Now’s not the time to increase your bitcoin exposure, analyst says
It’s groundhog day for digital currencies with most major coins trading at or near recent levels.
Bitcoin,BTCUSD, +0.21% the world’s largest digital currency with a market cap or more than $100 billion, is trading at $6,598.48, down 0.6% since Monday at 5 p.m. Eastern Time on the Kraken exchange. This after the No. 1 digital currency added 1% Monday.
As volatility continues to plummet, one analyst said investors should stay on the sidelines and wait for confirmation before making their next bet. “Investors should remain patient and wait for evidence of an improvement in ‘trend’ before increasing exposure,” said Rob Sluymer, technical strategist at Fundstrat Global Advisors, in a recent research note.
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“A move above the September real and relative highs remains the key resistance/reversal level that will need to be exceeded to signal the early stages of a trend reversal.”
The decline in volatility has seen bitcoin spend the majority of the previous four weeks trading inside the $6,400 to $6,800 range.
Things are much the same in the altcoin market, the market that consists of smaller coins other than bitcoin. After modest gains Monday, altcoins have returned those wins and trading near Monday’s opening levels.
In Tuesday trading, Ether was down 1.3% at $226.14, Bitcoin CashBCHUSD, +0.29% was down 2.9% to $514.00, LitecoinLTCUSD, +0.26% had lost 1.9% at $58.21 and the coin that runs on the Ripple protocol, XRPXRPUSD, +1.41% was at 47 cents, down 3.2%.
Bitcoin futures finished Tuesday in the red. The Cboe Global Markets October contractXBTV8, +0.15% closed down 0.7% at $6,580 and the comparable CME Group October contractBTCV8, +0.00% finished the day down 0.8% at $6,580.
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