by Viko

Bitcoin’s price was quoted in five digits across cryptocurrency exchanges at the end of 26th but the breakout into $10,000 was short-lived. It came as a surprising event but that’s what cryptocurrency markets are. Bitcoin jumped to $10,350 at 01:45 UTC — the highest level since Sept. 24. Meanwhile, the global average price, as calculated by CoinDesk’s Bitcoin Price Index, clocked a high of $10,332. This surge coincided with U.S. stock indices, namely the S&P 500, approached and effectively tapped its previous all-time high, Bitcoin and the cryptocurrency market at large surged. Some analysts also claim that this 42% move (42% at the peak of $10,600) was something driven by the news that Chinese President Xi Jinping had endorsed blockchain technologies. Other possible bullish catalysts include the fact that Bakkt’s Bitcoin futures set a new record as institutions have started to trickle in once again, and the news that the Federal Reserve has been mandated to inject more money into the financial system to keep it running. How much of this money will flow in the crypto markets is still a question.

On October 23, Bitcoin has dropped by $300 in the last 24 hours. Even so, the outlook remains neutral as key Fibonacci retracement support at $7,850 is still intact. While the reason behind the recent drop is not clear, some community members attribute Bitcoin’s latest surge to 661 BTC futures contracts liquidation on the Bakkt platform, with the last recorded trading price settling at $7,890 per Bitcoin. BTC, however, picked up a bid around $7,500 in the early U.S. trading hours on Friday and rose to $8,800 at 17:20 UTC. Prices were then settled in the narrow range of $8,500 to $8,700 for a few hours, before printing highs above $10,000 earlier today. Essentially, the death cross trapped sellers on the wrong side for the fourth time since 2014.

In the past two days, there were heavy swing moves in BTC from the $7,500 support against the US Dollar. The BTC/USD pair rallied more than 20% and broke many hurdles near $8,500 and $9,000. Moreover, there was a close above the $8,500 resistance area and the 100 simple moving average (4-hours). Finally, the price rallied above the $10,000 resistance and traded close to the $10,600 resistance area. The short-term reversal from $10,500 to sub-$9,000 levels has made some traders flip turn bearish. They claim that it is possible that this volatility is nothing more than a short correction. However, the bulls failed to remain in control and a top was formed near $10,591. Later, there was a strong downside correction below the $10,000 level. The price traded below the 23.6% Fib retracement level of the rally from the $7,420 swing low to $10,591 high.

Further, the rise from lows below $7,400 to highs above $10,300 is reportedly the third-largest 24-hour price gain in bitcoin’s history. More importantly, there is a short term bullish trend line forming with support near $9,080 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line and $9,000, bitcoin price could test the next major support near the $8,600 area. The $8,600 and $8,500 levels are crucial supports since they acted as hurdles previously. Additionally, the 61.8% Fib retracement level of the rally from the $7,425 swing low to $10,591 high might also provide support.

The RSI for BTC/USD is moving lower and is close to the 50 level. The MACD for BTC/USD is slowly moving in the bearish zone.

Altcoins are gaining ground with NEO and TRON leading the pack. Ethereum, the second-largest digital asset with the current market capitalization of $20 billion, has gained nearly 4% in recent 24 hours. At the time of writing, ETH/USD is changing hands at $185.00, off the intraday high of $190.19. Looking technically, ETH/USD a sustainable recovery above $180.00 improves the short-term picture and signals the price may continue moving upwards with the next bullish aim at $190.00. Ripple’s XRP has made its way above $0.3000 during early Asian hours on Monday.


Oct 27, 2019

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