- A fresh analysis concludes that Bitcoin’s price above the $21,000 level could be its last for some time.
- Despite being up 7 percent this month, Bitcoin’s recent bullishness represents its third-weakest performance since 2013.
As worries over a stronger retracement grow, the leading digital asset, Bitcoin’s price steadied into the October 30 weekly close. According to TradingView data, BTC/USD traded below the $21,000 region for that day. While Bitcoin traded above the $21,000 level over the weekend, the asset’s bulls couldn’t help it sustain that price level.
Trading volumes were low on Sunday. Thus, the leading digital asset couldn’t sustain its bullish run. At the moment, BTC trades around the $20,500 mark. Furthermore, BTC’s market cap dropped below $400 billion while its altcoin dominance remains below 39 percent.
Meanwhile, anonymous crypto trader and analyst, Il Capo of crypto, said that cryptocurrencies, including Bitcoin, were already due for a change. Altcoins also exhibited strong performances over the weekend, with Dogecoin leading the way. The price of the meme-themed crypto surged by an additional 25 percent over the past day, pushing it to a 6-month high.
In his fresh Twitter update, Il Capo of crypto wrote that the top two digital assets (BTC and ETH) are in for the top. However, he added that some altcoins could also experience price spikes.
Quick update:
Shitcoins pumping and $BTC distributing between 20500-21200, as expected.
In my opinion, top is in for $BTC and $ETH, but some altcoins could pump more. Not entering any new long positions and just trailing my stops in profits (altcoins). I will fully TP soon. https://t.co/DE3aW5HQr8
— il Capo Of Crypto (@CryptoCapo_) October 30, 2022
There have been several discussions regarding profit taking over the last few days. However, on-chain indicators suggest that taking profits will only be a viable option once Bitcoin steadies over the $21,000 price level. Fellow analyst, Mark Cullen, responded to Il Capo of crypto’s predictions and warned traders to be cautious as the market has a short-term strength.
Cullen tweeted that BTC had stayed far too long below $21k while eth and other altcoins have had a strong bullish run. He added that he would consider a push higher immediately after BTC crosses the ‘golden zone – $21,000.’ However, if it loses $20,400, his doubts would increase.
7 percent gains in October
Using the 24-hour chart, BTC/USD had managed to beat out the 50-day Moving Average (MA) last week but continues to struggle with the 100-day MA. Finally, using the weekly and monthly charts, BTC closed on its highest weekly candle since September 15 on October 30.
Its current price indicates that it has gained 7 percent this month. However, recent data from crypto tracking firm, Coinglass, shows that Bitcoin’s gains this month represent its third-weakest performance in nine years.
Meanwhile, between November 1 and 2, the federal open market committee (FOMC), which includes the US Fed, will meet to discuss whether to hike interest rates as it has done recently. Analysts already expect that the Fed will hike interest rates again. But they couldn’t predict whether the hike would be as aggressive as in July and September. A less aggressive rates hike could fuel series growth for the crypto market.