Cryptocurrency market starts the new trading month on a more positive tone
The cryptocurrency currency market has opened the new trading month on a more positive tone after many of the leading digital assets closed September with heavy double-digit losses. The broader cryptocurrency market is largely positive, with Bitcoin trading back above its 200-day moving average, after suffering its worst monthly performance of 2019 so far.
In percentage terms, Bitcoin eroded around twenty percent of its value in September, leaving the number one cryptocurrency around forty percent down from its current 2019 trading high. However, Bitcoin still trades over one-hundred percent higher since January 1st this year, after enjoying strong buying demand from April until July.
Following last week’s breakout bearish move in Bitcoin, popular cryptocurrencies such as Ethereum, Ripple, and Litecoin had come under heavy downside pressure. The news that the launch of Bakkt’s physically traded Bitcoin futures contract had a lower-than-expected take-up had weighed heavily on cryptocurrency market sentiment.
Additional bearish news has followed the recent decline, with Bitcoin’s so-called hash rate tumbling, and various cryptocurrency exchanges experiencing security breaches. Reports have also surfaced that Bitcoin price manipulation may have occurred ahead of the expiration of large futures contracts.
In technical terms, the cryptocurrency market still remains bearish, with the total market capitalization of the entire cryptocurrency market continuing to trade below its 200-day moving average.
Around $50 billion was wiped off the value of the entire cryptocurrency market last month, with Bitcoin’s overall market dominance trading around sixty-six percent, after peaking above seventy percent in early September. The risk for many leading digital currencies in October is that without a bullish fundamental catalyst they could actually turn negative for the year.
ETH/USD Daily Candlestick Chart | Source: ActivTrader
Ethereum is one of the leading cryptocurrencies that is still capable of performing a major recovery this month. Bulls need to rally price back above the $185.00 level to inspire more short-term buying interest towards the $200.00 level. A sustained loss of the $150.00 level could see the ETH/USD pushed back towards the $118.00 level over the medium-term.
Written by Nathan Batchelor, External Analyst, ActivTrades
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