Bitcoin price due sub-$20K dip, traders warn amid claim miners ‘capitulating’
Bitcoin (BTC) climbed back to $20,500 at the Oct. 28 Wall Street open as United States equities sought a stronger finish to the week.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD capitalizing on renewed optimism as markets began trading.
The atmosphere was volatile after tech stocks suffered a major out-of-hours rout, with Bitcoin managing to avoid sustaining knock-on losses to the same extent.
At the time of writing, the S&P 500 and Nasdaq Composite Index were both up around 1.3%.
“In this current range bound phase after a prolonged downtrend,” popular trader CryptoYoddha summarized to Twitter followers.
Economist, trader and entrepreneur Alex Krueger, meanwhile, laid out a likely scenario for the days ahead. Crypto, he argued, could retest recent lows before rebounding into important news from the Federal Reserve next week.
“Thinking crypto lower tomorrow together with stocks, some late Friday hedging, quiet weekend, ETH mid to low 1400s, BTC mid 19000s get bought, then ride higher with the FOMC next week,” part of a tweet read.
Markets have quietened considerably since Bitcoin hit six-week highs, with Cointelegraph reporting on the extent of short liquidations executed as a result.
Looking at what could puncture the bullish mood outside of the macro, crypto research firm Reflexivity Research placed a special focus on miners.
Related: 3 striking similarities with past Bitcoin price bottoms — But there’s a catch
After major mining firm Core Scientific warned of liquidity problems, concerns over mining profitability in the face of an exploding hash rate continued to surface.
As Cointelegraph noted, theories over why the hash rate was diverging so much from the spot price even included Russia seeking to
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