This week has been good for some, not for others. Bitcoin has failed to remain at support and is revisiting the high $7k region again. Technical indicators are predicting more declines, and total market capitalization has shrunk again since Monday.
Bitcoin has been on the back foot for most of this week, starting out at over $8,350 and falling to $7,960 by Friday. It took a fourth dip into the $7k range yesterday but rallied quickly as it has done previously. Currently, BTC is being traded at $7,964, which is almost a two-week-low as the bulls have failed to hold the support at $8k level.
A death cross is looming on the daily time frame though which usually indicates the strengthening of an extended down trend. The last time the 50 day moving average dropped below the 200 day MA on the daily chart was in March 2018 and we all know what followed that. Unless BTC can break above $8,400 and test resistance at $8,800, the ominous technical signal will form before the month is over.
For almost four months now, the trend has been downwards, resulting in a correction of 41% for BTC. This is nothing to panic about and has happened several times before in a bull run, which usually resumes after the pullback. Analysts have been pointing this out on crypto twitter;
“People waiting for $6K $BTC keep forgetting one thing. In bull markets $BTC drops 40% and then doubles its price.”
People waiting for $6K $BTC keep forgetting one thing.
— Galaxy (@galaxyBTC) October 17, 2019
BTC usually has strong retraces a few months prior to its respective halving, which is due in seven months. The next week or so will be crucial in determining whether this bull run has been for real or it has been one huge dead cat bounce if the bears continue to crush crypto.
Altcoin Winners and Losers
The week has seen a mixed performance from the altcoins, which are slowly clawing back Bitcoin’s market share. Ripple’s XRP has been one of the best performers this week, with a 7% gain to retouch the $0.30 resistance barrier.
XRP is getting momentum from the approaching Swell conference, an annual gathering of company and fintech executives, which is usually bullish for token prices.
Binance Coin has also performed well this week as the company carried out its quarterly coin burn destroying 2 million BNB. The exchange-based token has gained 10% since the weekend as prices approach $18.50.
Monero has also been running well this week with a gain of 13% to reach $60 before a slight pullback on Friday. Not all have made progress though with Ethereum, Bitcoin Cash, Litecoin, and EOS all losing ground slightly.