As unstable support levels make it possible for volatility to rise, a day of gains could be in peril.
Bitcoin ( BitcoinTC), fell below $54,000 on Oct. 7, as traders waited for confirmation of Wednesday’s $5,000 gains.
BTC flirts With $1-Trillion Asset Support
Data from Cointelegraph Markets Pro, TradingView indicated that BTC/USD looked decidedly less confident on Thursday. It was down 3% while aiming at $53,000 and its $1 trillion market capitalization before recovering.
The pair had reached local highs of $55,800 — their best since the May miner’s rout. But it didn’t take long before overly optimist markets began to show signs fatigue.
Analysts were taking advantage of volatility to zoom out once again from spot price action,
Rekt Capital stated that historically, BTC has enjoyed a positive monthly return of +32% for the month of October.
“This October, $BTC rallied +29%. It’s only week one of the month.”
Although impressive, this performance could signal the beginning of consolidation. Bitcoin will be able to gain higher support, before accelerating to $63,000 per month.
This monthly close, also known as the “worst case scenario,” would still be far greater than average October gains. The 2017 year that saw the largest increase in BTC/USD was 47%.
Dogecoin wins the race against altcoins
Altcoins continued dragging their feet after Bitcoin’s gains of the day — something that was not lost on mainstream media.
Dogecoin ( DOGE) was the only cryptocurrency to match weekly gains in BTC/USD, echoing Q1’s familiar actions. Both were up 25% in seven days as of the writing.
The largest altcoin Ether ( ETH) was more quiet, but it posted 20% weekly returns, and circling $3.575.