- Any move above $52,000 for Bitcoin can trigger the next bull run for the world’s largest crypto.
- High DeFi and NFT activity and low exchange supply create a bull-case scenario for Ethereum.
As we are already into the fourth quarter of 2021, there’s a renewed optimism for the Bitcoin (BTC) price rally coming ahead. Just in the first six days of the quarter, Bitcoin (BTC) is already up 18 percent and today it has surged past its crucial resistance of $50,000.
As of press time, Bitcoin is trading 4.32 percent up at a price of $51,600 with a market cap of $966 billion. Many analysts have been saying that the Bitcoin (BTC) price will reach $100K by the end of this year. Speaking to Kitco News on Tuesday, October 5, OANDA senior market analyst Edward Moya said:
Bitcoin is closer to $100,000 than it is to zero. Recapturing the $50,000 level is a big deal for Bitcoin and significant for the cryptoverse. Bitcoin is starting to show bullish signs despite whatever risk mode is happening on Wall Street.
He further noted that Bitcoin is registering an important shift breaking away from the bearish U.S. stock market. “It appears large parts of both the retail and institutional world have evolved and have embraced becoming Long-Term-Holders(LTH),” added Moya.
The analyst further notes that the key levels to watch immediately would be $52,000 beyond which could lead to more technical buying. Bloomberg Intelligence senior commodity strategist Mike McGlone also weighed in with his opinion regarding the same. He added:
The benchmark crypto is running into layers of support below $40,000. A correction of about 50% from its peak appears to have simply cleansed the market of excess and speculation. The necessity of a rising stock market for reflation vs. the price-discovery stage of Bitcoin sets up well for continued outperformance for the crypto.
Watch out for Ethereum (ETH) as well
Just like bitcoin (BTC), Ethereum (ETH) has also been showing momentum since the start of this month. so far in the first six days of Q4 2021, the ETH price has gained 16 percent. As of press time, ETH is trading 2.18 percent up at a price of $3474 and a market cap of $408 billion.
Ethereum (ETH) has seen a large number of institutional inflows over the last few months. Furthermore, because of high activity in decentralized finance (DeFi) and NFT space, Ethereum (ETH) has been in strong demand recently. Commenting on the plunging ETH supply at the exchanges, Bloomberg analyst McGlone said:
Demand and adoption are rising, but our graphic depicts a notable difference from a year ago — plunging supply. At the start of 4Q20, the 12-month rate of change in the measure of Ethereum supply from Mosaic was closer to 5%. Now it’s on track to drop toward 2% because of a recent upgrade.
For a while, Ethereum (ETH) has been consolidating at around $34000 levels. Any strong trigger in the market can push its price to $5K and beyond. some analysts are also expecting Ethereum (ETH) price to touch $10K by the year-end.