Previous days trips above the $21,000 mark could be the last for Bitcoin for now, new analysis concludes.
Bitcoin
BTC
to mark
$21,036
continued to consolidate at the weekly close on October 30 as concerns about a deeper pullback became apparent.
BTC/USD 1-hour candlestick (bit stamp). Source: TradingView
Dealers avoid new lungs under $21,000
Data from Cointelegraph Markets Pro and TradingView show circular levels for BTC/USD just below $21,000 on the day.
Weekend trading had produced an early return above the $21,000 mark, which was short-lived as Bitcoin bulls failed to provide the volume to sustain higher levels.
Now, the popular pseudonymous trader and analyst il Capo of Crypto felt that a change of direction is finally due for Bitcoin and Altcoins alike.
Altcoins themselves also performed strongly over the weekend, particularly led by Dogecoin.
DOGE
to mark
for 0.13 US dollars
, which is up another 25% in the last 24 hours at the time of writing and is rising to six-month highs.
“In my opinion, the top is in $BTC and $ETH, but some altcoins could pump higher,” Il Capo de Crypto wrote in part from a new Twitter update, adding:
“Do not enter new long positions and only enter my stops on profit (altcoins). Soon I will complete TP.
Profit taking has already been a hot topic in recent days, with on-chain indicators suggesting that the temptation would be significant if Bitcoin passes $21,000 more convincingly.
In response to Il Capo of Crypto, fellow Mark Cullen expressed similar caution about short-term market strength.
Bitcoin, he tweeted, had “spent too long below 21k for my liking, while alts / #ETH especially dry up. BUT, breaking the gold zone and I would consider a quick push higher first. I lose 20.4k and start to ask everything.
BTC/USD annotated chart. Source: Mark Cullen/Twitter
“Uptober” on track for 7% side gain
On the daily chart, BTC/USD broke above the 100-day moving average (MA) and managed to break above the 50-day moving average for the week.
Related: Bitcoin Price Due to Sub-$20K Drop, Traders Warn Amid Claim Miners “Surrender”
BTC/USD (Bitstamp) 1-day candlestick chart with 50, 100MA. Source: TradingView
Looking at the weekly and monthly charts, October 30 appears to offer Bitcoin’s highest weekly candlestick since mid-September.
BTC/USD 1-week candlestick (bit stamp). Source: TradingView
Meanwhile, at current prices, bitcoin rose 7% in October, marking its third weakest performance since 2013, according to data tracked by monitoring resource Coinglass.
BTC/USD monthly return chart (screenshot). Source: Coinglass
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
