Yesterday, on October 10, the price of Bitcoin broke out of the $6.600 mark after stabilizing at the $6,550 level for a few weeks.
The volume of Bitcoin saw an increase of 12 percent from $3.2 billion to $3.6 billion on Coinmarketcap and $2.1 billion to $2.38 billion on ShapeShift’s CoinCap.io.
Some tokens including 0x and Polymath have recorded decent 5 to 10 percent gains in the past 24 hours but the inability of Bitcoin to demonstrate a promising recovery in its volume to its previous level at around $4.3 billion has prevented the rest of the market from initiating a major rally.
Technical Analysts Predict a Big MoveThe majority of technical analysts and prominent traders in the cryptocurrency sector are anticipating a large move on either the upside or downside. Currently, due to the relatively low volume of the crypto exchange market, it is not certain that the next major movement of Bitcoin will be breakout of two resistance levels at $6,800 and $7,000.
Hence, in the days to come, it is possible that BTC experiences a substantial spike in its volume and breakout of the $6,800 level or sees another shakeout before initiating a meaningful short-term rally.
“The range that never ends. It’s getting tighter though and I suspect we’ll get a big move soon. Recent PA is stuck in the one big green candle. Be careful in both directions, I wouldn’t be surprised by big shakeouts before the real move,” Don Alt said.
But, as respected trader Crypto Dog explained, the probability of BTCinitiating a positive upside movement in the upcoming days is higher than the likelihood of the dominant cryptocurrency testing the $6,000 support level, given its stability and graudal increase in volume.
“BTC is nearing apex of this consolidation pattern, hopefully we see a break upwards in the next day or two. From my experience, the longer a consolidation pattern (the closer price ranges to apex), the more likely it is to break down rather than up.”
Previously, after major 60 to 80 percent corrections, Bitcoin has historically tended to initiate strong recovery following a few months of noticeable stability. In October 2013 for instance, BTC demonstrated a rate of volatility at around 4 percent before recording a three-fold surge in price by the end of the year.
Thus, it is entirely possible that the two-month stability period of BTC from August to October could allow the asset to test major resistance levels at $6,800, $7,000, and $8,000 in the weeks to come, as long as its volume can be sustained.
Rest of the MarketEthereum, Ripple, Bitcoin Cash, and EOS have struggled to see any major movement in the past week, recording a minor drop in value in the past 24 hours. The volume of XRP, the native cryptocurrency of the Ripple blockchain network, has dropped from its $1.5 billion peak to $395 million within a period of two weeks, which is concerning for the short-term price trend of XRP.
Tuesday, Oct. 9: Crypto markets keep trading sideways, with almost all top 20 coins by market cap in the red after seeing some growth yesterday.
Market visualization from Coin360
Bitcoin (BTC) is slightly down around 0.3 percent today, trading at $6,627 at press time. During the day, the major cryptocurrency dipped two dollars below the $6,600 threshold, and the intraday high amounted to $6,669. While markets continues to fluctuate in a mostly stagnant manner, Bitcoin is holding around 2 percent of weekly gains, as well as 5 percent gains over the past 30 days. Bitcoin’s dominance has been remaining almost flat within the day.
Bitcoin 24-hours price chart. Source: Cointelegraph Bitcoin Price Index
Ethereum (ETH) has been trading around the same levels within the day, fluctuating between $226 and $231. The second cryptocurrency by market cap is down just over 1 percent over the past 24 hours, and is trading at $227 at press time, up around 3 percent over the past 7 days.
Ethereum 24-hours price chart. Source: Cointelegraph Ethereum Price Index
Ripple (XRP) has seen bigger fluctuations over the 24 hour period, down around 2 percent, and trading at $0.48 at press time. Also considerably down around 10 percent on the week, the third top cryptocurrency is still holding its monthly gains, up around 77 percent over the past 30 days.
Ripple 24-hours price chart. Source: Cointelegraph Ripple Price Index
Total market capitalization has been hovering between $218 billion and $221 billion over the day. At press time, total market cap is $219 billion, while daily trade volume has slightly dropped to $11 billion.
Total market capitalization 24-hours chart. Source: CoinMarketCap
The only cryptocurrency among the top 20 coins seeing considerable gains at press time is Tezos (XTZ), which is up around 3.7 percent. The altcoin is trading at $1.41, up about 6 percent over the past 7 days.
Dogecoin (DOGE) is slightly up too, trading at $0.0056 at press time, up around 0.7 over the the past 24 hours.
TRON (TRX) and its lower neighbor IOTA (MIOTA) are both down over the past 24 hours, trading at $0.025 and $0.586, respectively. The rest of the top 20 coins are down between 0.3 and 2.5 percent on the day.
Founder of financial advisory organization DeVere Group Nigel Green has recently suggested that the currently stagnant condition of crypto markets could be a “signal that the cryptocurrency market is maturing.” Indeed, the markets have seen some sort of lack of volatility recently. Bitcoin reportedly hit “an inflection point with volatility at a 17-month low.”
Crypto analyst Joseph Young tweeted that the lack of volumes on markets last week was “concerning,” noting that it is “quite evident” that the industry is experiencing “seller fatigue.” Given the two-month stability of Bitcoin’s price, the “bottom could be in,” Young concluded.
Cointelegraph recently reported on a Juniper Research study which found that crypto markets are on the verge of “implosion,” while transaction volumes are dropping.
Yesterday, crypto research firm Diar released an analysis claiming that U.S. dollar trading volumes at crypto exchange and wallet service Coinbase have hit a one-year low in the third quarter of 2018