Bitcoin Begins New Quarter Surpassing $28,000 Amidst High Bullish Sentiment
Summary:
Bitcoin starts the new quarter with a bullish swing, surpassing $28,000 and marking its most robust weekly close since mid-August. Despite varied price action last month, October's historical trend of significant BTC price appreciation has stirred bullish sentiment for current market participants. While Bitcoin's spot price shows a bullish trend, the mining difficulty is set for a reduction. Analysts explore potential causes that might affect Bitcoin's price, such as US liquidity trends and upcoming Federal Reserve announcements. However, caution is advised due to potential market volatility.
Starting the new week, month, and quarter on a high note, Bitcoin (BTC) veers past $28,000 reassuring bullish sentiments in the cryptosphere. Coming off its best weekly closure since mid-August, the largest digital currency has rekindled enthusiasm among traders regarding a promising trajectory in the coming period. Despite the turbulent price swings with Bitcoin during last month, the somewhat volatile monthly finish tilted towards bulls. Forecasts for an upbeat October are high, given its history marked with significant BTC price appreciation. Any substantial macro triggers may not be immediately apparent as the US macro data may be quiet initially in October due to the recent aversion of a government shutdown.
Despite Bitcoin's bullish stance on the spot price, the mining difficulty does not reflect the same, with an anticipated decrease by the automated readjustment set for October 2. Bitcoin's promising performance at the closing of the week, nearly hitting $28,000, came across as a pleasant surprise, replacing its previous weaker position. Nevertheless, skeptics in the market suggest potential price reversal risk. They emphasize that Bitcoin would need an increased volume to clear the $28K - $29K range, with spot traders holding significant influence over this decision.
Data affirms October as a powerful month for Bitcoin, given it has not ended lower than its starting point since 2018. Some expect the token to imitate its 2021 behavior where Q4 saw an all-time high. Analysts suggest a potential trend shift for Bitcoin, predicting probable highs for the coming week. They note that this month could potentially see Bitcoin surpass $30,000, a high not touched since June.
Bitcoin network fundamentals, however, do not mirror the promising outlook on spot markets. Bitcoin's network difficulty is projected to experience a 0.7% reduction at its next automated readjustment, breaking the bullish trend observed in recent months.
The optimistic outlook for Bitcoin in the first week of October contrasts with the calmer US macro data, including the last-minute diversion of a government shutdown. As we move into the month, observers will keep a close eye on the Federal Reserve's officials' announcements, especially with the forthcoming Federal Open Market Committee (FOMC) meeting scheduled for November 1st.
Analysts also study US liquidity trends and their likely impact on Bitcoin's price behavior. Critics argue for a correlation between global liquidity and risk asset performance, highlighting fluctuations since the beginning of the COVID-19 crisis. Many view Bitcoin's trajectory to be either stagnant or on an upward curve. Still, risks remain for potential volatility before a possible sharp upturn. It is essential for readers to carry out their research, given each investment or trading move comes with its risks.
Published At
10/2/2023 8:13:33 AM
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