Crypto Weekly Recap 26.10.18
The lowest volatility for more than a year can become the “new normal” for crypto markets.
After last week’s roller coaster ride seen on Bitcoin, its price established an equilibrium slightly below 6500.
Now BTC is floating outside of the descending triangle formation which was forming on the daily chart and had been broken last week.
The 50-day EMA became the strong resistance, which Bitcoin is, so far, unable to break.
Today is October expiration of Bitcoin futures on the CME, which could give impetus to any new action.
Ethereum’s price is stuck at 200, while a tapering triangle formation is establishing on the daily chart.
ETH is still well below the 50-day EMA defining bearish momentum for the world’s second largest cryptocurrency by market cap.
If Bitcoin’s action ignites, Ethereum will follow and a new sharp movement will start with its first target above the 50-day EMA around 225.
Over the past few weeks we have seen very unusual conditions for crypto markets, where volatility almost has gone away.
The current Bitcoin volatility is less than the volatility of major US stocks, and some experts see this as signs of the maturing of crypto markets.
If the low volatility becomes the “new normal” for this type of financial asset, large institutional money could finally be attracted into this market place.
Current Bitcoin Dominance = 53%
Current Total Market Capitalization = $209B
All-Time High of Total Market Capitalization = $834B on January 7th, 2018
Current Drawdown from ATH = -75%