There are silver linings in the cryptocurrency cloud, analyst says

There are silver linings in the cryptocurrency cloud, analyst says

October 26, 2018

Major digital coins traded largely unchanged Friday, continuing a run of subdued volatility that some traders undoubtedly find eerie.

In Friday trading a single bitcoin BTCUSD, +0.02% was trading at $6,452.68, up 0.3% since Thursday at 5 p.m. Eastern Time on the Kraken cryptocurrency exchange. For the week, bitcoin has traded between $6,403 and $6,498.

While advocates argue the falling volatility could be a precursor to a move higher, Rob Sluymer of Fundstrat Global Advisors isn’t ready postulate a bull market is around the corner. “While it is still premature to conclude a major upside trend reversal is broadly under way, each week we have highlighted an incremental ‘Silver Lining’ developing within the crypto universe,” he wrote.

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“We continue to view the decline in volatility, lower volumes and positive divergences between many Alts [altcoins] and larger caps, notably [ether and Bitcoin] as encouraging technical developments,” he said. Sluymer, who specializes in technical analysis, said a break of the September highs remained necessary to confirm a reversal may be under way.

Much like bitcoin, smaller digital currencies, or altcoins, are off to a slow start Friday. Ether,ETHUSD, +0.60%had gained 0.8% at $201.41, Bitcoin CashBCHUSD, -0.21%was unchanged at $437.00, LitecoinLTCUSD, +0.31%was up 0.4% at $51.97 and XRPXRPUSD, -0.52% was down 0.2% at 46 cents.

After finishing Thursday in the red, bitcoin futures are clawing back some losses in early Friday trading. The Cboe Global Markets November contractXBTX8, +0.08%was up 0.2% at $6,405, while the CME Group October contractBTCV8, -0.08%was trading 0.2% higher at $6,415.

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