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Dogecoin’s (DOGE) price rallied to its best levels in two months as traders assessed Twitter’s potential to create a cryptocurrency wallet product.

Elon Musk fuels Dogecoin rally again

DOGE’s price jumped to $0.081 on Oct. 27. The price gained roughly 40% two days after Jane Manchun Wong, a popular tech blogger, claimed that Twitter is working on a wallet prototype that supports cryptocurrency deposits and withdrawals.

Elon Musk is the thread that connects Dogecoin and Twitter. Earlier this year, the Tesla and SpaceX CEO won the bid to purchase Twitter for $44 billion. Later, on April 11, he flirted with the idea of adding Dogecoin as a payment method for the Twitter Blue subscription service.

DOGE’s price grew 30% to $0.17 in 10 days after Musk’s pro-crypto suggestion to the Twitter board. But the memetoken fell drastically afterward, reaching as low as $0.05 in June as Musk attempted to back away from the deal, citing his concerns over Twitter’s user figures.

Twitter sued Musk in response, eventually prompting the court to rule in its favor. Chancellor Kathaleen McCormick, the judge overseeing the legal battle, denied attempts by Musk to postpone the trial, noting that the deal should close by 5 pm ET on Oct. 28.

Bitcoin (BTC) has seen record buying activity as BTC/USD returns to six-week highs.

The latest data from on-chain analytics firm CryptoQuant shows more BTC leaving major exchange Binance in a single day than ever before.

Binance finishes the day 55,000 BTC lighter

Despite warnings that a macro bottom may not yet have occurred, Bitcoin investors have wasted no time snapping up BTC above $20,000.

The past two days’ gains delivered a sea change to exchange user behavior, with BTC balances dropping across the board.

As the largest exchange by volume, Binance was of particular interest and saw a net position change of over 55,000 BTC on Oct. 26 — the most ever.

Research has detailed Bitcoin’s recent record-low volatility and while traders expect an eventual price breakout, the Oct. 26 BTC price move to $21,000 is not yet being interpreted as confirmation that $20,000 has now become support. 

In a recent “The Week On-chain Newsletter,” Glassnode analysts mapped out a bull case and a bear case for BTC.

According to the report, the bear case includes limited on-chain transaction activity, stagnant non-zero address growth and reduced miner profits present a strong Bitcoin sell-off risk but data also shows that long-term hodlers are more determined than ever to weather the current bear market.

The bull case, on the other hand, entails an increase in whale wallets, outflow from centralized exchanges and hodling by longer term investors.

Stalled new address growth

On-chain active address growth remains stagnant across the BTC network. A reduction in transactions translates to a decrease in utilization and user growth for the network, factors which could possibly hinder BTC price expansion.

Bitcoin price is up today, and a marketwide rally in crypto prices suggests that Bitcoin (BTC) and Ether (ETH) could be aiming to wrap up the month of October in the black.

As of Oct. 26, most major cryptocurrencies are posting single-digit gains. Bitcoin recorded a 5.15% price increase over the previous 24 hours and a 5.48% gain over the previous seven days. While the current price is fluctuating, BTC is holding above the psychologically important $20,000 level. The following chart shows the BTC rally since Oct. 24.

Stocks are beginning the day down as Bitcoin continues to remain over $20,000. Bitcoin’s momentum has continued for three days now and is seeing green candles on Oct. 26. The recent price spike pushed the total cryptocurrency market capitalization above the $1 trillion mark and comes after months of Bitcoin trading in a narrow sideways range of $18,000 to $20,000.

Hand in hand with Bitcoin’s growth, most major cryptocurrencies — including Ether (ETH), Solana’s SOL (SOL), Cardano’s ADA (ADA), Polygon’s MATIC (MATIC), XRP (XRP) and Tron’s TRX (TRX) — have registered price increases of more than 10% over the last 48 hours. There are several reasons for the crypto rally.

The current rally in BTC and other major cryptocurrencies may indicate an increase in confidence in the market following several key developments. Here are the key drivers of the growth.

Bitcoin (BTC) returned to $21,000 for the first time since September after the Oct. 26 Wall Street open as buyers solidified gains.

BTC bulls “eat” ask liquidity

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit local highs of $21,012 on Bitstamp.

At the time of writing, the pair continued to explore territory out of reach for over six weeks.

Liquidations also kept flowing, with the past 24 hours delivering $750 million in liquidated positions on Bitcoin alone, according to data from Coinglass.

Cross-crypto liquidations totaled $1.43 billion, adding to what was already the highest tally in 2022 so far.

Bitcoin (BTC) volatility is finally giving BTC bulls what they want — but why now?

