As October arrives and BTC is stuck around the $6,500 levels, there is no clear indicator of the direction of the asset, except for mining.
Bitcoin (BTC) is now watched by everyone aiming to fulfill the expectations of a renewed upward run starting in October. The asset is stuck in the middle, not giving grounds for clear predictions. BTC prices hover around the $6,500 range, with analysts seeing options for both a continued progress or a sinking back to $3,000 or even in the extreme, $1,000.
There is one bullish indicator – the hashrate of Bitcoin, which has expanded to 57 EH/s, repeating the record from the end of August. The levels of $6,500 and even as low as $6,000 are seen as viable for many mining farms. However, it is difficult to estimate which farms are going online, and whether the growth of mining would continue.
Bitmain, the chief seller of mining rigs, has seen lowered sales during the bear market, coinciding with the months-long slide in Bitcoin prices. The next few months will show if the market price and the mining economy show optimism, or an even deeper freeze in sentiment and market prices.
BTC traded at 6,581.21 as of 13:30 UTC on Monday, on relatively low volumes of $3.9 million in 24 hours. The price is supported by pairings with Tether (USDT), taking up more than 55% of volumes, based on data from Cryptocompare. These positions are seen as precarious for Bitcoin, and in no way indicative of a price rally.
$btc really wound up tight now – Volatility now ridiculously low. This last bounce from the support is the worse yet – unless some huge whale buys in now, #btc will crash through this 9 month+ long support… It will be very ugly- Unless your shorting! $btcusd #bitcoin pic.twitter.com/PSMFlr49gT
— CryptoG (@Cr1p70G) October 2, 2018
Some traders are extremely pessimistic, and see the relatively low-volatility positions around $6,500 as unsustainable.
Another bearish factor is the stagnation in search results for Bitcoin, showing continued weakness in mainstream interest. Google searches have repeated the spike in Bitcoin prices, with interest waning as the price fell.
At the same time, individual altcoins have created outsized enthusiasm. Weiss Ratings noted that XRP outperformed the markets, with 80% monthly growth:
#XRP led the pack this September, boasting a near 80 percent month-over-month price increase to cement it as the best monthly performer out of the world's 25 largest cryptocurrencies by market capitalization. #crypto #cryptocurrency #altcoins #btc #bitcoin #NotJustPump
— Weiss Ratings (@WeissRatings) October 1, 2018
In October a year ago, BTC prices hovered around $4,400, for a much slimmer net increase in prices in the past year. However, it is uncertain at this time whether the last quarter would bring a similar performance to last December, when BTC prices would easily grow by $1,000 in a day, for a few consecutive days.