With Bitcoin unable to make a big break, the market is taking a bearish approach. There have been fluctuations in the value and an overall decline in the performance of the market. This seems to have affected investor gains as the influx of capital lowered.
Vetle Lunde, Arcane Research senior analyst, pointed out that Bitcoin stayed relatively unchanged with only 5.89% growth in October. He cited data that shows that the popular cryptocurrency and exchange tokens outperformed the large caps index up until October 26. Lunde outlined that last month, Bitcoin’s spot market was driven by increased volume and lower volatility; it benefitted from a short squeeze that briefly invigorated the market. October’s last week recorded the largest short liquidation volume in crypto since July 26, 2021. However, the momentum did not create a substantial change in Bitcoin price.
Lunde said the July 26 squeeze saw a daily high-low variation of 15% as markets hastily moved up, whereas the October 25 and 26 moves saw daily high-low variations of 5% and 6%, respectively. Now with momentum stopped, traders should brace for longer consolidation. The best approach for Bitcoin to this market is to dollar cost average in the short-term rather than using leverage. Lunde also pointed out that Bitcoin has been experiencing uniquely low volatility and follows the U.S. equities market closely.
At the time of writing this article, Bitcoin was trading at $20,541. Ether was changing hands at $1,593. The altcoins have seen mixed takes with Polygon down by 3.06%, Polkadot down by 2.77%, Cardano and Solana down nearly 1.50%.
