Decentral Block Post

Bitcoin (BTC) held gains above $21,000 into Nov. 5 as the U.S. dollar posted a rare major daily decline.

Dollar dives 2% as risk assets recover

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on prior strength to hit highs of $21,473 on Bitstamp — a new seven-week high.

The pair had benefited from the latest United States economic data, while the dollar conversely suffered. The U.S. dollar index (DXY) lost 2% in a day for the first time in years, helping fuel a risk asset rally.

“And, just like that, Bitcoin took out all the highs, volume is increasing and it's back above $21K,” Michaël van de Poppe, CEO and founder of trading firm Eight, commented.

“I'm assuming we'll continue towards $22.5K from here, but have a slight correction before continuing (as we took out all the liquidity). Buy the dip season.”

Since March 2022, traders and so-called analysts have been forecasting a policy change or pivot from the United States Federal Reserve. 

Apparently, such a move would prove that the Fed’s only available option is to print into oblivion, further diminishing the value of the dollar and enshrining Bitcoin (BTC) as the world’s future reserve asset and ultimate store of value.

Apparently.

Well, this week (Nov. 2) theFed raised interest rates by the expected 0.75%, and equities and crypto rallied like they usually do.

But this time, there was a twist. Prior to the FOMC gathering, there were a few unconfirmed leaks that the Fed and White House were considering a “policy pivot.”

In the past year, Polygon (MATIC) has focused on growing their list of high-profile partners which includes luminaries like Disney, Starbucks and Robinhood. The recent announcements of partnerships with both Instagram and JPMorgan have speculators pushing the token price up nearly 200%. 

In addition to partnerships, blockchain adoption through network usage is important to analyze. Blockchain adoption can be analyzed by looking into daily active users of the blockchain, protocols using the technology, number of transactions and total locked value.

Total value locked on Polygon rises above $1B

Total value locked (TVL) is one cryptocurrency indicator used to assess the market’s sentiment towards a particular blockchain. TVL on Polygon requires utilizing the MATIC blockchain and locking funds in the various DeFi platforms available across the network.

Rising TVL is a sign of growth, or new liquidity entering the ecosystem but it does not necessarily mean that the network and associated assets are “turning bullish.”

While the top 3 protocols, Ethereum (ETH), Binance Coin (BNB) and Tron (TRX) all have a TVL over $5 billion, MATIC, Avalanche (AVAX) and Arbitrum are the only others with over $1 billion in TVL.

Dogecoin (DOGE) has surged nearly 100% quarter-to-date (QTD) on hopes that Elon Musk would integrate the token onto the Twitter platform. However, DOGE's potential to continue its uptrend in the coming weeks is low, one popular market analyst argues.

Short Dogecoin hard?

Independent market analyst GCR said he is moderately short on DOGE based on its price's recent reaction to a Musk tweet. Notably, DOGE formed a local top at $0.158 on Nov. 1. The same day, Musk shared a picture of his pet Shiba Inu wearing a t-shirt with the Twitter logo.

GCR argues that the Musk-effect is wearing off when it comes to Dogecoin's potential integration into Twitter, meaning that most of the gains are already priced in. Therefore, if the actual integration happens, it will likely become a sell-the-news event. 

Overbought correction begins

Meanwhile, Dogecoin continued its correction move on Nov. 4, three days after topping out at $0.158.

DOGE's price dropped to as low as $0.115 on Nov. 4, in part due to rumors of Twitter pausing its crypto wallet development project. That brought the token's net percentage correction from the Nov. 1 local top to nearly 27%.

Dogecoin (DOGE) has surged nearly 100% quarter-to-date (QTD) on hopes that Elon Musk would integrate the token onto the Twitter platform. However, DOGE's potential to continue its uptrend in the coming weeks is low, one popular market analyst argues.

Short Dogecoin hard?

Independent market analyst GCR said he is moderately short on DOGE based on its price's recent reaction to a Musk tweet. Notably, DOGE formed a local top at $0.158 on Nov. 1. The same day, Musk shared a picture of his pet Shiba Inu wearing a t-shirt with the Twitter logo.

GCR argues that the Musk-effect is wearing off when it comes to Dogecoin's potential integration into Twitter, meaning that most of the gains are already priced in. Therefore, if the actual integration happens, it will likely become a sell-the-news event. 

Overbought correction begins

Meanwhile, Dogecoin continued its correction move on Nov. 4, three days after topping out at $0.158.

DOGE's price dropped to as low as $0.115 on Nov. 4, in part due to rumors of Twitter pausing its crypto wallet development project. That brought the token's net percentage correction from the Nov. 1 local top to nearly 27%.