The Bitcoin levels to watch, as it remains in a corrective mode
By Noemi Jansana / Alejandra Zamora
Date: Thursday 28 Oct 2021
(Sharecast News) - The cryptocurrency market is on the verge of a further downward correction. Market consensus is building around the idea that the rally that propelled Bitcoin to $67,000, spurred by the debut of the first US ETF, has faded. Because of this, the outlook is one of clear profit-taking. The world's largest cryptocurrency plummeted around 10%, on Tuesday, and found support around $58,500, according to data from 'CoinMarketCap'.
As for the 'altcoins', many of them gave up an additional 10% to yesterday's falls, with a notable exception: Shiba Inu advanced 40% and is placed as the eighth 'crypto' by market capitalization. Ethereum remains in the red, but trades above $4,000 and the total market value sits above $2.4 trillion.
Experts indicate that this market behavior is due to the ETF's launch, "rather than spurring a new wave of bullishness and one of those wild surges associated with the cryptocurrency, the profit-taking was merely delayed,"stated Craig Erlam, an analyst at Oanda. Now it's broken back below $60,000, "which begs the question, just how big a correction are we facing?," he adds.
It is worth remembering that in 2017, when futures of the most traded of the 'cryptos' were first launched on the Chicago Mercantile Exchange, it triggered a strong wave of selling in the digital currency. The cryptoasset touched $20,000 after a 2,000% rise during the previous two months. However, it then triggered a bear market that lasted a year.
"While Bitcoin has a history of epic price surges, the corrections can be quite tasty as well. We've seen some support around $58,500 which was notable resistance on the way up," Erlam notes, "while $56,500 and $53,500 could offer further support below," he adds.
WHAT ABOUT SHIBA INU?
The deep green crypto-meme, Shiba Inu, lying in a sea of red, arouses equal parts envy, attention and awe. Born as a spin-off of Dogecoin - both inspired by the meme of a Shiba Inu dog - it amasses a value of $45.6 billion, compared to $31.6 billion for its rival. The reasons for the boom are several: More and more exchange platforms are offering its trade, it has launched its own line of NFTs -non-fungible tokens- and there is increasing interest and a certain FOMO -fear of missing out- encouraging the price.
"The price is super cheap ($0.00007396), unlike the big two, and the retail space has piled into it in an orgy-meme," comments Jeffrey Halley, analyst at Oanda.
Gains in the last week are around 200%.
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