Bitcoin Hits October Low Amid Inflation Concerns: An Outlook on the Cryptocurrency Market
Summary:
Bitcoin (BTC) experiences a fresh October low following the Wall Street open on Oct. 11, interpreted by an analyst as the final stage of the cryptocurrency bear market. The BTC price decline, which is pushing towards $26,600, has been linked to U.S inflation data, particularly the higher-than-expected September Producer Price Index (PPI). Experts note $26,800 as a critical level in the current range, and some predict potential market reversals and promising times ahead for Bitcoin.
Bitcoin (BTC) experienced further decline, reaching its lowest point in October after Wall Street commenced operations on October 11. An expert indicated this descent as the "last phase" of the cryptocurrency bear market. The BTC/USD 12-hour chart showed an additional weakness in BTC prices, resulting in the loss of the $27,000 support for the bulls. The top-rated cryptocurrency showed signs of dipping to $26,600 as the bearish trend progressed.
This decline coincided with the release of the U.S. inflation data, specifically the Producer Price Index (PPI), which exceeded expectations with a 2.2% growth against a year-on-year projection of 1.6%. The higher-than-anticipated PPI result led to increased worries regarding persistent inflation in the U.S., boosting the dollar's strength and deflating risk assets.
Michaël van de Poppe, the founder and CEO of MN Trading, opined that the PPI figures have ignited a surge in the dollar, while Bitcoin seems to be moving southward. He added that he is monitoring the lower boundaries for potential trading entries.
Bitcoin sunk to its most negligible levels since September 29, having already down by $1,000 once the "death cross" was complete on the daily chart at the week's start. This fall negated the little gains it made in October, which used to be known as a typical "Uptober."
Van de Poppe prognosticated that this could be the end phase of the bear market for cryptocurrencies, expecting an upswing in November or a turnaround at the year-end, setting stage for a pre-halving and ETF rally. According to him, promising times await Bitcoin.
Skew, a notable trader, identified $26,800 as a pivotal point in the ongoing price range, while fellow trader Daan Crypto Trades pointed out the highest levels of open interest in several months. He observed that these high levels had historically ushered in volatility, as seen in the month's first week.
Before the PPI was released, the Material Indicators resource indicated a paucity of bid support on the BTC/USD order book on Binance, the leading global exchange. The bids were primarily assembled around $26,650.
Keith Alan, Material Indicators co-founder, mentioned that the year-on-year Core PPI report displayed an upward trend since July. He predicted that the interest rates would likely continue at the current levels for a longer duration without respite for risk assets, based on his interpretation.
Please note that this information should not be taken as investment advice or recommendations. Investments and trades bear risk, and individual research is advisable before making financial decisions.
Published At
10/11/2023 4:28:05 PM
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