Bitcoin (BTC), which saw a drop below $54,000 on Oct. 7, was a result of traders waiting to see if Wednesday’s $5,000 gains would be retraced.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC flirts With $1-Trillion Asset Support
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD looked less confident Thursday. It was down 3% while aiming at $53,000 and its $1 trillion market capitalization before recovering.
Although the pair had reached local highs at $55,800, its highest since May’s miner rout, it didn’t take long before overly optimistic markets began to feel fatigued.
Analysts were using the volatility to their advantage to zoom out on spot price action.
Rekt Capital observed that BTC has historically enjoyed a positive monthly return of +32% for 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 better than average historical gains for October. The 2017 year with 47% growth in BTC/USD is currently the best.
Historical Bitcoin returns by month Source: Bybt
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.
Related: Bitcoin bears could be trapped if BTC prices rise above $50K — Here are the reasons.
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.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView