Cryptocurrency market on October 6 CHK: Bitcoin continues to hold the $20,000 mark, altcoins increase slightly

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2022-10-07 03:45:42

Bitcoin (BTC) continued to hold steady at $20,000 on Oct. 5 as investors remained hopeful the market would set new local highs.

Cryptocurrency Market

Market data shows Bitcoin price hitting $20,470 before falling back lower. Currently, BTC trades around $20,236 with a 24-hour trading volume reaching a steady value of $36 billion.

Bitcoin price movement on October 6, 2022

On-chain analyst, Material Indicators, expects the $20,000 zone to continue as support as a positive sign going forward.

“A retest of technical resistance at the 50-day MA was rejected. Now, it is important for BTC to hold onto the $20,000 support – the peak of the 2017 bull cycle. The bulls may be losing momentum, but they have placed a buy wall at $20,000 to keep the price from falling. deeper”.

The 50-day moving average (MA) at $20,170 has yet to act as decisive support. Meanwhile another KOL, Il Capo of Crypto, continues to emphasize the view that BTC could head towards $21,000 before triggering a stronger pullback.

Top 10 cryptocurrencies by market capitalization on October 6, 2022

The cryptocurrency market today thanks to the positive signs from Bitcoin has also continued to see the hopeful green again. The largest altcoin – Ethereum recorded a slight increase at $1,369 with a 24-hour trading volume of $11.48 billion.

Most of the projects in the top 100 recorded slight gains on the day, the most prominent being Ethereum Name Service (ENS) with a rally of more than 9% in the past 24 hours.

Other projects like Helium (HNT), Trust Wallet Token (TWT), Uniswap (UNI), XRP (XRP)… also showed profits above 5% on the day.

Market sentiment after Bitcoin’s days holding above the $20,000 mark has improved. The Greed and Fear Index (FGI) has now moved into the Fear zone when it hits 26 points.

Cryptocurrency Market FGI Index October 6, 2022

Macro factors

The US stock market dropped in Wednesday’s trading session (October 5), ending a series of two strongest gains since 2020 in the first two days of the week. Crude oil prices rose for a third consecutive session after OPEC+ announced a production cut of 2 million barrels per day.

Pressure on stock prices on Wall Street has re-emerged as the dollar rebounded and US Treasury yields rose again on fresh signs that the US economy was still hot and Administration officials. The Federal Reserve (Fed) is still determined to raise interest rates to fight inflation.

Earlier this week, the market received support from data showing that the US labor market appeared to be weak. New data released on Wednesday, however, showed that the labor market remained tight, reinforcing the Fed’s tough stance and quelling glimmers of hope for an early Fed shift to softer.

Despite escaping from the session’s bottom, all three major indexes closed in the red. The Dow Jones lost 0.14%; the S&P 500 fell 0.2%; and the Nasdaq slipped 0.25%.

Global stock markets also fell in this session, after gaining in a row in the first 2 sessions of the week. The MSCI All Country World Index closed down 0.12%.

Yields on US Treasuries rose 14 basis points to 3.749%, after two consecutive days of declines. Dollar Index returned to 110 points, from more than 109 points in the previous session.

The glimmers of hope that the economy might be decelerating enough to slow the Fed’s rate hikes were snuffed out on Wednesday, on various fronts.

The Central Bank of New Zealand (RBNZ) continues to raise interest rates with a big jump; The US employment report of the recruitment service company ADP showed that the number of jobs in this country’s private sector in September increased more than expected; and a report from the Institute of Supply Management (ISM) showed that the US service industry declined in September less than expected and the number of jobs in this industry also increased.

All this data resonates to suggest an economy is decelerating at a rate that isn’t slow enough to make central banks “rethink” their toughness.

Atlanta Fed President Raphael Bostic said the Fed’s fight against inflation was “probably in the early days” despite “glimmers of hope” from recent data.

“The rally in stocks and bonds over the past few days has been driven by weak economic and labor market data. Stocks and bonds are being sold again today, following a tough New Zealand policy decision and strengthening US economic data,” JPMorgan Private Bank chief strategist Jacob Manoukian told the firm. Reuters news.

This Friday, the US Department of Labor will release the monthly jobs report. The report is expected to provide a clearer and more comprehensive picture of the US labor market situation for investors and policymakers.

Crude oil prices had a third consecutive increase, reaching a 3-week high, after OPEC + agreed to cut oil production by 2 million barrels per day. This amount of oil is equivalent to about 2% of global oil supply and marks the largest production cut by OPEC since the production cut in early 2020 – when Covid became a global pandemic.

OPEC+ is an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a number of non-OPEC members including Russia.

At the close, Brent oil futures in London rose 1.7% to close at $93.37 per barrel. WTI oil futures in New York rose 1.4%, reaching 87.76 USD/barrel.

SPDR Gold Trust, the world’s largest gold exchange-traded fund (ETF), had a 3rd consecutive net buying session, providing a support for gold prices amid a rise in the USD exchange rate and US Treasury bond yields. come back.

Spot gold price in the Asian market at more than 10 am Vietnam time stood at 1,724.2 USD/oz, down 6.8 USD/oz compared to last night’s closing price in New York. This price is equivalent to about 49.9 million VND/tael, an increase of 100,000 VND/tael compared to the world gold price converted yesterday morning. In the US session on Wednesday, the price of spot gold fell by $9.7/oz, or 0.6%, to $1,717.4/oz.

Gold prices fell when the US Treasury bond yields and the USD exchange rate were “hot” again after several consecutive days of cooling down. Yields on US Treasuries rose 14 basis points to 3.749%, after two consecutive days of declines. The Dollar Index recovered more than 1%, to 110 points, from more than 109 points in the previous session.

Earlier this week, the dollar and interest rates both fell, while gold prices rose, as data showed the US labor market appeared to be weak. New data released on Wednesday, however, showed the labor market remained tight, reinforcing the Federal Reserve’s tough stance and quelling glimmers of hope. an early shift by the Fed to softer. This paved the way for the USD and US Treasury yields to rebound, putting downward pressure on gold prices.

This Friday, the US Department of Labor will release the monthly jobs report. The report is expected to provide a clearer and more comprehensive picture of the US labor market situation for investors and policymakers.

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