Today both Bitcoin and Ethereum are doing very well

After a quiet weekend, today both Bitcoin and Ethereum have awakened in the crypto markets.

Last week was a slightly difficult week for both, so today’s small rebound is particularly interesting, although it is really tiny. 

The key point could be the end of September, a month often challenging for financial markets, and the imminent arrival of October, one of the months often best for crypto markets. 

How did Bitcoin and Ethereum wake up today after a weekend of declines?

Today the price of Bitcoin is 2.3% higher than yesterday. 

In fact, compared to the weekly low reached last Thursday below $109,000, the recovery is almost 3%.

The correction last week had cast a hint of fear on the crypto markets, with the CMC fear and greed index dropping to 32/100, well below the normal threshold of 50/100.

However, it was quite simple to understand that it was not a movement involving particular risks, because it was simply due to the rebound of the Dollar Index. 

The price trend of Bitcoin tends to be inversely correlated with the Dollar Index in the medium term, but sometimes the correlation also acts in the short term. 

By now, since August 22, this correlation has also been acting in the short term, with an almost perfect sequence that has been lasting since last Wednesday, September 24. 

In fact, the Dollar Index rose from 97.2 points to over 95.5 between last Wednesday and Thursday, triggering the decline in Bitcoin’s price from $113,000 to less than $109,000. 

Then on Friday, a sort of rebound began contrary to the Dollar Index, which today returned below 98 points, followed by a small rebound of Bitcoin from $109,000 to more than $111,000. 

In short, it’s simply all normal, to the point that it shouldn’t have generated any fear. However, it should be remembered that the fear and greed index primarily measures the emotional reactions of retail speculators, who in reality are a poor indicator because they often make mistakes. 

The Trend of Ethereum

In the current situation, the price trend of Ethereum is merely following the general trend of the crypto markets, and in particular that of Bitcoin. 

In fact, starting from Wednesday, September 24, ETH first dropped from $4,200 to $3,800, and then bounced back to the current $4,100. 

These are movements of greater magnitude than those of BTC, in percentage terms, but with the exact same direction. 

Nevertheless, between September 24 and 25, the price of Ethereum in Bitcoin also decreased, dropping from 0.037 BTC to 0.035. 

It is a minor movement, followed by a rebound that today brought it back to almost 0.037 BTC, but since ten days ago it was at 0.039 BTC, perhaps a downward trend is underway from this perspective. 

Note that after climbing from 0.018 BTC and 0.036 BTC from May to August, it had peaked at 0.042 BTC shortly after recording the new all-time high price in dollars, but by the end of August, it had already started to decline. In truth, this decline seemed to have halted in mid-September, but apparently, it has started again over the past ten days. 

This leads to the belief that Bitcoin has regained control of the crypto market, and this constitutes a good signal in anticipation of a possible start of a new bullrun. 

The Altseason

In fact, the altcoin season index of CMC until a few days ago was above the fateful threshold of 75 points out of 100 that identifies the start of an altseason, but there has been no real altseason.

It was merely a pseudo-altseason, or semi-altseason, as it wasn’t the altcoins in general that outperformed the price trend of BTC, but only a minority percentage of them. 

Additionally, starting from Sunday, September 21, the level of this index has returned below 75 points, and since last Friday, it has also remained steadily below 70. 

It’s as if after the middle of the month a brief anomaly was triggered, lasting less than a week, during which the prices of some altcoins attempted to enter a bull run but without the support of the entire crypto market. 

In the end, this anomaly has dissipated, although some altcoins (like BNB) are continuing to perform very well, and Bitcoin is reclaiming its leading role. 

Even all this still falls within the norm, because crypto markets often alternate brief moments of altcoin dominance with long periods of Bitcoin dominance.