Analyst Dismisses Market Panic: Bitcoin’s Breakout and Retest Signal All Is Well
Crypto analyst Sykodelic posted on X early Monday that Bitcoin’s daily chart shows a breakout and retest of its previous high and its 50 EMA, a moving-average trend line, and told jittery traders to relax.
The post lands as “Black Monday” crash calls circulate online while US stock futures point higher.
Bitcoin Chart Breakout Meets Black Monday Fears
In the October 19 post, Sykodelic wrote that “the timeline has been in the depths of despair” even as Bitcoin’s daily chart appeared to show “a breakout and retest of the previous high, and 50 EMA.”
The trader called the bearish mood “emotional and irrational” and added:
“There are definitely times to be cautious of price action. But at this time, with this move, this is not one of them.”
Ash Crypto struck a similar note around the same time:
“If people are calling for a Black Monday, it probably won’t happen.”
Markets rarely move the way everyone expects, the account added, pointing out that fear is a poor basis for decisions. Hours into the supposed crash, the Kobeissi Letter pointed to Nasdaq 100 futures up nearly 1% and an S&P 500 set to add $350 billion in market cap at the open. “This aged well,” it wrote.
Meanwhile, at the time of writing, Bitcoin was recovering toward $83,000 after also gaining 1% in 24 hours, although it was down by the same percentage across seven days, with its share of the total crypto market value at over 58% in a market worth about $2.83 trillion, per CoinGecko.
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Ethereum, around $2,400, is down 4.6% since last Monday, and other large altcoins have fared worse, including XRP, which, at $1.31, has lost almost 7% in seven days, while Solana, near $106, has dropped by more than 5% in the last week. Monero stands out with an 11% gain in the same period.
Recent Losses Explain the Nervous Mood
Sykodelic’s optimism comes after a difficult week for crypto. As CryptoPotato reported yesterday, Bitcoin briefly fell from around $81,600 to $80,750 during a weekend flash crash before recovering, while ETH and AI-linked stock perpetuals also dropped and rebounded.
Inflation data had already weighed on prices, with September consumer inflation coming in slightly above expectations, and producer prices posted their largest monthly increase in more than four years. Bitcoin briefly slipped below $80,000, its first dip under that level in about a month, before recovering.
The Kobeissi Letter, in an October 15 analysis, described a “stealth” bear market beneath the S&P 500’s headline performance, claiming 84% of its constituents were at least 10% below their highs and that just 10 stocks accounted for 70% of the index’s gain since March 30.
About the author
Wayne is a dynamic part-time trader with an impressive eye for detail. His passion for understanding financial systems has led to an intriguing interest in blockchain technology, and he enjoys exploring and writing about cryptocurrencies. Possessing a keen intellect and diligent work ethic, he stays up-to-date on the latest industry trends, regularly sharing his insights in articles and professional presentations.