric topped 13k. For context, an increase in withdrawal transactions implies that the accumulation trend is in play, while a fall indicates the opposite.

However, the increase was short-lived and the aforementioned level could not be sustained for long. The attached chart below clearly highlights how the transaction count witnessed a free fall. In fact, at the time of this writing, the same had returned to its 6-month lows.

Fundamentals

However, the divergence of DAA prices has been increasing lately. According to Santiment's chart, it has been projecting a strong bullish signal since the end of last month.

This model, as such, tracks the relationship between the price of the coin and the number of daily active addresses that interact with the coin. A buy signal is indicated with the DAA divergence increases along with the price. On the contrary, when active addresses decline during a price rise phase, selling pressure is induced.

MATIC being able to maintain its bullish streak on this chart, only indicates the healthy state of the active directions. Indeed, the environment is quite favorable to sustain the MATIC rally.

Note

The Upbit hype would eventually fade over time, but the fundamentals of the token and its relationship with Ethereum would continue to have a commanding impact on its price.

Therefore, if Ethereum development recovers from this point, the price of MATIC can be expected to move in tandem. The ripple effect of the same would see currency withdrawals record another rally and the build-up narrative would again gain traction.

However, if that doesn't happen, MATIC's price increase phase could end up being momentary.

Why MATIC needs Ethereum to pump, now more than ever

A large number of coins followed in the footsteps of Bitcoin and joined yesterday. However, when the real coin price took a break and started to “cool down” around $ 62k, most of the highs took a step back.

However, MATIC remained the only alternative [apart from NU] of the top 100 that continued to reflect two-digit 24-hour appreciation numbers even as of this writing.

After witnessing its own part of consolidation in recent months, MATIC finally changed its "consolidation" narrative yesterday by recording a massive green candle on its price chart. After opening at $ 1.2 on Friday, MATIC managed to close around $ 1.6, a level last seen on September 7.

The Ethereum-MATIC link

MATIC has followed in the footsteps of Ethereum during most of the uptrend / downtrend phases. Consider this: In May, when Ethereum was creating new highs on a daily basis, MATIC rallied 350% [from $ 0.6 to over $ 2.7] in just two weeks. In particular, during that same period, Bitcoin was trending down on its price chart.

However, Ethereum development has managed to notice an increase of less than 1% during the last day. Therefore, it can be argued that the relationship that MATIC shares with ETH is gradually fading.

Although the aforementioned argument may seem true for now, it should be noted that it will not hold up in the long run.

The X factor

MATIC's recent listing on the South Korean exchange Upbit managed to trigger the alt surge this time around. In the last 24 hours, MATIC recorded a trading volume of $ 1,870,086,050 - equivalent to 28.73% of the total volume of the exchange.

The tokens are not listed on the daily exchange. But whenever they are, they end up feeding the price of any asset. Therefore, without this event, the price of MATIC would not have been able to take such high steps in such a short time.

Eventually, accumulated withdrawal transactions [from exchanges] yesterday hit a 4-month high and the reading for this metric topped 13k. For context, an increase in withdrawal transactions implies that the accumulation trend is in play, while a fall indicates the opposite.

However, the increase was short-lived and the aforementioned level could not be sustained for long. The attached chart below clearly highlights how the transaction count witnessed a free fall. In fact, at the time of this writing, the same had returned to its 6-month lows.

Fundamentals

However, the divergence of DAA prices has been increasing lately. According to Santiment's chart, it has been projecting a strong bullish signal since the end of last month.

This model, as such, tracks the relationship between the price of the coin and the number of daily active addresses that interact with the coin. A buy signal is indicated with the DAA divergence increases along with the price. On the contrary, when active addresses decline during a price rise phase, selling pressure is induced.

MATIC being able to maintain its bullish streak on this chart, only indicates the healthy state of the active directions. Indeed, the environment is quite favorable to sustain the MATIC rally.

Note

The Upbit hype would eventually fade over time, but the fundamentals of the token and its relationship with Ethereum would continue to have a commanding impact on its price.

Therefore, if Ethereum development recovers from this point, the price of MATIC can be expected to move in tandem. The ripple effect of the same would see currency withdrawals record another rally and the build-up narrative would again gain traction.

However, if that doesn't happen, MATIC's price increase phase could end up being momentary.

Why MATIC needs Ethereum to pump, now more than ever

A large number of coins followed in the footsteps of Bitcoin and joined yesterday. However, when the real coin price took a break and started to “cool down” around $ 62k, most of the highs took a step back.

However, MATIC remained the only alternative [apart from NU] of the top 100 that continued to reflect two-digit 24-hour appreciation numbers even as of this writing.

