A sell-off, which took Bitcoin below the key support level of $8700, dragged down other major currencies last week.
As of Saturday evening, Bitcoin had lost 3.14% of its value over the last seven days.
That’s on top of 5.75% it lost in the previous seven days.
XRP had lost 5.50% of its value over the same period, on top of the 5.77% it lost in the previous seven-day period.
Meanwhile, ETH, LTC and XLM gave back some of the gains they made in the previous weeks.
The sell-off in major cryptocurrencies extended to the broader market, with 46 out of the top 100 cryptocurrencies advancing and 54 declining.
Still, that was an improvement from the previous week, when 39 out of the top 100 cryptocurrencies advanced and 61 declined.
And that may be a sign that the sell-off is slowing down rather than accelerating.
“Currently Bitcoin appears to be struggling to stay above its support, however it is showing some bullish divergences so I’d expect a rally in the short term,” Nick Pelecanos, Advisor to NEM Ventures, said on Friday morning.
What does it mean for traders? “In terms of a trading plan, nothing has changed since last week,” he says.“Those taking short positions are expecting the break of support and a roughly 20% fall, while long positions are awaiting the break of Ichimoku resistance.”
Why? Because, “BTC doesn’t remain sideways for very long, so provided the supply doesn’t break on Friday evening or over the weekend I’m expecting an increase in volatility heading into next week.”
Wayne Chen, CEO of Interlapse Technologies, agrees. “Bitcoin will continue to have its swings as we move towards the end of 2019,” he says. “The entire market has been showing more activity, but I think the price will continue dancing up and down.”
Pelecanos sees the prospect for strong moves in next week, as he keeps an eye on the Alt market. “The sideways action of BTC has made room for some strong alt moves this week,” he says. “I’ll be continuing to watch the Alt market closely for trading opportunities next week or until BTC makes a greater move.”
He’s also following Ethereum closely. “I’m expecting Ethereum to begin outpacing BTC coming into January 2020 as investors look to secure their minimum 32 Eth for staking. However, I don’t expect the proper ETH2.0 with sharding to be released until sometime in 2021 so I am viewing this as a possible ‘buy the rumor sell the fact’ play.”
Chen has a positive roundup for Bitcoin for 2019. “Bitcoin has performed very well in 2019,” he says. “Even though price didn’t hit all-time highs, 2019 generated the highest volume, which is showing growth in Bitcoin adoption. There were many positive developments in 2019 that provided more avenues for new investors into Bitcoin.”
And he is positive for 2020, with an eye on halvening, next May. “We can expect some big price fluctuations in early 2020 until the Bitcoin halvening event in May,” he says. “After the halvening, Bitcoin should be bullish and have significant price climbs when compared to historic halvening events. It will be a much more interesting year!”