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(Kitco News) – Bitcoin (BTCThe broader cryptocurrency market headed lower in trading on Thursday as the lack of any notable developments and the resignation of UK Prime Minister Liz Truss led to muted trading activity.
US stocks saw losses for a second day amid a barrage of third-quarter financial results on concerns that continued weakness will dampen any potential growth for the foreseeable future. At the markets’ close, the S&P, Dow and Nasdaq indices were all in the red, down 0.8%, 0.3% and 0.61%, respectively.
Data from TradingView shows that the Bitcoin bulls lost the support at $19,200 in the early hours of Thursday and briefly fell to a daily low of $19,825 before being able to climb back above the $19,000 support level.
4 hour BTC/USD chart. Source: TradingView
Low volatility, sideways and choppy trading ranges have been ongoing for the past five weeks, according to Kitco’s chief technical analyst, Jim Wyckoff, causing concern among traders as the tightening profile is bound to kick in sooner or later.
“For now, the bulls and bears continue to fight for control, with no definite advantage,” Wyckoff said. “This suggests more of the same in the near term.”
The consensus is that the price will go down
A survey by several analysts and the general consensus on crypto Twitter indicates that Bitcoin is likely to see a price drop in the near term as economic headwinds continue to build.
One potential path it could take was presented by a market analyst with the pseudonym Crypto Tony, who expects a year-end infusion to follow in the typical dump that regularly occurred at the start of the new year.
From a macro perspective, we can see a few different scenarios. This is one I’m expecting
Flat style with the last leg down. It would make an excellent year-end pump, followed by the standard new year and Chinese new year offal pic.twitter.com/VVluBgwsBO
– CryptoTony (@CryptoTony__) October 20 2022
As for the main factor causing widespread weakness in the crypto market – and the majority of global financial markets – Eight Global analyst and CEO Michaël van de Poppe posted the following tweet highlighting the main culprit.
The most hawkish commercial bank ever, debt/GDP around 5.6%, the highest ever.
The last peak was 5.0% in 1980. pic.twitter.com/4dgmz4EJK9
– Michael van de Poppe (@CryptoMichNL) October 20 2022
All is quiet on the altcoin interface
There is not much to report on the Altcoin market, where sideways trading and declining volume have kept the majority of the coins within two percentage points of their recently set prices.
Daily cryptocurrency market performance. Source: Coin360
Among the top gainers today are an 11.23% increase for Mdex (MDX), a 7.74% increase for Chain (XCN), and a 7.26% increase for Medibloc (MED).
The total cryptocurrency market capitalization now stands at $915 billion, with Bitcoin dominance at 40%.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.
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