Cryptocurrency Prices Correct as Bullish Momentum Fades
The cryptocurrency market experienced a correction on Thursday as the excitement generated by the possibility of a Bitcoin exchange-traded fund (ETF) subsided. This led to some traders taking profits and strategizing their next entry point before a potential bull run. The equities market also trended lower, with tech stocks weighing down major indices due to disappointing earnings reports. The downturn was further intensified by the Bureau of Economic Analysis announcing that the third-quarter U.S. gross domestic product (GDP) grew at a faster pace than expected.
Investor attention now turns towards the upcoming interest rate decision by the Federal Reserve on November 1st. At the close of the market, the S&P, Dow, and Nasdaq all finished in the red, posting losses of 0.88%, 0.48%, and 1.47% respectively.
Data provided by TradingView reveals that Bitcoin failed to defend support at $34,800, resulting in the top crypto sliding to a daily low of $33,750. It currently trades at $34,200, reflecting a 1.5% decrease over the past 24 hours. Senior technical analyst Jim Wyckoff noted that Bitcoin futures prices were weaker in early U.S. trading and highlighted the formation of a bullish pennant pattern on the daily bar chart, suggesting that the BTC bulls still have the technical advantage in the near term.
Renowned trader Peter Brandt declared that the bottom is in for Bitcoin, indicating that its price will increase from here. However, he cautioned that predicting the future path of any market is challenging as markets will always surprise. Brandt projected that new all-time highs for Bitcoin may not be reached until the third quarter of 2024.
Blockchain analyst Jamie Coutts shared Brandt’s view that the bottom is in for Bitcoin and compared the recent price action to the breakout above $10,500 resistance in July 2020. Coutts mentioned the entry of institutional players and the tokenization of real-world assets as driving forces for the crypto industry going forward. He emphasized the potential growth of the crypto market, as tokenization of real-world assets, account abstraction, and the rise of stablecoins are expected to attract a significant number of users in the coming years.
In the altcoin market, FLOKI led the gainers with a 21.9% increase, followed by Polymesh with a 17.57% gain and Gala with a 12.35% climb. Powerledger saw the biggest drawdown, experiencing a loss of 26.1%. The overall cryptocurrency market cap currently stands at $1.26 trillion, with Bitcoin’s dominance rate at 53%.
