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The signals have all been pointing to a large downwards move for Bitcoin and it may have just initiated as BTC drops below $8k yet again. Could this be the move that spells the return of the bear market and crypto winter, or will Bitcoin cling to support for another day?
Bitcoin Back in The $7k Range
Within the past hour Bitcoin has fallen back below $8,000 for the fifth time this month. According to Tradingview.com BTC began its slide in late US trading yesterday and continued into the Asian session this morning. It bottomed out at just above $7,900 and appears to be holding just above that at the time of writing.
The bearish signals have been mounting up as the month long consolidation period has drawn out. A big move has been expected as one usually follows the accumulation of these signals.
As trader and analyst Josh Rager pointed out, historical volatility is descending to levels that would indicate a breakout.
“With a slow sideways market, we’ll see descending HV that indicates a strong reaction in price action ahead and rise in volatility”
Yesterday the popular analyst observed a Bollinger band squeeze which has also led to breakouts historically. He added that with price still below the 20 day moving average a downwards move has higher probability.
Then there is the death cross on the daily chart which is about to form as the 50 day moving average falls below the slow 200 day. This one is more ominous as it spells a long term trend reversal which could be the end of this year’s rally and the return of crypto winter.
That cross is likely to occur today or tomorrow if there is no upside momentum.
Crypto Market Cap About to Crumble
Altcoins clearly have not been able to decouple from Bitcoin as it has corrected 42% from its peak this year. There has been no altseason and a sea of red is engulfing them all again today.
The ‘Trading Room’ crypto twitter account has identified a trendline for total market cap that if broken could result in a massive dump below $200 billion.
“This one Trendline is holding the entire Market’s fortune for next few weeks.”
Closing all open Positions and staying flat until i see a clear bounce from this trendline. Will open SHORTS if the Treandline breaks down
This one Trendline is holding the entire Market's fortune for next few weeks. Keep an eye#Bitcoin $BTC $Total MarketCap pic.twitter.com/0x1GYiLQNA
— Trading Room (@tradingroomapp) October 23, 2019
After today’s losses total market cap is currently at $217 billion having dumped $7 billion on the day. It has not fallen below $200 billion since early May when things were clearly bullish for Bitcoin and its brethren.
All altcoins are dumping today with Ethereum plunging below $170 in a 4% slide and XRP dropping back below $0.29 as momentum wanes.
Bigger losses of over 5% are going on at Bitcoin Cash, BSV, Tron, Cardano, Chainlink and Tezos. If altcoins are losing this much before BTC drops below support, they will get obliterated when the big dump finally occurs.
Image from Shutterstock
