September was a great month to make a few purchases, just like I mentioned last month. The market took a tumble; Ethereum and Bitcoin had a 30% discount towards the end. If you missed last month’s outlook, I recommend reading it since there is good information and explanation for why September was one of the best months to purchase year to year. Let’s get to the charts.
Bitcoin 1D:
This chart is looking solid. I still think we need to fill in more gaps around 41-43k to give Bitcoin a concrete floor (white circle on market profile). We may not see it, but the price foundation for more significant movement needs to be filled. The current price is dead smack average price on the Kepler bands. 20 day MA held, and consolidation occurred since May. If we take the Average gain from the last 8 September’s on Bitcoin, that puts us around 108k BTC, especially with the pending approval for multiple Bitcoin ETFs in the US, we could be in for one hell of a ride.
Ethereum 1D:
The chart is looking strong. From the previous ATH, we have a triple bottom at the control price (solid red line). The extension retested 4k on Ethereum, and the last drop in September had prices below 3k and time to make purchases. As I discussed in the previous outlook, The September-January timeframe saw an average increase of 252% in crypto market capitalization since the inception of Bitcoin. That puts Ethereum at 8.6k, which is a reasonable number by the end of the year. The growth of NFTs and reduction in ETH issuance due to EIP-1559 is putting a strain on freely available Ethereum. In the medium term, reaching $4,982 will begin the exponential drive towards the end of the year, which I have talked about previously.
ETH/BTC
Here is the critical chart. ETH bottomed out at the beginning of 2021 at around .023. We have since pushed up into the .06-.07 range and have been under consolidation after the May crash. With the possible approval of the Bitcoin ETF looming towards the end of October, this ratio will dive and test the .054 region again before continuing the upwards trend. If this scenario plays out, I believe we can reach past highs at .08 and .1, which are shown in the gold lines at previous points of interest from 2017-2018. I currently have no bitcoins and rotated out of them around .034 and haven’t looked back. The possible TAM ( Total Addressable Market) of Ethereum far outweighs Bitcoin’s use case, and I have been pleased with this decision at the end of March.
That’s all for the free weekly Crypto Crier. If you enjoyed this article, please like and share. If you have any questions, please leave a comment, and I can answer your questions further. As with all of my writing, this is not financial advice and is my opinion. I cannot stress enough how important it is to do your own research on all financial endeavors. I hope these newsletters can help investors realize the current financial systems’ downfalls and usher in a more equitable system without middlemen.
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