After witnessing its own part of consolidation in recent months, MATIC finally changed its "consolidation" narrative yesterday by recording a massive green candle on its price chart. After opening at $ 1.2 on Friday, MATIC managed to close around $ 1.6, a level last seen on September 7.

The Ethereum-MATIC link

MATIC has followed in the footsteps of Ethereum during most of the uptrend / downtrend phases. Consider this: In May, when Ethereum was creating new highs on a daily basis, MATIC rallied 350% [from $ 0.6 to over $ 2.7] in just two weeks. In particular, during that same period, Bitcoin was trending down on its price chart.

However, Ethereum development has managed to notice an increase of less than 1% during the last day. Therefore, it can be argued that the relationship that MATIC shares with ETH is gradually fading.

Although the aforementioned argument may seem true for now, it should be noted that it will not hold up in the long run.

The X factor

MATIC's recent listing on the South Korean exchange Upbit managed to trigger the alt surge this time around. In the last 24 hours, MATIC recorded a trading volume of $ 1,870,086,050 - equivalent to 28.73% of the total volume of the exchange.

The tokens are not listed on the daily exchange. But whenever they are, they end up feeding the price of any asset. Therefore, without this event, the price of MATIC would not have been able to take such high steps in such a short time.

Eventually, accumulated withdrawal transactions [from exchanges] yesterday hit a 4-month high and the reading for this metric topped 13k. For context, an increase in withdrawal transactions implies that the accumulation trend is in play, while a fall indicates the opposite.

However, the increase was short-lived and the aforementioned level could not be sustained for long. The attached chart below clearly highlights how the transaction count witnessed a free fall. In fact, at the time of this writing, the same had returned to its 6-month lows.

Fundamentals

However, the divergence of DAA prices has been increasing lately. According to Santiment's chart, it has been projecting a strong bullish signal since the end of last month.

This model, as such, tracks the relationship between the price of the coin and the number of daily active addresses that interact with the coin. A buy signal is indicated with the DAA divergence increases along with the price. On the contrary, when active addresses decline during a price rise phase, selling pressure is induced.

MATIC being able to maintain its bullish streak on this chart, only indicates the healthy state of the active directions. Indeed, the environment is quite favorable to sustain the MATIC rally.

Note

The Upbit hype would eventually fade over time, but the fundamentals of the token and its relationship with Ethereum would continue to have a commanding impact on its price.

Therefore, if Ethereum development recovers from this point, the price of MATIC can be expected to move in tandem. The ripple effect of the same would see currency withdrawals record another rally and the build-up narrative would again gain traction.

However, if that doesn't happen, MATIC's price increase phase could end up being momentary.

Why MATIC needs Ethereum to pump, now more than ever

A large number of coins followed in the footsteps of Bitcoin and joined yesterday. However, when the real coin price took a break and started to “cool down” around $ 62k, most of the highs took a step back.

However, MATIC remained the only alternative [apart from NU] of the top 100 that continued to reflect two-digit 24-hour appreciation numbers even as of this writing.

After witnessing its own part of consolidation in recent months, MATIC finally changed its "consolidation" narrative yesterday by recording a massive green candle on its price chart. After opening at $ 1.2 on Friday, MATIC managed to close around $ 1.6, a level last seen on September 7.

The Ethereum-MATIC link

MATIC has followed in the footsteps of Ethereum during most of the uptrend / downtrend phases. Consider this: In May, when Ethereum was creating new highs on a daily basis, MATIC rallied 350% [from $ 0.6 to over $ 2.7] in just two weeks. In particular, during that same period, Bitcoin was trending down on its price chart.

However, Ethereum development has managed to notice an increase of less than 1% during the last day. Therefore, it can be argued that the relationship that MATIC shares with ETH is gradually fading.

Although the aforementioned argument may seem true for now, it should be noted that it will not hold up in the long run.

The X factor

MATIC's recent listing on the South Korean exchange Upbit managed to trigger the alt surge this time around. In the last 24 hours, MATIC recorded a trading volume of $ 1,870,086,050 - equivalent to 28.73% of the total volume of the exchange.

The tokens are not listed on the daily exchange. But whenever they are, they end up feeding the price of any asset. Therefore, without this event, the price of MATIC would not have been able to take such high steps in such a short time.

Eventually, accumulated withdrawal transactions [from exchanges] yesterday hit a 4-month high and the reading for this metric topped 13k. For context, an increase in withdrawal transactions implies that the accumulation trend is in play, while a fall indicates the opposite.

However, the increase was short-lived and the aforementioned level could not be sustained for long. The attached chart below clearly highlights how the transaction count witnessed a free fall. In fact, at the time of this writing, the same had returned to its 6-month lows.

