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Bitcoin: the price approaching the period highs of $13,400
Bitcoin: the price approaching the period highs of $13,400
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Bitcoin: the price approaching the period highs of $13,400

By Federico Izzi - 26 Oct 2020

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Among today’s green signs, Bitcoin continues with a +1.5% increase from yesterday morning’s levels trying to exceed the highs reached on Sunday night with prices one step away from $13,400, the record of June 2019, the highs of the last two and a half years. 

With a gain of over $1,500 in seven days, in order to find a better week for Bitcoin, it is necessary to go back to the beginning of summer 2019. A performance that exceeds 13%, inferior only to the last week of April when the percentage difference between the two Sunday closures exceeded 15%. 

coin360 20201026
Source: COIN360.com

In the Top 10, it is Polkadot (DOT) that has the best increase of more than 6% on a daily basis, while among the top 20 capitalized only Litecoin (LTC) does better, with a weekly increase of more than 20%.

LTC 20201026

The roller coaster continues for Filecoin (FIL) which today soars more than 20% and sees the 40 dollars again, achieving the best increase on a daily basis. After the listing of the token on the main exchanges ten days ago, tensions between the project’s liquidity providers caused the price to plummet to $20 last Friday.

The recent rise in Bitcoin prices brings the capitalization of the queen of cryptocurrency to 245 billion dollars, a level abandoned at the beginning of January. It is a rise that also drives the total capitalization to $400 billion

Bitcoin’s market share exceeds 61.5% cannibalizing the dominance of both Ethereum, which returns below 11.5% for the first time since the end of September, and XRP which sinks below 2.9%, the lowest level since mid-December 2017.

The Harvest Finance hack halts DeFi’s climb

After setting a new record for locked collateral above $12.3 billion on DeFi projects, the Harvest Finance hack caused a loss of around $1 billion in just a few minutes

DeFiPulse 20201026

The Harvest Finance protocol allows investors to generate returns between various stablecoin and tokenized bitcoin assets. And it is precisely by manipulating the ability to easily exchange tokens using multiple protocols (legos) that the hacker was able to exploit the protocol’s flaw to drain $24 million of users’ deposits in just seven minutes. 

To prevent the exchange and withdrawal of stolen funds, many of the major centralized exchanges (CEXs), Binance, Coinbase and Huobi, are blocking some bitcoin addresses provided by Harvest that are believed to be linked to the attacker.

BTC 20201026
Bitcoin chart by Tradingview

Bitcoin (BTC): highs to monitor

After breaking through the resistance of the previous August highs, sellers seem to have disappeared. The climb of the last few hours is sustained by purchasing volumes lower than in the past few days.

Even the new strategies of operators in options do not yet provide useful indications for understanding the intentions of the next move. In such an environment, it is best to wait and see if the recent highs in the 13,350 USD area can be monitored. A possible breakage will have to be accompanied by an increase in purchasing volumes. 

The rapid climb in recent days has not formed reliable support levels, so any short-term bearish speculation finds fertile ground for drops of up to a few hundred points. Only a return under 12,400-12,200 USD would begin to undermine the recent bullish rally.

ETH 20201026
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum’s surge brought prices back to review the 415-420 USD area after more than a month where the coverings prevailed. These levels remain the last wall to be knocked down in order to continue the sprint that would open spaces to revise the highs at the end of August in the 490 USD area. For a solid climb, it is necessary to consolidate the prices above the former resistance of the 390-400 USD area, which since mid-September had rejected any attempt to break. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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