Only six days ago, bitcoin was sitting at a low of $7,300, and looking very heavy.
Then on Friday, China’s president Xi made a speech that catalyzed a sudden spike — pushing bitcoin up 42% to briefly touch $10,000.
His words sent shockwaves through the cryptocurrency ecosystem, impacting all major large-cap coins, and sending small Chinese altcoins like NEO and Tron on a moon mission.
Bitcoin Settles After Biggest Move for Eight Years
Bitcoin is now trading at $9,115, and has printed a green monthly candle for October. This follows three red candles showing losses for the months of July, August and September.
The sudden 40% spike that followed President Xi’s speech is a rare event — moves of such magnitude haven’t been seen since the cryptocurrency was trading at under $10 in 2011.
Analysts are divided over whether Chinese buyers or Western traders are responsible for pushing up the price. As Adamant Capital’s Tuur Demeester suggests, “It could be just a very large fund that decided to allocate just a little bit, and that was enough to just push the price high enough so that all these stops then cascaded.”
Elsewhere, growing institutional interest reinforces the bullish picture. The CEO of Intercontinental Exchange (ICE) said on Thursday that Bakkt is in talks with major banks, brokers, and other financial institutions “to explore the possibility of adopting bitcoin derivatives.”
On the charts, bitcoin is digesting its recent gains and trading in a range between $9,000 and $9.700.
To prevent the price from falling again, bitcoin needs to hold above support at the bottom of this range at around $8,940. A break through this level could trigger more downside towards the next support at around $8,000.
But, traders are now likely to be favouring the bullish side — Bitcoin’s upcoming halving is only six months away and historically has led to bullish price action leading up to the event.
Ether Capped Below $200
Ethereum is now trading at $182.
The fundamentals of the blockchain look better than ever. Ethereum remains the most popular launchpad for decentralized apps, and is now benefiting from a boom in Decentralized Finance (DeFi). Scalability issues on the blockchain are set to be resolved with the arrival of Ethereum 2.0 which is expected to launch this quarter.
On the chart, the price of Ether is capped below $200. A move above here is likely to push up against further resistance at around $224. To the downside, long-term support can be found around $168.
Litecoin Summit Fails to Generate Gains
Litecoin is currently trading at $58. The 2019 Litecoin Summit has now concluded, but the price doesn’t seem to have been impacted — despite positive news on the integration of privacy protocol MimbleWimble.
On the charts, litecoin is capped below resistance at $60, and can rely on short-term support at around $57.
Chinese Alts Push Ahead
NEO is currently trading at $10.60. The altcoin — along with other Chinese altcoins like Ontology ($ONT) and Matrix AI Network ($MAN) — has left other cryptocurrencies in the dust over the past seven days. Both NEO and ONT have pushed up over 50 percent, suggesting that buyers might consider the news from China to have real substance.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.