Fundamentals

However, the divergence of DAA prices has been increasing lately. According to Santiment's chart, it has been projecting a strong bullish signal since the end of last month.

This model, as such, tracks the relationship between the price of the coin and the number of daily active addresses that interact with the coin. A buy signal is indicated with the DAA divergence increases along with the price. On the contrary, when active addresses decline during a price rise phase, selling pressure is induced.

MATIC being able to maintain its bullish streak on this chart, only indicates the healthy state of the active directions. Indeed, the environment is quite favorable to sustain the MATIC rally.

Note

The Upbit hype would eventually fade over time, but the fundamentals of the token and its relationship with Ethereum would continue to have a commanding impact on its price.

Therefore, if Ethereum development recovers from this point, the price of MATIC can be expected to move in tandem. The ripple effect of the same would see currency withdrawals record another rally and the build-up narrative would again gain traction.

However, if that doesn't happen, MATIC's price increase phase could end up being momentary.

Bearish post in a bullish phase. Advice worth considering.

Dear Hodlers,

Bearish post in a bullish phase. I'm expecting downvotes, but I am happy to have them if it means I can give wisdom to 1 or 2 people. In this post, I wanted to list a few things to be mindful of when entering what could be one of the craziest weeks of price action we have seen in a few years.

I want to preface my points by saying, I have been, and still am, a HODLER of BTC and other cryptos for many years and have also been burnt in the past and seen significant portfolios dwindle because I didn't take profits when so many fundamentals were screaming at me to do so. I'm not a professional. However, I have a strong passion for trading and love all Bitcoin, and the broader crypto community is looking to achieve.

Here are my thoughts moving forward:

1. Buy the hype, sell the news. Coinbase listing & futures. These two events have been equally as significant as the recent news of a US Futures Bitcoin ETF, which is looking likely to go ahead this coming week. When previously mentioned events occurred, the price has often risen the weeks prior (buying into the hype) and crashed the day or days later after the news hits and is confirmed.
2. As Warren Buffett said, "Be fearful when others are greedy". It takes one search of Bitcoin on YouTube to see the sheer number of green arrows, bulls, and shocked faces at present to action/consider this advice. More so, the BTC fear/greed index is at a point where rejection/price correction has occurred seven times over the last year. See the following link: https://ibb.co/Fwz5fRk. I've overlayed the one-year BTC price and the fear greed index. The white lines represent times the price hasn't blown through this point and instead rebounded or consolidated, resulting in a decent drop in price (>15%).
3. Bitcoin IS overbought from a technical analysis view. I think that's pretty clear to everyone. Most indicators have been screaming for a reversal. We all know that BTC ignores indicators in true euphoric bull runs and respects them when simply rising in price, reversing close to when it should. At this stage, Bitcoin keeps being bitcoin and is going against all the bears claiming 20K incoming.
4. Nothing is linear. Price has been too euphoric. Bitcoin and all assets like to retrace. It's essential for the longevity of a bull run. Since the 25th of September, the price hasn't retraced >~7% from high to low. It's relatively uncommon, especially with the greater than average volume we have seen since this date.
5. Finally, Evergrande. As much as we like to think that BTC isn't tied to traditional markets, it is. I'm not going to lecture you about what's happening. If you don't know what I mean by simply stating, Evergrande, google it and read. It hasn't gone away and isn't any time soon. It could heavily impact this euphoric run we are experiencing if the broader traditional market were to tank.

As much as I'd love to give you the pipedream that we're going to surpass ATH and go the moon from here, I've been led by my emotions so many times in times like this and wanted to give (what I hope) are some wise words of advice.

Stay safe out there, family <3

Pantera Capital CEO: The next Bitcoin price plunge will be "less than" 80%

The Pantera Capital report pointed out that Bitcoin prices will not rise too much in the future.

The Bitcoin market's trend of plummeting more than 80% after experiencing a strong bull market may come to an end.

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A new report released by Pantera Capital, a California-based hedge fund, came to this conclusion. Specifically, the report pointed out that the recent decline in Bitcoin prices has not been as severe as in the past.

​

For example, in 2013-15 and 2017-18, Bitcoin plummeted by 83% after reaching a peak of nearly $1111 and $20,809 respectively. Similarly, Bitcoin's bull market in 2019-20 and 2020-2021 led to large-scale price corrections. Nevertheless, their subsequent corrections were -61% and -54% respectively.

Dan Morehead, CEO of Pantera Capital, emphasized that after the bear market cycles of 2013-15 and 2017-18, selling sentiment continued to decline, and pointed out that the decline in the future bear market will be "smaller." He explained:

​

"I have always believed that as the market becomes wider, more valuable, and more institutionalized, the magnitude of price fluctuations will ease."

