A recently released research report (titled: “Up, Up and Away: October 2021 Market Recap & Outlook”) from U.S.-based crypto exchange Kraken offer a recap of the most significant events that took place in the crypto market last month as well as price analysis for Bitcoin, Ethereum, and Solana.

Here are a few highlights from Kraken’s report:

Bitcoin ($BTC)

Although there’s no telling where and when BTC may hit a market cycle top, one can look at BTC’s upper Bollinger band (±4.5 standard deviations) and 1-month RSI for insight. Historically, BTC’s cycle tops have coincided with BTC hitting both its upper Bollinger band AND the 1-month Relative Strength Index (RSI) hitting a reading of 96.

As of month-end, BTC’s upper Bollinger band stood at $112K, and its 1M RSI resided at 71.7 (“overbought”). History suggests there is potential for technical upside.

Ethereum ($ETH)

ETH’s remarkable +43% return in Oct. corresponded with the cryptoasset successful reclaiming band 5 of its Logarithmic Regression Rainbow after falling back below said support level in mid-Sept. and successfully bouncing off of it earlier in the month. Although ETH is trading above band 5 as of month-end, a backtest of said level is not out of the question either.

Should ETH continue to press higher and refrain from falling back down to band 5, the next big level of resistance that ETH might look to test next would be band 6 at roughly $6,500. With ETH having finished Oct. at $4,200, a test of said resistance level implies a 50% gain.

ETH’s rally was also accompanied by its dominance roaring +1.2 percentage points to a 1-month high of 19.2% as of month-end; be that as it may, ETH’s dominance remains notably below the 20.1% reading it hit in May when the cryptoasset scored an all-time high of $4,380. This tells us that despite ETH’s rally to a new all-time high, ETH commands a smaller market share than last time around and may have relatively weaker momentum compared to its peers.

Solana ($SOL)

After climbing into the top 5 cryptoassets by market cap, SOL has continued to attract increasingly greater attention from new and existing market participants – especially institutions. With SOL appearing to remain in what could be deemed its third wave of ‘price discovery,’ the case could be made that SOL climbs meaningfully higher into the near year.

Looking at the 1-week chart, one will see that SOL appears well-positioned to test the upper band of a near 18-month broadening ascending wedge pattern formation. A retest of said resistance would come just after the crypto asset testings the wedge’s resistance in Sept. after hitting an all-time high of $216.

A test of this resistance would imply that SOL climbs as high as $400 – $500 as early as next month and as late as 1Q2022. However, a plunge back down to the wedge’s support in the forthcoming weeks could mean a return to roughly $125.


The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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