Bitcoin shows resilience as bulls target $21,000 resistance
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(Kitco News) – The week ended quietly in the cryptocurrency market as there was little change in price for most tokens following a mid-week rally that saw Bitcoin (BTC) top $21,000 for the first time in six weeks.
Traditional markets closed Friday on a strong note despite a 9% drop in the price of Amazon shares, with the S&P, Dow and Nasdaq all closing in the green, up 2.39%, 2.49% and 2, 87%, respectively.
Data from TradingView shows that an attempt by Bitcoin bears to break below support at $20,000 was well defended by bulls, who managed to reverse the momentum and lift the top crypto back above the $20,600 support.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin’s early hour decline was referred to as “a corrective pullback after hitting a six-week high on Wednesday” by Kitco senior technical analyst Jim Wyckoff, who noted that “Price action this week has seen a bullish upside ‘breakout’ from choppy and sideways trading area in recent weeks.”
As a result of this week’s market action, “A new price uptrend is in place on the daily bar chart,” Wyckoff said, adding, “bulls have the overall technical advantage in the near term suggesting even more upside price action in the near term. “
While many on crypto Twitter remain convinced that the current rally is just a bull trap destined to result in a new yearly low for Bitcoin, pseudonymous crypto trader Stockmonkey Lizards posted the following tweet highlighting a promising fractal pattern suggesting that the BTC price may soon start a new bullish cycle.
We are once again at a point where we have been before in 2015 and 2019 $BTC price back to 78.6 Fib. Retracement and the log bottom??
We also see the RSI MA Crossing (50/100) entering. This will mark the beginning of the bullish phase as always before ?? pic.twitter.com/ooqPCh3k81
— Stockmoney lizards ?? (@StockmoneyL) 28 October 2022
Altcoins continue to consolidate
While the bullish development in Bitcoin this week has given a renewed sense of hope to crypto traders, the trend of prices remaining flat while the traditional markets are seeing significant gains gives some cause for concern.
Despite each of the major stock market indexes rising more than 2% on Friday, action in the altcoin market was muted, with the number of tokens in red equaling the number in green and most prices showing less than a 2% change from yesterday.
Daily performance in the cryptocurrency market. Source: Coin360
Notable exceptions to this trend include an 8.71% gain for CEEK VR (CEEK), a 7.19% gain for Theta Fuel (TFUEL) and a 4.92% gain for Optimism (OP).
The total cryptocurrency market cap is now $1002 trillion, and Bitcoin’s dominance rate is 39.4%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
