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(Kitco News) – Cryptocurrencies traded flat on Tuesday as the world’s attention remains focused on developments in Israel following the surprise attack by Hamas over the weekend.
Stocks climbed higher after Federal Reserve Bank of Atlanta President Raphael Bostic reiterated his stance that policymakers do not need to raise interest rates any further, saying the current policy is restrictive enough to bring inflation back to the Fed’s 2% goal.
WTI and Brent crude futures each lost almost 1% to trade below $86 and above $87, respectively. The DXY and 10-year Treasury note also continued to pull back from their recent highs, which helped provide some relief for risk assets.
At the closing bell, the S&P, Dow, and Nasdaq were all in the green, up 0.52%, 0.40%, and 0.58%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) traded in a narrow range between $27,295 and $27,745, suggesting that sooner or later, its price will experience a breakout, though which direction remains uncertain.
BTC/USD Chart by TradingView
The subdued price action was also prevalent in the futures market as “October Bitcoin futures prices [were] near steady in early U.S. trading Tuesday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“Price action has seen a pause recently, which is not bearish,” Wyckoff said. “The bulls still have the overall near-term technical advantage and are keeping alive a price uptrend in place on the daily chart.”
According to crypto analyst Miles Deutscher, Bitcoin’s flat price action mirrors the price action that occurred from Q2-Q4 in pre-halving years during the previous two bull market cycles.
#Bitcoin‘s recent price action is still mirroring the last 2 cycles.
This is typical sideways price action that occurs from Q2-Q4 in pre-halving years.
November 21st has historically been the key pivot point for a bullish shift. Will be interesting to see how $BTC responds. pic.twitter.com/zP9vlG31Qc
— Miles Deutscher (@milesdeutscher) October 10, 2023
But that didn’t stop market analyst Michaël van de Poppe from calling BTC the “weakest link” in the markets currently as both the Nasdaq and gold have shown strength while the top crypto has been stagnant.
#Bitcoin still acting as the weakest asset.
Nasdaq is rallying up. Gold is strong, Dollar coming down alongside Yields.
Preferably a sweep towards $27.1-27.3K would be a long entry here.
Losing area -> invalidation of uptrend and targeting $26.3K.
Still think Q4 is up. pic.twitter.com/8OuQ2ug7PG
— Michaël van de Poppe (@CryptoMichNL) October 10, 2023
In a note to his followers on Telegram, market analyst Crypto Chiefs said, “BTC is clearly struggling to move above $27.7k for now, and we can expect resistance from there up to the weekly open at $27.9k.”
BTC/USDT 4-hour chart. Source: Twitter
Mixed bag for the altcoin market
Altcoins traded mixed, with a majority of tokens recording slight losses on the day.
Daily cryptocurrency market performance. Source: Coin360
Stratis (STRAX) led the gainers with an increase of 16.4%, followed by gains of 5.8% for Tezos (XTZ) and Centrifuge (CFG). Storj (STORJ) fell by 11.7% to lead the losers, while dYdX declined by 7.7%, and tomiNet (TOMI) lost 4.9%.
The overall cryptocurrency market cap now stands at $1.06 trillion, and Bitcoin’s dominance rate is 50.2%.
