Bitcoin rose 13.40% to $54,659 against the dollar by the end of the week. Over the weekend, price action climbed 1.4%. On Sunday, buyers made two unsuccessful attempts to gain a foothold above $56k. As a result, the leading cryptocurrency price fell back to $54,333.
The active phase of the BTCUSDT rally took place during the first half of last week, with prices up 18% in the space of three days. During the other days, price action trended sideways in the range of 4.7% (~$2,550).
Several factors contributed to last week’s rally:
1. Assurances by Fed Chair Powell that the US does not intend to take its cue from China and will not prohibit cryptocurrency mining.
2. Inflation angst has gripped investors due to the rally in oil and gas prices. Gold cannot be used as an inflation hedge, which is why investors have opted for cryptocurrency as a defensive asset.
3. The family office of billionaire George Soros holds Bitcoin as confirmed by the CEO and investment director of Soros Fund Management Dawn Fitzpatrick in an interview with Bloomberg.
4. The U.S. Securities and Exchange Commission (SEC) has approved an exchange-traded fund (ETF) that aims to provide investors with exposure to publicly traded companies with exposure to bitcoin.
Buyers advanced $57,049 high on Monday, October 11. There has been some brisk selling, since the $56k - $ 57.5k zone is a strong resistance on the daily TF. Once breached, the road will be clear for buyers to reach $60.5k.
Ether rallied to $3,623, approaching the October 8 high of $3,695. The next targets are $3,895 and $4,255 for the ETHUSDT pair. A rising dollar causes problems for everyone. Market participants prefer to stay in the greenback before the next Fed meeting to be held on November 2-3. At that time, investors expect the regulator to start winding down the QE program.