(Kitco News) – The week came to a quiet close in the cryptocurrency market as there was little change in price for the majority of tokens following a mid-week rally that saw Bitcoin (BTC) crest above $21,000 for the first time in six weeks.
Traditional markets closed out Friday on a strong note despite a 9% dip in the price of Amazon stock, with the S&P, Dow and Nasdaq all closing in the green, up 2.39%, 2.49% and 2.87%, respectively.
Data from TradingView shows that an attempt by Bitcoin bears to break below support at $20,000 was well-defended by bulls, who managed to reverse the momentum and lift the top crypto back above support at $20,600.
BTC/USD 4-hour chart. Source: TradingView
The early hours dip from Bitcoin was referred to as “a corrective pullback after hitting a six-week high on Wednesday” by Kitco senior technical analyst Jim Wyckoff, who noted that “Price action this week has seen a bullish upside ‘breakout’ from the choppy and sideways trading range of the past few weeks.”
As a result of this week’s action in the market, “A fledgling price uptrend is in place on the daily bar chart,” Wyckoff said, adding, “Bulls have the overall near-term technical advantage to suggest still more upside price action in the near term.”
While many on crypto Twitter are still convinced that the current rally is but a bull trap destined to result in a new yearly low for Bitcoin, pseudonymous crypto trader Stockmonkey Lizards posted the following tweet highlighting a promising fractal pattern that suggests BTC price could soon start a new bullish cycle.
We are once more at a point where we have been before in 2015 and 2019 with $BTC price retracing to the 78.6 Fib. Retracement and the log bottom??
We also see RSI MA Crossing (50/100) incoming. This will mark the beginning of the bullish phase like always before ?? pic.twitter.com/ooqPCh3k81
— Stockmoney Lizards ?? (@StockmoneyL) October 28, 2022
Altcoins continue to consolidate
While the bullish move in Bitcoin this week has given a renewed sense of hope to crypto traders, the trend of prices staying flat while the traditional markets see significant rallies continues to give some reason to worry.
Despite each of the major stock market indices being up more than 2% on Friday, the action in the altcoin market was subdued, with the number of tokens in the red similar to the number in the green and most prices seeing less than a 2% change from yesterday.
Daily cryptocurrency market performance. Source: Coin360
Noteworthy exceptions to this trend include an 8.71% gain for CEEK VR (CEEK), a 7.19% increase for Theta Fuel (TFUEL), and a 4.92% gain for Optimism (OP).
The overall cryptocurrency market cap now stands at $1.002 trillion, and Bitcoin’s dominance rate is 39.4%.
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