Bitcoin hints at $1T market cap retest after price hitting 4-month highs

Bitcoin (BTC) took a visit beneath $54,000 throughout Oct. 7 as merchants waited to see how far a retracement of Wednesday’s $5,000 positive aspects might go.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC flirts with $1-trillion asset assist

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD trying decidedly much less assured Thursday, down 3% whereas taking goal at $53,000 — and its $1-trillion market capitalization — earlier than recovering.

The pair had hit native highs of $55,800 — its best since earlier than the May miner rout — however it didn’t take lengthy for over-optimistic markets to indicate signs of fatigue.

With volatility nonetheless in proof, analysts had been taking the chance to zoom out from spot price motion as soon as extra.

“Historically, BTC tends to enjoy an average positive monthly return of +32% in the month of October,” Rekt Capital noted.

“This October, $BTC has already rallied +29% and it’s only the first week of the month.”

While spectacular, such a efficiency might but sign the beginning of consolidation, positioning Bitcoin to type greater assist earlier than powering by to a projected $63,000 by month-end. 

Such a month-to-month shut, dubbed the “worst-case scenario,” would nonetheless far outpace common historic positive aspects for October. Currently, one of the best yr on report is 2017, throughout which BTC/USD added 47%.

Bitcoin historic returns by month. Source: Bybt

Dogecoin beats the pack amongst altcoins

Altcoins continued to pull their toes within the wake of Bitcoin’s positive aspects on the day — one thing which was not misplaced even on mainstream media.

Related: Bitcoin bears risk getting trapped if BTC price remains above $50K — Here’s why

Weekly positive aspects on BTC/USD had been matched solely by Dogecoin (DOGE), echoing acquainted motion from Q1 this yr. Both had been up 25% over seven days at the time of writing.

Largest altcoin Ether (ETH) was quieter, nevertheless, posting 20% weekly returns and circling $3,575.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView