Dear Teroxx Community,
This week we saw a crypto-market that faced profit takings and a downtrend in most altcoins!
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
This week contains a geopolitical event which traditionally plays havoc with markets: the U.S. presidential election.
Coming at a time when coronavirus angers and restricts daily life for many U.S. citizens, markets will be keenly watching the result for clues as to the incoming president’s future policy. Analysts believe that regardless of who wins, the result will be a boon for safe havens such as gold. Bitcoin, despite becoming less tied to macro markets in general, may yet react to moves in the strength of the U.S. dollar.
On the topic of institutions, analysts remain bullish over Bitcoin’s monthly close, despite the largest cryptocurrency narrowly missing out on setting an all-time high.
Warren Buffett has a message to young investors: dollar-cost average into major stock market indices. However, data shows that the same strategy has worked quite well for Bitcoin (BTC) too over the past decade.
As an example, if an investor cost averaged $100 into Bitcoin since January 2014 and spent $35,700 in total, it would have returned 1,648% or around $589,000.
Technical term of the week
Dollar-Cost-Average: Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals.
The market was driven by high prices in Bitcoin and profit taking in altcoins!
After the market “relaxed” a little after the PayPal announcement profit taking took place.
As a result, most Altcoins were unable to maintain their values and lost between 3-8%.
Bitcoin was able to confirm the upswings, establish support above $13,000 and only encountered greater resistance at $14,000 (the high point of 2019)! This resistance could not be broken and Bitcoin also saw sales of ~4% from this level.
On a weekly basis, only Bitcoin could show slight positive movements.
The fundamentals for the market remain bullish and if the mass adaptation continues to be as positive as it was in October, the digital assets could show bullish movements after smaller sales.
Bullish outlook: If the US presidential election is done we could see relaxation on the world wide markets and a positive week to come!
Bearish outlook: $13.000 needs to hold as an support this week. Losing this area could lead to a sell-off down to $12.500.