October 2022 started differently compared to previous Octobers, given that the crypto markets started on the back foot. Things changed for good last week after the U.S GDP report came on the positive side at 2.6%. This development changed the narrative for both the crypto and stock markets as the Dow Jones ended Friday being 828 points up.

The Dow Jones climbed to 32,861 and another rally can take it up to new highs. A stock market rally could pull the crypto markets up along with it and begin November (or Moonvember) well!

Today, the global crypto market cap stood at $1.01 trillion, a 1.28% decrease over the last day. However, the volume in the crypto market logged a decline of over 18% to $73.05 billion over the last 24 hours.

What you need to know

Crypto traders, along with counterparts in traditional finance, will be looking ahead to the Federal Reserve's next monetary-policy meeting, set to conclude Wednesday. Based on pricing from the CME exchange, traders in futures contracts on federal funds are almost certain the U.S. central bank will raise interest rates by 75 basis points (0.75 percentage point) this week, but there's growing speculation that officials may downshift to a slower pace of increases in December. All things being equal, faster price increases tend to be bad for prices of risky assets like bitcoin.

This week also will bring the U.S. jobs report for October, set to be released by the Labor Department on Friday. Economists estimate the economy added 195,000 jobs during the month, a slowdown from September,’s 263,000 increase but still a robust pace. Strong growth might keep pressure on the Fed to keep ratcheting rates higher.

At the time of writing, Bitcoin was trading at $20,680, up by 6.34% in the last seven days.

Bitcoin recently made a fresh attempt to clear the $21,000 resistance zone. However, BTC failed to gain momentum above the $21,000 resistance zone. A high was formed near $21,074 and the price started a fresh downside correction.

What you should know

Earlier this week, crypto analytics firm Glassnode said that Bitcoin is forming a bear market floor. The firm said, “Throughout the capitulation in early 2022, the accumulation trend score indicates significant accumulation by large entities has taken place, as well as the seizure of the recent bear market rally to $24,500 for exit liquidity.”

This could validate on-chain data, which shows that Bitcoin whales who bought around one month ago have continued to hold strong despite the recent price surge providing them with a chance to make some profit. This is an indication of an upward trajectory!

If bitcoin fails to rise above the $20,800 resistance zone, it could continue to move down. An immediate support on the downside is near the $20,450 zone. However, the next major support is near the $20,200 zone, while the main support sits at $20,000. A downside break and close below $20,000 might open the doors for a substantial decline in the near term.

Ethereum price had a relatively strong performance in October after consolidating for months. The ETH price soared to a high of $1,663, which was the highest level since September 13.

Ethereum’s bullish trend and rebound happened as investors focused on the likelihood that the Federal Reserve will pivot in the coming months. ETH price rebound also coincided with a sharp rebound in American and global stocks. This also explains why other cryptocurrencies like Bitcoin and Ripple made a strong bullish breakout.

Our take

Ethereum’s price soared to an all-time high in November last year. ETH moved above the important $1,400 resistance on September 27. It has since moved above the 25-day and 50-day moving averages.

Ethereum’s volume and Relative Strength Index (RSI) have made a bearish divergence. Therefore, there is a likelihood that the coin will pull back and then resume the bullish trend to $2,000.

After more than doubling in value in the past seven days as Elon Musk finalised his takeover of Twitter, Dogecoin (DOGE) has retracted by around 8% this morning. Before the decline however, about US$52mln in short positions were liquidated on the exchanges. With a market cap of over US$15bn, the meme coin remains extremely overbought, making further losses likely. 🐕

Among the large-cap altcoins, Cardano (ADA) and Polygon (MATIC) saw the biggest losses this morning, having both dipped around 3.5%, while Solana (SOL) and Polkadot (DOT) opened in the green.

In the DeFi space, Convex Finance and Lido have dipped 6% and 8% respectively, while Uniswap has seen a 4.5% reversal from its recent rally.