You can be certain about three things in the world: the sun will rise in the east, cryptocurrency prices are consistently volatile, and the HODL.fm digest comes out every week. Last time, we presented you with some compelling arguments for why Bitcoin’s price was about to take off, and a bull market was just around the corner. We’ve been analyzing the market all week, and here’s what we’ve come to: altcoins predictably shot up, dragging everything crypto-related along with them. With tears of envy in the corners of our eyes, we’ll tell you who’s getting richer before your very eyes. Get ready for a plethora of charts, convoluted terminology, and a touch of crazy Wild West laws that abolish smart contracts. Let’s go!!
Altcoins Are Waking Up
No sooner had the bull trend on Bitcoin started to take hold than it’s already exerting a significant influence on the top altcoins. Chainlink (LINK), The Polygon (MATIC), and Solana (SOL) are hot on its heels, and they’re threatening to outshine Bitcoin in terms of growth rate.
Link
Chainlink (LINK) has triumphed over 1150 days of descending resistance lines. This token started the year with a rather gloomy price of around $5.90. But since then, LINK’s price has almost tripled.
It first reclaimed the $7.90 territory and then revved up its growth engine in September, smashing through the descending resistance trend line the following month.
If LINK manages to break through, it could potentially grow by 90% and reach the next resistance level at around $30.
Matic
The next contender in this crypto race is the MATIC token from The Polygon.
The climax of the support zone slump was at $0.6. However, over the past week, this altcoin has managed to flex its crypto muscles and grow significantly.
As shown in the chart below (you’ll spot it where the purple stripe is), the Relative Strength Index (RSI) for MATIC currently stands at 80, which is a super-duper, absolutely positively fantastic sign for the price increase.
Traders use the (RSI) indicator to decide whether to sell, buy or HODL their assets. When it’s above 50, it’s bullish, and when it’s below 50, it’s bearish.
If Matic’s price manages to close above $0.83, the token could potentially surge by another 50% and reach the next resistance level around $1.26-1.30.
SOL
And last, but not least, altcoin in our potential bull list is Solana (SOL).
Looking back at the past week, SOL has already soared past its yearly high at $49, breaking through the resistance zone at $41. The trusty RSI indicator is off the charts, practically doing cartwheels, signaling further price hikes.
The next resistance level on the horizon is at $74, which is a whopping 45% higher than the current price of $51.
However, don’t rush out to buy, despite this bullish price forecast, if the week ends with a price closing around $40, then the price might take a tumble back to $30.
Current Crypto Market Boost
I don’t know about you, but we’re personally thrilled by this crypto mood boost! It’s the time to ride the positivity wave, we’ve just hopped on it and we’re riding high. Bitcoin, along with TOTALCAP, managed to reach the very peak, and while we were momentarily blinded by the sun, they were already floundering at the shore. Oops…
TOTALCAP
Just when you thought everything was going haywire, here’s a dash of that universal feel-good vibe. In fact, since January 1, 2023, total cryptocurrency market capitalization has surged by more than 83%.
On Wednesday, November 9, Totalcap hit a new yearly high at $1.39 trillion, with a historical high of $2.6 trillion in October 2021.
If TOTALCAP manages to catch a wave and swiftly surfs to the nearest resistance, the price range could be anywhere from $1.42 to $1.49 trillion. However, the next wave (or a dip below the resistance line) could render the current breakthrough null and void. In that case, TOTALCAP might find itself splashing around in the nearest horizontal support area of around $1.22 trillion.
Bitcoin
It was worth patiently waiting all year, lazily checking the Bitcoin price once a week, and finally, the moment arrived! Bitcoin has reached a yearly high of $37,978. Rumor has it that the surge happened due to the buzz surrounding the spot exchange-traded fund BTC (ETF), which triggered a widespread increase in cryptocurrency prices.
But alas, we blinked, and the price evaporated. As of the time of writing, Bitcoin is trading at just a tad over $37,000.
- In the best-case scenario, it could grow by 17.50% and reach the next resistance at $42,900.
- In the worst-case scenario, it might drop by 15% to the nearest support level of $31,000.
Be brave, the outcome could go either way, but of course, we’re leaning towards the positive!
The European Parliament threatens to cancel Smart Contracts
While we’ve been closely watching cryptocurrency prices, it seems that someone behind our backs decided to put a spoke in the wheels of smart contracts and jeopardize blockchain and all things decentralized. Members of the European Parliament voted on Thursday to adopt the Data Act, which includes a contentious provision that could allow for the termination of smart contracts.
Key highlights:
- Smart contracts “can be interrupted and terminated.”
- Execution of functions that reset or stop the contract.
The final version of the bill, presented to the public in July, included a provision that required data-sharing agreements to be safely terminated.
The EU Blockchain Association has sent an open letter, joined by major organizations like NEAR, Polygon, Cardano, and Stellar, expressing their concerns that smart contracts may violate the law.
And here we are, seemingly standing at the edge of the abyss, with the law’s adoption just one step away – the official approval of the European Council, composed of the heads of state from 27 member countries. And what do you think?
The European Commission has declared that the Data Act doesn’t address blockchain and that concerns about the law-making smart contracts illegal are unfounded.
Well, it looks like it’s time to leave, gentlemen!
U.S. Crypto-centric companies are getting richer amid the excitement
The surge in Bitcoin prices has brought positive changes to the stock market for cryptocurrency-related companies. Here’s a list of these lucky winners:
- Coinbase (COIN): Up by about 4%.
- MicroStrategy (MSTR): Rose nearly 5%. MicroStrategy holds a large amount of Bitcoin on its balance sheet.
- Robinhood (HOOD): Showed more modest gains of 2.5%, though it had previously experienced a significant drop in its stock price due to declining revenue and trading activity.
- Mining firms Marathon Digital (MARA) and Riot Blockchain (RIOT): Both experienced substantial gains of 9.8% and 6%, respectively.
Leading up to the spike in Bitcoin prices, the stocks of most of these companies had taken a dip. However, the sudden Bitcoin rally reversed their downward price movement. Happy a**holes!
Let’s sum it up
The long-awaited hopes for a Bitcoin price surge have finally begun to meet the expectations of all blockchain and crypto industry participants. Following Bitcoin’s lead, the stocks of crypto-related companies have soared, the total cryptocurrency market capitalization has risen, and major altcoins have set their sights on outpacing Bitcoin (in terms of percentage, of course, not price) in the November race. There was even a nerve-wracking moment with the EU, but luckily, everything worked out, and blockchain companies can breathe easy until the next law stirs things up again.
Well, we’re in the front row of the Formula 1 race, armed with chips and popcorn, and we’ll keep you updated on who’s confidently holding the steering wheel and who’s spinning out at the next turn. See you next week!
