Bitcoin Hits $20,000 Mark; Ethereum, Polygon and XRP rise up to 4%

New Delhi: Top crypto tokens traded sideways on Thursday as investors fretted over new job numbers and OPEC oil cuts.

Bitcoin held above the $20,000 mark, while Ethereum was seen marching towards the $1,400 mark again. However, economic factors, including inflation and recession, are likely to steer the riskier assets in the short term.

Apart from US dollar-pegged stablecoins and Shiba Inu, all other top crypto tokens traded higher on Thursday. XRP zoomed more than 4 percent, while Ethereum, Avalanche and Polkadot gained one percent each.

The global cryptocurrency market capitalization traded marginally higher at $972.12 billion, rising less than one percent in the past 24 hours. However, total trading volume fell over one percent to $59.92 billion.

What is cooking in India
Many wealthy Indians are paying in cryptocurrencies to buy properties in Dubai, with leading real estate agents in the emirate accepting the digital coins to cut deals.

Such transactions, while perfectly kosher in Dubai, which wants to position itself as the crypto capital of the world, could come back to haunt the property owners, most of whom are unaware of the regulatory and legal pitfalls that lie ahead.

Expert take
The first week of October started with some positive movement in the cryptocurrency world, said Prashant Kumar CEO and founder of weTrade.

“With indications of a less aggressive tightening of inflation by the Federal Reserve, the market is slowly opening up and we could have higher gains if the trend holds,” he added. “Global Crypto Market Cap Stayed Under $1 Trillion.”

Global updates
Two Sigma Securities, a quantitative hedge fund with around $60 billion in assets under management, will provide data to popular blockchain information network Chainlink, according to a press release.

The Middle East and North Africa (MENA) region was the fastest-growing market for crypto adoption in the 12-month period ending June 30, according to blockchain analytics firm Chainalysis.

Investment management firm Hamilton Lane will tokenize three of its funds in a partnership with securities firm Securitize.

Tech View of Giotto’s Crypto Platform
Bitcoin (BTC) re-entered $20,000 territory on Wednesday with a daily close that overcame a long trendline that has served as resistance since November 2021. With another daily candle now closing above this trendline, combined with the RSI, a uptrend bouncing back moving averages, this may signal the end of new lows, at least temporarily.

However, with macroeconomic conditions not looking positive globally, BTC may also continue to move lower with the trend line acting as descending support. In such a case, it will test the levels where it bounced recently – at $18,500 and $17,900 – the lowest this year.

For now, a reasonable strategy could be to enter positions as BTC confirms its recovery of the 50-day moving average at $20,300, with a stop loss below this key support and a target around $22,000 – which is where BTC’s 100-day exponential movements the average lies.

Should it be overcome, the important 200-day moving average, which sits around $26,500, could be the level all eyes will be on.

Main Levels:

Support: $20,000, $18,500, $17,900

Resistance: $22,100, $25,000, $26,500

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial advisor before taking any position in the asset(s) mentioned.)