Bitcoin price due sub-$20K dip, traders warn amid claim miners ‘capitulating’
Bitcoin () climbed back to $20,500 at the Oct. 28 Wall Street open as United States equities sought a stronger finish to the week.
Bets that $20,000 will fail as support increase
Data from and showed BTC/USD capitalizing on renewed optimism as markets began trading.
The atmosphere was volatile after tech stocks suffered a , with Bitcoin managing to avoid sustaining knock-on losses to the same extent.
At the time of writing, the S&P 500 and Nasdaq Composite Index were both up around 1.3%.
“In this current range bound phase after a prolonged downtrend,” popular trader CryptoYoddha to Twitter followers.
“Smart money/Institutional players aim to build up or take positions without significantly increasing the price. I’m feeling bullish.”
Economist, trader and entrepreneur Alex Krueger, meanwhile, laid out a likely scenario for the days ahead. Crypto, he argued, could retest recent lows before rebounding into next week.
“Thinking crypto lower tomorrow together with stocks, some late Friday hedging, quiet weekend, ETH mid to low 1400s, BTC mid 19000s get bought, then ride higher with the FOMC next week,” part of a tweet .
Markets have quietened considerably since Bitcoin hit six-week highs, the extent of short liquidations executed as a result.
Miners are the “biggest intra-Bitcoin risk” to the market
Looking at what could puncture the bullish mood outside of the macro, crypto research firm Reflexivity Research placed a special focus on miners.
After major mining firm Core Scientific , concerns over mining profitability in the face of an exploding hash rate continued to surface.
, theories over why the hash rate was diverging so much from the spot price even included Russia seeking to corner the industry.
“Miners remain the biggest intra-Bitcoin risk to the market in our view,” Reflexivity on the day.
Michaël van de Poppe, founder and CEO of trading firm Eight, meanwhile miners as “capitulating” — a status .
“Meanwhile; from a technical standpoint, $BTC looks to reach long territories here,” he added about BTC price action.
“Sweeping the low and should hold around $19.9K. If that doesn’t grant support, then I’m looking at $19.6K.”
Data from BTC.com the hash rate at around 257 exahashes per second, with the difficulty due to undergo a slight decrease at the next adjustment, still nine days away.
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