A correction after such a monumental crypto rally is to be expected though some industry observers will always see the negative side of things. Bitcoin has largely held on to gains though it appears to be weakening, while the altcoins are falling back at a faster rate.
Bitcoin Holds Above $9,000
Many were expecting a big dump following the weekend’s rally but Bitcoin has held on to most of its gains and remains 24% higher than it was at the end of last week.
According to Tradingview.com BTC crept close to $10k again during trading yesterday but there was too much resistance at this level. Since then it has pulled back to an intraday low of $9,200 and is currently trading just above that.
A plunge through the $9k level could see BTC back at $8,600 very quickly and this could lead to further declines below $8k again. This would invalidate the recent rally according to economist Alex Krüger who remains bullish.
$BTC. Chart. Bullish. Invalidation: 8200-8000. pic.twitter.com/jJWoGGUZqj
— Alex Krüger (@krugermacro) October 28, 2019
The Bitcoin bashers have already been out spouting about a whale manipulated pump and dump that was nothing to do with China. Peter Schiff just couldn’t resist despite the fact that his beloved yellow metal has never moved by such a massive amount in such a short space of time.
Schiff has altered his stance on crypto recently with a few positive things to say but was back bashing again yesterday with this gem.
“It clearly looks like market manipulation by whales looking to sucker in momentum buyers. By pumping up a technically weak market, they are able to dump more #Bitcoin at higher prices.”
He refutes the fact that China had anything to do with it despite nearly all Chinese crypto assets surging even higher yesterday.
Altcoin Correction
As expected, the altcoins are correcting today with those making the most currently dropping the most. While this may look like a pump and dump, total crypto market capitalization remains above $245 billion at the moment which suggests the inflow of capital is still there.
Ethereum has remained flat, holding on to gains and trading just below $185 at the time of writing. If ETH can retake $200 and move independently of Bitcoin in the next week or so there could be a real rally ahead as Istanbul gets rolled out.
XRP has fallen back below $0.30 but only just, while Bitcoin Cash remains steady at $265. Litecoin and EOS are both weakening with a 3-4% loss but Tron has held on to most of its big gains yesterday.
There is a lot of red across the boards at the moment but losses are minimal for most and largely expected after such a big move. Price does not move in a straight line!
Image from Shutterstock