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These statements came as Bitcoin resumed its bullish momentum and retested its current record high of close to $65,000.

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Following the approval of the first Bitcoin exchange-traded fund (ETF) after the US Securities and Exchange Commission (SEC) has rejected similar investment products for several years, BTC/USD has exceeded US$60,000 for the first time since the beginning of May.

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ProShare's Bitcoin strategy ETF was approved, raising expectations that it will make it easier for institutional investors to gain exposure in the Bitcoin market. As the price of Bitcoin doubled and returned to a level above $60,000, it also helped Bitcoin erase almost all losses in the bear market cycle from April to July.

BTC is undervalued?

As Bitcoin became a mainstream financial asset after the first ETF was approved, it has become more and more common to hear a valuation of $100,000.

​

Morehead cites the popular S2F model, which studies the impact of Bitcoin’s “halving” event on prices, to rule out a similarly bullish outlook for Bitcoin. He pointed out that the first halving reduced the issuance rate of new bitcoins by 15% (about 10.5 million BTC), resulting in a 9212% increase in bitcoin prices.

Similarly, the second halving reduced the supply of new bitcoins by a third (approximately 15.75 million BTC). This resulted in an increase of 2910%, which was almost one-third of the previous time, so the impact on the price of Bitcoin was small.

The last halving was on May 11, 2020, which further reduced the number of new bitcoins relative to the circulating supply. Since then, bitcoin has risen by more than 720%.

​

Morehead said: "On the other hand, we may not see a 100-fold increase in a year," and added:

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The logarithmic display cycle makes me feel that today's price is very cheap.

(The information provided only represents personal views and is for reference only!

And does not constitute any investment and financial advice. Readers, please establish correct currency concepts and investment concepts, and earnestly improve risk awareness)

The Crypto Daily – Movers and Shakers – October 18th, 2021

"A mixed start to the day saw Bitcoin rise to a late morning intraday high $61,475.0 before hitting reverse.

Falling well short of the first major resistance level at $62,077, Bitcoin slid to a late intraday low $59,019.0.

Bitcoin fell through the first major support level at $59,915 before a late move back through to $61,000 levels.

The near-term bullish trend remained intact, supported the latest return to $62,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend"

THE REST OF THE PACK

"Across the rest of the majors, it was a mixed day on Sunday.

Binance Coin and Ethereum rose by 1.15% and by 0.46% respectively to buck the trend at the end of the week.

It was a bearish day for the rest of the majors, however.

Chainlink and Ripple’s XRP fell by 2.55% and by 3.61% respectively to lead the way down.

Bitcoin Cash SV (-1.66%), Crypto.com Coin (-2.08%), and Litecoin (-1.22%) also struggled.

Cardano’s ADA (-0.89%) and Polkadot (-0.20%) saw relatively modest losses on the day, however.

It was also a mixed week ending 17th October for the majors.

Bitcoin Cash SV (-2.26%), Cardano’s ADA (-1.44%), Crypto.com Coin (-1.62%), and Ripple’s XRP (-3.90%) saw red.

It was a bullish week for the rest of the majors, however.

Binance Coin jumped by 16.51% to lead the way, with Ethereum (+12.66%), Litecoin (+12.46%), and Polkadot (+8.69%) also finding strong support.

Chainlink (+3.43%) trailed the front runners, however.

In the week, the crypto total market fell to a Tuesday low $2,210bn before rising to a Friday high $2,606bn. At the time of writing, the total market cap stood at $2,503bn.

Bitcoin’s dominance fell to a Thursday low 44.43% before rising to a Sunday high 46.75%. At the time of writing, Bitcoin’s dominance stood at 46.63%."

FOR THE BITCOIN DAY AHEAD

"Bitcoin would need to avoid the $60,666 pivot to bring the first major resistance level at $62,313 into play.

Support from the broader market would be needed for Bitcoin to break back through to $62,000 levels.

Barring a broad-based crypto rally, the first major resistance level and Sunday’s high $62,475.0 would likely cap the upside.

In the event of another breakout, Bitcoin could test resistance at $65,000 levels before any pullback. The second major resistance level sits at $63,122.

Bitcoin would need plenty of support, however, to breakout from 14th April 2021’s swing hi $64,829.0

A fall through the $60,666 would bring the first major support level at $59,857 into play.

Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$59,000 levels, The second major support level sits at $58,210."

This is all from the article, I'm not the author.

, https://www.fxempire.com/news/article/the-crypto-daily-movers-and-shakers-october-18th-2021-789184