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Positive news about the collapse of China Evergrande and the Fed’s intention to continue with its existing monetary policy has fueled a strong rally in bitcoin and altcoin prices.
The week-long daily lower high pattern suggests bulls will not be able to flip $43,000 as support, which could drag down many altcoins that just bounced back.
Historical data shows that October has been a good month for Bitcoin bulls, and Bitcoin’s break above $47,600 on October 1 could be a harbinger of what’s to come for Bitcoin and altcoins.
Bitcoin and some altcoins are facing a sell-off at higher levels, suggesting that short-term traders may be taking profits after the recent rally.
Analysts say that Bitcoin has started to move towards new all-time highs, and the sideways movement of altcoins shows that traders are moving funds to BTC.
Altcoins are selling off ahead of the launch of a bitcoin ETF this week, a possible sign that traders are concerned about the historic launch.