Bitcoin Sparks Bullish Hopes Amid Market Volatility as Bulls Eye $32,000 Threshold
Summary:
As the final week of October begins, Bitcoin (BTC) sees a promising start, pushing crypto markets higher with a 3% price increase. BTC/USD edges close to its 2023 peak, raising the question of whether the bulls will triumph. Traders exercise caution in their predictions, and Bitcoin must navigate potential challenges, such as macroeconomic data releases and geopolitical incidents. On-chain analytics data shows a consistent decline in BTC balances on major exchanges, a trend unseen since 2018. While trader sentiment improves, entry of new market participants is unusually low. The Crypto Fear & Greed Index exhibits increased volatility, surging into "greed" territory. Notably, the $32,000 threshold is viewed as the ultimate battleground for bulls.
The final week of October sees Bitcoin (BTC) off to a promising start, with a 3% price increase lending a boost to the crypto market. As we head into another potential “Uptober”, BTC/USD is nudging close to its 2023 peak, triggering a power struggle between resistances. The question on everyone's mind is whether the bulls will emerge victorious.
Entering the week's first Wall Street open with a strong display by Asia, the crypto world at large anticipates a possible resurgence. Although there's substantial resistance to beat, traders are exercising caution — high-level BTC price forecasts aren't as abundant as one might expect, with specialists agreeing that surpassing $32,000 won't be swift or uncomplicated.
Bitcoin also faces potential challenges in the form of macroeconomic data releases, particularly as inflation persistently exceeds predictions. Incoming key figures ahead of the U.S Federal Reserve's interest rate verdict on November 1 only heighten the importance. Concurrently, geopolitical incidents bring an extra layer of turbulence to the markets.
As Bitcoin bulls tackle a significant trading range breakout to shift the trend, the week promises a wild ride for crypto and risk assets.
Caution grips traders as Bitcoin's rally cools off and BTC/USD falls back from its peak, placing it on a trajectory toward $30,000. Renowned trader Ali draws attention to the prospects of a substantial slump by analyzing the relative strength index (RSI) readings.
Sounding a note of caution, Ali mentions, "Unless BTC succeeds in sealing a daily candlestick closure above $31,560, a price rectification seems imminent". As of October 23, the RSI stood at 77, levels that induced significant corrections since March this year as per Ali's notes. Traditionally, scores over 70 are deemed "overbought."
Contrarily, others like Philip Swift, DecenTrader's co-founder, and Look into Bitcoin's creator, along with notable trader CredibleCrypto are hopeful about a Bitcoin breakout.
Bitcoin has shown a promising surge in the final week of “Uptober”, getting close to $31,000, according to Cointelegraph Markets Pro and TradingView data.
Markets will also closely watch the unaudited Personal Consumption Expenditures (PCE) Index data in the run-up to the Federal Open Market Committee (FOMC) on November 1, as it's the Fed's favored inflation gauge. The Q3 GDP report is expected as well. Despite previous hints of persistent inflation, chances of further rate increases remain slim.
Furthermore, with the earnings season in full swing and the Fed's decision on the horizon, volatility will be the name of the game for traders, predicts financial commentary resource, The Kobeissi Letter.
Despite the recent bullish trend, BTC balances on major exchanges have consistently declined, a trend not witnessed since 2018. Currently, combined BTC balances of the big trading platforms are about 2.024 million BTC, according to CryptoQuant data.
Crypto analysts have also noted recent market trends highlighting the absence of newcomers to the space this month. With market sentiment improving, there are some concerns about the presence of certain "artificial" trends in the BTC price movement, warns CryptoQuant.
The Crypto Fear & Greed Index, after weeks of relatively uneventful movement, finally exhibits some volatility. Over the weekend, the Index surged into "greed" territory, reaching its highest level since July 12, aligning with Bitcoin's push to break past the psychological $30,000 barrier.
However, opinions remain divided among traders with some voicing their apprehensions. The popular trader, Altcoin Sherpa, calls the $30,000 threshold a "fearsome zone" laying down the gauntlet at $32,000 as the ultimate battleground for bulls.
Please note that this article does not offer investment advice or recommendations. As every investment and trading action carry risk, readers should carry out their own research before making financial decisions.
Published At
10/23/2023 8:16:03 AM
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