Bitcoin (BTC) Erases October Rally as Bears Prevail
BTC erased $600 late on Thursday, as bears prevailed and pushed prices closer to $7,500.
Bitcoin (BTC) is on track to repeat the lows from a few weeks ago, as this week saw prices unravel from the $8,800 level down to as low as $7,530 on Friday. BTC has almost completely erased the late October rally, and now faces a bearish short term outlook, with a slim chance of an unexpected breakout.
BTC traded at $7,595.82 as of 8:36 UTC on Friday, after falling on Thursday as US markets opened. Trading accelerated to above $25 billion’s equivalent in the past day. Of those volumes, 77% are against Tether (USDT).
BTC sees yet another battle between bulls and bears, as it swung lower to $7,480, from a temporary climb above $7,630.
The current price move of BTC resembles the slide from November 2018, but there is more talk of capitulation. Miners, as well as other enthusiastic traders, may be leaving or withdrawing support from BTC.
At this point, the BTC attractiveness in the middle term is related to the halving event, though a rally is not guaranteed.
Despite expectations that BTC shows cyclical behavior, it is also possible BTC moves in unprecedented ways. Currently, the sentiment sways toward fear, but it is still uncertain if BTC will be obliterated and forgotten for years, or stage another rally in the spring of 2020.
The BTC market cap dominance increased to 66.1%, as altcoins suffered further. The recent price drop for BTC is seen as a slim chance to bring about an altcoin season. But the bears see altcoins as crashing even deeper.
The Bitcoin network hashrate also fell to below 86 EH/s, down about 15% from the usual levels above 100 EH/s. The hashrate may recover, but there are signs smaller miners may be leaving due to lowered profitability.