Digital currency markets have seen a strong price spike on Friday, adding billions to the overall market capitalization of the entire cryptoconomy. The surprise upward trend shows a few of the top-performing cryptocurrencies have gained between 10-20% in the last 24 hours.
Also read: FATF Starts Checking How Well Countries Implement Crypto Standards
Cryptocurrency Prices Show Major Improvement
Five days ago, our last market outlook report indicated that cryptocurrency markets faced a crucial turning point and the road turned out to be southbound. The $220 billion dollar market cap slid to a low of $209 billion. On October 23, in less than 15 minutes BTC prices dropped significantly from the $7,900-8,100 range to a low of $7,365 across global exchanges. Of course, many other digital currency markets have been correlated with BTC’s movements and followed the coin’s dive downwards. This Friday there’s a touch more optimism in the air before the weekend as a slew of assets are up between 10-20% or more. In fact, the significant price spike came literally out of thin air in a matter of minutes.
BTC markets are up 11% and up 4% across the last seven days. At $8,398 per coin, the digital currency has an overall market valuation of around $150 billion and a touch over $21 billion in 24-hour global trade volume. Ethereum (ETH) is swapping for $177 each and there’s roughly $7.9 billion in ETH trades today. Behind ETH, the digital currency XRP is up 5% today but is still down -0.13% for the week. Tether is still holding down the fourth largest market cap position as USDT has been a dominant force during the last few dumps. USDT has $22.5 billion in global trade volume which is $5.4 billion dollars more than BTC today.
Bitcoin Cash (BCH) Market Action
Bitcoin cash (BCH) commands the fifth largest market valuation with a cap of approximately $4.41 billion at the time of publication. There’s $2.23 billion in BCH trades today and each BCH is swapping for $243 per coin. BCH has gained 12.7% today and is also up 14.28% over the course of the last seven days. Since our last market outlook, BCH has jumped from the seventh most traded coin to fifth position on October 25. The largest pair traded with BCH today is USDT with 64.4% of all BCH trades.
This is followed by BTC (17.89%), USD (6.73%), ETH (6.43%), and KRW (2.79%) pairs. Crypto analyst John Isige says that BCH is “defiantly positive on Friday” and further explains that at $220 a coin, BCH bulls are currently targeting the $230 range. “New higher lows pattern is forming, besides, the price is teetering above the 50 Simple Moving Average (SMA) on the one-hour chart,” Isige detailed prior to the recent price pump. “In the event, bitcoin cash manages to clear the resistance at $220, the crypto will come face to face with the resistance, a confluence created by the 61.8% Fibo and the 100 SMA at $221.94.” BCH brushed past these price zones in no time at all and Isige’s morning analysis proved correct.
US Congress Members Comment on Bitcoin Again
This week crypto onlookers watched the congressional hearing with Facebook’s CEO in regard to the Libra digital currency project. A few U.S. Congress members told the public that cryptocurrencies like bitcoin were very dangerous to the American economy. Representative Brad Sherman, a Democrat from California, once again exclaimed that bitcoin was a threat to the U.S. dollar.
Representative Warren Davidson told hearing attendees that Facebook should have used bitcoin instead but the company already explained a while back that it believed BTC cannot scale properly. Still, other members of Congress stood by BTC and Republican Representative Patrick McHenry told Laura Shin that he’s enthusiastic about the future of bitcoin and he’s a long-term believer. “Libra is not cryptocurrency — we need to stop lumping it together with very real, very important projects that are out there like Bitcoin,” McHenry said during his interview with the podcast host.
BTC Charts Show a Death Cross Scenario
While many people are focused on the entire cryptoconomy, others are focused on BTC movements to get an idea of where things are headed. Recently BTC traders have noticed a death cross scenario on the charts and a few traders expect some more bleeding. The Twitter account Klondike (crypto rush) said: “Death Cross is Coming? Right — Very soon MA50 will cross MA200 from top to the bottom. Previous death cross was formed 1.5 years ago when BTC cost $9000, then it dumped to the $3000 — Just saying.”
“It’s typical in TA to sell the death cross and buy the golden cross,” another crypto trader emphasized. But here it seems both are buying opportunities — Will this recent golden cross, like the last, mark the beginning of a bull run?” The death cross pattern is used in technical analysis to predict an upcoming selloff. Traditionally the short term moving average (50-day) drops below the long-term moving average (200-day). BTC’s death cross pattern has been seen since the last day in March.
Extreme Fear Could Bring Final Capitulations
During our last market outlook, we also explained that the Crypto Fear and Greed Index (CFGI), a multifactorial crypto market sentiment analysis, had shown the crypto sentiment at the time was reading “fear” but the data is now pointing to “extreme fear.” Some speculators believe digital currency markets have hit bottom and due to all the bearish articles and negative social media posts a strong rally may be on the cards.
Lots of traders don’t think any of the recent dumps have been a surprise and that Bakkt futures investors knew exactly what they were doing. BTC has been quite predictable and if the bottom is not in it’s likely close. Because bearish sentiment has grown further, digital currency enthusiasts may still see some massive final capitulations.
Google’s Quantum Computer Successfully Cracking Bitcoin Is Hogwash
Google’s quantum computer has everyone on the internet in a tizzy and some naive mainstream journalists believe it could crack a slew of digital assets. “A powerful enough computer, similar to Google’s quantum computer, could solve these classical equations quickly enough to crack not only bitcoin but also the encryption that the internet is built on,” columnist Billy Bambrough writes for Forbes. A politician from Arizona Chris Hindle believes the Quantum computer developed by Google is “bad news.”
Blockchain developer Peter Todd disagrees and stated: “It means nothing because Google’s quantum breakthrough is for a primitive type of quantum computing.” “We still don’t even know if it’s possible to scale quantum computers,” Todd added. In 2017, Andreas Antonopoulos detailed that Bitcoin has two layers of protection against quantum computing and breaking Bitcoin’s elliptic curve would reveal the most important secret.
“Do they use that to break Bitcoin?” Antonopoulos asked a crowd onstage in 2017. “The simple answer is ‘no’. We know from history that if you have such a thing, this is the most important and well-guarded secret.” Antonopoulos continued:
Any time you use it you have to come up with a parallel construction story that tells the world how you managed to break that encryption without using such a thing, because such a thing doesn’t exist.
Traders Continue to Measure Crypto Sentiment Coupled With Technical Indicators
Overall, markets have improved since the last dump and many speculators blamed Google’s quantum computer, Bakkt’s futures, and Zuckerberg’s testimony with congress. Traders are still inclined to believe that crypto markets are at yet another crossroad and no one truly knows which way it will turn. All eyes have been focused on charts, volumes, Elliot waves, death cross patterns, moving averages and more in hopes they can outsmart the market before it moves again. Despite the keen eyes on market indicators, surprises like today’s market spike came out of nowhere.
Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.
Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded at 12:30 p.m. EDT.
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