On Monday, a number of cryptocurrencies gained between 2-5% over the course of the day. Crypto prices have held steady into the next day and many digital assets will likely test key resistance levels in order to press forward.
Strong Resistance Lies Ahead
On October 6, the price of BTC fell below the $8K region to a low of $7,800 per coin. The following day saw some recovery as crypto bulls started to regain control. Since the big drop on Sunday, roughly $22 billion has been added to the combined market capitalisation of all 2,000+ digital assets. Tuesday, October 8, BTC is trading for $8,238 per coin and is up 0.51%. BTC has an overall market cap of around $148 billion and $16.6 billion in trade volume. These metrics have attributed to BTC dominance (the coin’s market capitalization in relation to the entire cryptoconomy’s valuation) dropping to a low of 66%.
Researcher Believes a Bitcoin ETF Is Imminent
“We’re closer than we’ve ever been before to getting a bitcoin ETF approved,” Hougan said during an interview on Monday on CNBC’s ETF Edge broadcast. “Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point,” Hougan insisted. “We will hear clearly between now and Monday what they think, and then, depending on what we hear, we’ll go forward from there. But it should be a very exciting week.” Many speculators think that the upcoming ETF decision is directly attributed to the rise in crypto prices. After rejecting countless bitcoin ETF attempts in the past, the SEC plans to make its decision on the Bitwise ETF on October 13, 2019.
Patterns Show Continued Downtrend
Cold Blooded Shiller believes BTC prices will continue following the downtrend which started after prices attempted to surpass the $14K mark and then consolidated around the $9,500 to $10,500 zone. While sharing a chart showing the BTC daily Renko, Shiller said the “downtrend is in full swing.”
Monetary Easing, Safe-Haven Assets, and 2019’s Market Performances
Despite all the scary headlines and central bankers like the Federal Reserve initiating a domino effect of monetary easing practices, some economists believe the economy is not that terrible. For instance, in the U.S. an investment strategist at BCA Research, Doug Peta, told the public that the labor market “remains vibrant enough to exert downward pressure on the unemployment rate, and services continue to expand despite the contraction in manufacturing, both here and abroad.” This was followed by the U.S. Bureau of Labor Statistics disclosing that the unemployment rate is at its lowest since 1969.
Nevertheless, a few data points do not outweigh the massive number of speculators who believe the economy will falter very soon. This has put the spotlight on safe haven assets like gold, which remains above the $1,500 spot price per ounce. However, even with the year-long gold rally seeing prices spike by 20%, Goldman Sachs has calledBTC the best-performing asset class in 2019.