Bitcoin hovers near $6,500, but will take months to repair technical damage

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BTC-USD courtesy of TradingView
BTC-USD courtesy of TradingView

Major digital currency prices were mostly unchanged Monday to begin the week.

Bitcoin, the largest digital currency, which accounts for around 52% of the total share of digital currencies, remained stable, trading on either side of $6,500. In Monday trading, bitcoin BTCUSD, +0.10% fetched $6,567.93, up 0.1% since Sunday’s level at 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.

Bitcoin bulls

With the fourth-quarter underway, bitcoin bulls turned the calendar with renewed optimism based on seasonality patterns, but one technical expert says there is no quick-fix to pull cryptocurrencies out of their current bear markets.

will take months to repair the technical damage
will take months to repair the technical damage

“Given the technical damage that has developed in 2018, we expect most cryptocurrencies will likely require months of repair before a new bullish trend can develop,” wrote Rob Sluymer, technical analyst at Fundstrat Global Advisors, in a recent note to clients. “This is consistent with post-bear-market behavior that has developed in other asset classes following bear markets.”

Sluymer added that the first step in the right direction for bitcoin is the September high above $7,400, which is still 13% away from current levels.

BTC-USD courtesy of TradingView
BTC-USD courtesy of TradingView

In the third quarter of 2018, bitcoin and XRP were the only major digital currencies to log wins and at the other end of the spectrum, Ether lost nearly 50% and Bitcoin Cash slumped 30%.

Read: Bitcoin mining giant Bitmain says it booked $700 million first-half profit as it files for IPO

Altcoins

After a frantic week, altcoins slow out of the blocks
Altcoins, a catchall term for digital coins other than bitcoin, have begun the week on a quiet note, bucking recent trends that saw some coins trade in ranges of more than 30% over the past seven days. Bitcoin Cash BCHUSD, +2.86% is the best performing altcoin, trading at $528.50, up 1%, Ether ETHUSD, -0.02% was up 0.5% at $229.42, XRP XRPUSD, -4.36% was up 0.8% at 57 cents and Litecoin LTCUSD, +0.80% is trading unchanged at $60.27.

Bitcoin futures traded lower Monday. The Cboe October contract XBTV8, +0.08% finished the session down 1.5% at $6,545 and the CME Group October contract, BTCV8, +0.23% closed down 1.9% at $6,540.

Source: Market Watch