After drifting lower for months and spending recent weeks in a tiny trading range, BTC/USD has delivered 24-hour gains in excess of 7%.

Hitting its highest levels since mid-September, the largest cryptocurrency is rewarding those who refused to sell and punishing shorters to the tune of around $1 billion.

The trend change came quickly and caught many by surprise, as evidenced by that liquidation tally.

Behind the scenes, however, little has changed — macroeconomic conditions have not undergone major upheaval compared with a week ago, and internal problems for Bitcoin, such as miner strain, remain the same.

Ethereum’s native token, Ether (ETH), recorded better gains than Bitcoin (BTC) over the past 24 hours despite the latter finally rising above the key $20,000 level.

Ether beats Bitcoin in risk-on rally

On the daily chart, Ether jumped approximately 14% to reach its weekly high of $1,554 (data from Binance) on Oct. 26. Bitcoin underwent a similar rally, but its week-to-date profits are just 6% by comparison. 

The ETH/BTC pair gained around 8%, climbing as high as 0.075 BTC on Oct. 26.

The boom across the top crypto assets has been synchronous with the United States stock market’s winning streak since Oct. 24. It also came on the backdrop of a weaker U.S. dollar index, which has been typically trading inversely to the crypto market since March 2020.

Bear fractal alarm

ETH/BTC’s latest price rally has taken it to a range that preceded a 35% correction in the April–May 2022 session (marked as “R1” in the chart below) and was instrumental in limiting its upside prospects in August–September 2022 (marked as “R3” in the chart below).

A sharp rebound in the Polygon (MATIC) market in the last four months has increased its price by 200% when measured from its June 2022 bottom of $0.31. And now, the token is showing signs of undergoing another major market rally.

MATIC exchange balance hits nine-month low

Notably, the MATIC supply held by all crypto exchanges fell to 802.15 million on Oct. 26, its lowest level since January 2022. The plunge came as a part of a broader downtrend that has witnessed over 600 million MATIC leaving exchanges in the last four months, data on Santiment shows.

A declining crypto balance across exchanges is perceived as bullish by the market since traders typically withdraw their funds from trading platforms when they want to hold the tokens long-term.

The MATIC chart above shows a similar albeit erratic negative correlation between its price and supply on exchanges. As a result, a period of decline in MATIC reserves at exchanges has historically coincided with an uptrend in price and vice versa. 

Therefore, the latest plunge in MATIC supply across exchanges hints at more upside for the token in the coming weeks.

Bitcoin (BTC) saw its highest levels since mid-September on Oct. 26 as BTC/USD approached the pivotal $21,000 mark.

Bears lose big as Bitcoin climbs

Data from Cointelegraph Markets Pro and TradingView showed the pair tackling $20,700 at the time of writing, up over 7% in 24 hours.

What began as an assault on $20,000 continued on the day, liquidations mounting further after already sealing the biggest shorts obliteration of 2022.

According to data from analytics resource Coinglass, Bitcoin alone accounted for $550 million in liquidations in the past 24 hours.

$704 million in cross-crypto shorts were liquidated on Oct. 25, with the Oct. 26 tally so far standing at $275 million. Including long positions, the total was over $1 billion.

October witnessed a surge in Bitcoin’s hash rate, which is pushing the metric to a new high of 245 exahashes per second. These changes led to a sharp decrease in the hashprice, resulting in a drop in the profit margins for Bitcoin (BTC) miners and reaching a low of $66.8 per petahash on Oct. 24.

According to Luxor Technologies, “hashprice” is the revenue BTC miners earn per unit of hash rate, which is the total computational power deployed by miners processing transactions on a proof-of-work network.

Not only has volume been inconsistent, but the Bitcoin hash rate increased last week to an average of 269 EH/s. This means that the network’s difficulty has been rising since July 2022.

The expansion of mining operations, which creates miner competitiveness; the increased use of ASIC miners, which are more efficient than their alternatives; and the Ethereum Merge have led some Ethereum mining firms to fill empty rack space from non-operating Ether (ETH) GPU miners with BTC-specific ASIC miners.

Consequently, the surge in the hash rate resulted in an adjustment of the Bitcoin difficulty at a time when BTC’s price was dropping. As expected, after the hash rate spike and difficult increase, the hashprice plummeted to $0.0657 per terahash per day, thereby reducing the level of profit.

Bitcoin (BTC) spiked above $20,000 on Oct. 25 as risk assets benefited from new U.S. dollar weakness.

Bitcoin taps three-week highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting highs of $20,191 on Bitstamp.

The move came in tandem with rising United States equities, these in turn buoyed by a declining U.S. dollar, which lost traction against major trading partner currencies on the day.

