Bitcoin price falls to $19,000 support as Treasury yields rise
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(Kitco News) – Bitcoin (BTC) and the broader crypto market trended lower in trade on Thursday as the lack of any notable developments and the departure of UK Prime Minister Liz Truss led to muted trading activity.
U.S. stocks suffered a second day of losses amid a barrage of third-quarter economic results that raised concerns that continued weakness will dampen any growth in the foreseeable future. At market close, the S&P, Dow and Nasdaq were all in the red, down 0.8%, 0.3% and 0.61% respectively.
Data from TradingView shows that Bitcoin bulls lost support at $19,200 in the early hours of Thursday and briefly fell to a daily low of $19,825 before managing to climb back above the $19,000 support.
BTC/USD 4-hour chart. Source: TradingView
The low volatility, sideways and choppy trading range has been going on for the past five weeks,” according to Kitco senior technical analyst Jim Wyckoff, causing anxiety levels among traders to rise as the tightening coil is bound to pop sooner or later.
As for now, “Bulls and bears continue to battle for control, with neither having a definite advantage,” Wyckoff said. “It suggests more of the same in the near term.”
The consensus is that the price will fall
A survey of various analysts and the general consensus on crypto Twitter is that Bitcoin is likely to see lower prices in the near term as economic headwinds continue to mount.
A potential trajectory that could play out was provided by pseudonymous market analyst Crypto Tony, who expects a year-end pump to be followed by the typical dumping that has regularly occurred around the start of a new year.
From a macro perspective, we could see a few different scenarios playing out. This is one I’m looking forward to
A flat pattern followed by the final stage down. Would be an excellent end of the year pump, followed by standard New Year and Chinese New Year dumps pic.twitter.com/VVluBgwsBO
— Crypto Tony (@CryptoTony__) 20 October 2022
As for the main factor causing widespread weakness in the crypto market – and the majority of global financial markets – Eight Global analyst and CEO Michaël van de Poppe posted the following tweet highlighting a major culprit.
The most hawkish CB ever, debt/GDP vs 5.6%, the highest ever.
Last peak of 5.0% in 1980. pic.twitter.com/4dgmz4EJK9
— Michaël van de Poppe (@CryptoMichNL) 20 October 2022
Completely quiet on the altcoin front
There is not much new to report in the Altcoin market, as sideways trading and reduced volume have kept most tokens within two percentage points of their recently established prices.
Daily performance in the cryptocurrency market. Source: Coin360
The biggest gains of the day included an 11.23% increase for Mdex (MDX), a 7.74% increase for Chain (XCN) and a 7.26% increase for Medibloc (MED).
The total cryptocurrency market cap is now $915 billion, and Bitcoin’s dominance rate is 40%.
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