It’s not Halloween yet, but today’s market activity has some cryptocurrency investors shivering.
It’s not the jolt of fear that you get when your chosen stock tanks to the tune of 50 or 60 percent – it’s more like the slight chill that raises your hackles a little bit when you start to feel autumn bring a crisp edge to the air.
In other words, most cryptocurrency stocks are down slightly today, which could have happened for any number of reasons. It’s not uncommon for the general market to dip on a Friday – and cryptocurrency stocks themselves are certainly no stranger to volatility.
The leading example is Bitcoin, where analysts are making a lot of hay out of a very slight drop below $6,500. That tiny dip looks perhaps more sinister next to this week’s price spike of $7,600, which was quickly erased by trading cycles during the same day.
It’s not just Bitcoin, either – a major basket of cryptocurrency stocks fromEthereum and Ripple down to Litecoin and Bitcoin Cash are all off of their feed today – trending a little bit downwards. However, seeing as how none have broken the 5% mark, there probably aren’t too many crypto traders running around today trying to unload their positions.
Instead, what you have is an investor base that’s following many different voices that are bullish about cryptocurrency long-term. Looking beyond current resistance and support levels requires big picture thinking – for example, while we’ve documented some of the concerns of detractors like the International Monetary Fund and Nouriel Roubini, for starters, we’ve also documented a lot of the enthusiasm that expert traders have for the crypt currency sector buy-and-hold community.
Dari Dorovskaya at CoinShark writes that these cryptic currencies “fell into the red zone,” publishing appropriately scary collection of jack-o’-lanterns, candles, a spider and a single slice of juicy pumpkin, over its rundown of ebbing crypto stocks.
Elsewhere, CNN weighed in mid-day to talk about BTC USD “in pullback action” and NewsBTC says Bitcoin price “remains vulnerable below $6,450.”
“A breakdown action below 6353-fiat, however, will have us open a short position towards 6320-fiat, a strong support level from September 25, as our primary downside target,” writes an analyst at CNN. “We could see some bullish entries here which would us allow us to open some long positions towards the next possible upside target, 6400-fiat perhaps. Anyway, placing a stop loss just 4-pips below the entry position anytime would protect us from any surprise reversals.”
Meanwhile, as of press time, Bitcoin value is at around $6,550 which actually seems a lot more like sideways action as it compares to three month and six month averages. Look for more as we proceed with caution toward All Hallows Eve.