With that, Bitcoin saw its first trip above the $20,000 mark since Oct. 7.

“Finally, the volatility will kick in,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.

The share of the Bitcoin (BTC) network controlled by publicly held mining companies could grow to 40% by mid-2023, according to a new report by Hashrate Index. But this could bring more stress to an already bearish BTC market.

Public Bitcoin miners’ hash rate jumps 295% in a year

The outlook appeared after assessing the hash rate performance of Core Scientific, Marathon Digital Holdings, Riot Blockchain and other public miners over the last 12 months. Notably, these firms increased their hashing capacity from 15 exahashes per second a year ago to 58 EH/s in October 2022 — a 295% increase.

In comparison, the hash rate of private miners increased from 134 EH/s to 177 EH/s in the same period — a 58% growth.

“The driving force for the public miners’ rapid capacity increases is that they could access cheap capital during the bull market of 2021,” explained Jaran Mellerud, a Bitcoin mining analyst and the author of the Hashrate Index report.

He added that public miners used the money to purchase massive mining rigs. As a result, these firms have tens of thousands of Bitcoin mining rigs in storage, waiting to be plugged in, while awaiting deliveries of more rigs.

Bitcoin (BTC) returned to local highs at the Oct. 25 Wall Street open as nervous analysts kept an eye on miners.

DXY provides instant relief for BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to offer a modest challenge to resistance, still unable to escape an established trading range.

United States equities likewise headed modestly higher, with the S&P 500 and Nasdaq Composite Index up 1% and 1.3%, respectively at the time of writing.

The U.S. dollar index (DXY) conversely lost ground on the day, falling to its lowest levels since Oct. 6 and providing potential tailwinds for risk assets to seal opportunistic gains.

For traders, the intraday status quo remained in place amid an ongoing lack of real volatility. Popular Twitter account Crypto Tony highlighted significant range levels, with $18,900 an important zone to hold.

Bitcoin (BTC) “will break out significantly” in the next month, with an upside target of $30,000.

That was the latest prediction from Michaël van de Poppe, founder and CEO of trading firm Eight.

Analyst on November price target: "My guess is probably $30K"

In a tweet on Oct. 25, Van de Poppe joined a growing number of analysts delivering bullish BTC price forecasts.

BTC/USD is currently marked by a distinct lack of volatility, but signs are flowing in that the sideways trend is due a major shake-up.

Bitcoin’s Bollinger Bands versus the Nasdaq are the tightest in history, popular analyst TechDev and others confirmed in recent days, this all but guaranteeing an explosive move to come.

Bitcoin (BTC) waited for cues at the Oct. 24 Wall Street open as expectations of a breakout ran high.

Hang Seng drops most since 2008

Data from Cointelegraph Markets Pro and TradingView tracked a mundane trading day for BTC/USD after the pair hit weekly highs of $19,700 overnight.

Despite what Michaël van de Poppe, CEO and founder of trading firm Eight, called “way worse than expected” manufacturing data from the United States, Bitcoin suffered from a declining trajectory on the day.

This led on-chain analytics resource Material Indicators to suspect that resistance would remain in place.

“Sunday BTC failed all attempts to reclaim the 2017 Top,” it said, summarizing the latest 24 hours’ price action as per its proprietary trading indicators.

The price of Polygon’s MATIC (MATIC) coin could double by the end of 2022 or early 2023 due to a mix of extremely bullish fundamental and technical indicators.

Polygon wins high-profile clients

MATIC rose by nearly 6.5% four days after Nubank, a Brazilian fintech company backed by Warren Buffett’s Berkshire Hathaway and Softbank, confirmed that it selected Polygon’s “Supernets technology” for its blockchain and digital token, dubbed Nucoin.

“Nubank plans to airdrop the digital token to its customers in the first half of 2023,” the official announcement read, adding:

“These tokens will serve as the basis for its customers loyalty rewards program and will have benefits such as discounts and other advantages.”

As a result of the rally, MATIC was changing hands for $0.90 on Oct. 24, its highest level in three weeks.

Bitcoin (BTC) starts the last week of “Uptober” in a firmly average mood as the trading range to end all trading ranges continues to stick.

After a welcome attempt to break out, BTC/USD remains bound to a narrow corridor now in place for weeks.

Some of the lowest volatility in history means that Bitcoin has found a temporary function as a "stablecoin" — even some major fiat currencies are currently more volatile.

The longer the status quo drags on, however, the more convinced commentators are that a major trend change will enter.

This week is as good as any, they argue — macroeconomic data, geopolitical instability and classic volatility around the monthly close are all factors at play when it comes to shaking up a decidedly boring Bitcoin market.