π Bitcoin (BTC) starts the new week at comfortable highs, trading at around $34,222. Traders are speculating about the upcoming price action for BTC. Despite macroeconomic uncertainties, Bitcoin has established itself above $30,000 and continues to strengthen its position. Last week, Bitcoin recorded a 15% gain but managed to avoid a significant retracement. As we head into October monthly close, several potential catalysts could impact BTC/USD, including increasing geopolitical instability in the Middle East and the United States Federal Reserve’s decision on interest rate adjustments on November 1. Bitcoin’s network fundamentals remain strong, with all-time highs or near all-time highs across various metrics. While some investors have faith in further upside, others are concerned about the possibility of a $20,000 crash. In this weekly rundown, we will explore these factors and more that could influence BTC’s price in the coming days.
β³ Countdown to the end of “Uptober”
After achieving its highest weekly close in 18 months, Bitcoin is currently consolidating near $34,000 at the beginning of this week. The weekend saw a surge in BTC price to $34,700, which resulted in liquidations of short positions. Compared to the previous week, the weekly close of October was relatively calm, and traders are now closely watching whether “Uptober” will continue its bullish trend. Analysts are optimistic about Bitcoin’s position, as the Relative Strength Index (RSI) is showing favorable behavior. Another analyst believes BTC could break out towards $40,000, a popular target among bullish traders.
βοΈ $20,000 BTC price dive “worst case scenario”
Despite Bitcoin holding higher levels, there are still concerns that the price could drop to $20,000. This level remains on the radar for some market participants, as it represents both a CME futures gap and the psychologically significant all-time high from 2017. However, social media sentiment suggests that many traders find a $20,000 comeback near impossible. In fact, some analysts believe that Bitcoin could reach $40,000 and surpass it.
π₯ FOMC rate move due as crypto decouples from stocks
Bitcoin now faces its second major conflict in two years, with increasing trouble in the Middle East and potential impacts on global markets. This week, market participants are also keeping an eye on the U.S. Federal Reserve’s interest rate decision. Despite persistent inflation beating market expectations, Bitcoin has largely dismissed the Fed rate decisions in recent months. The S&P 500 has recently lost 4%, indicating a potential divergence between Bitcoin and traditional stocks. Research firm Santiment suggests that this decoupling is a positive sign for the crypto bull market.
β‘οΈ Bitcoin network fundamentals remain strong
Bitcoin’s network fundamentals continue to show impressive performance. The latest automated readjustment of difficulty on October 30 resulted in a 2.35% increase, reaching an all-time high. This indicates intense competition among miners. Hash rate, another crucial metric, remains high at around 493 exahashes per second (EH/s). Several analysts predict that both difficulty and hash rate will continue to surge, with the possibility of reaching 500 EH/s before the new year.
π Greed matches BTC price all-time highs
The Crypto Fear & Greed Index, a classic sentiment gauge in the crypto market, has returned to November 2021 levels, reaching a score of 72/100, firmly in the “greed” category. This indicates that market sentiment is becoming increasingly optimistic. However, extreme levels of greed often precede significant trend changes in price action.
π Zodia expands crypto custody services to Hong Kong
Zodia Custody, the institutional cryptocurrency custody platform co-owned by Standard Chartered, SBI Holdings, and Northern Trust, is launching its services in Hong Kong. The expansion is in response to growing demand for crypto from institutional investors in the region. Zodia’s launch in Hong Kong aligns with the government’s view of digital assets as the future and its ambition to become a hub for cryptocurrencies. Zodia has been aggressively expanding its operations in Asia, having recently opened services in Japan, Singapore, and Australia.
π‘ Takeaway
Bitcoin starts the week at comfortable highs, but the upcoming weeks may bring increased volatility due to various factors such as geopolitical instability and the U.S. Federal Reserve’s interest rate decision. While some traders remain concerned about a potential $20,000 crash, network fundamentals remain strong, and the Crypto Fear & Greed Index shows increasing greed among market participants. Additionally, Zodia Custody expands its services to Hong Kong, further catering to the growing demand from institutional investors in the region. Overall, Bitcoin’s outlook remains positive, but traders should remain cautious and conduct their own research before making any investment decisions.