Over the weekend, the price of Bitcoin rose 4%, approaching the $64,000 level on Monday. While this movement created a positive atmosphere in the cryptocurrency market, Bitcoin has seen a 1.4% decline in recent hours, suggesting a potential loss of gains.
The four-hour chart for Bitcoin indicates a retest of the daily resistance zone, which ranges from $63,987 to $65,044. A rejection at this level could lead to a 1.4% correction, bringing Bitcoin closer to support levels of $61,837 and $60,346.
The RSI is hovering around the 60 level and has not yet reached the overbought zone. This situation suggests that traders may expect a short-term correction, allowing Bitcoin to return to said resistance zone. A correction that may occur on October 9 or 10 may cause the price of Bitcoin to fall to the $60,000 support level.
Analyst Jay recently indicated on Platform X that Bitcoin’s price at $63,051 could reach $77,700 by the end of October, reflecting a 30% increase. Based on historical data, Jay confirmed that Bitcoin usually follows a strong uptrend after forming a low at the beginning of October.
Jay’s opinion corresponds to the average return in October of 21%. However, it is also important that investors carefully assess these expectations.
Moreover, uncertain geopolitical conditions, such as the Iran-Israel conflict, could significantly affect the price of Bitcoin and disrupt historical patterns..
If the price of Bitcoin falls below $60K, it is expected to fall further to support the levels of $57,970 and $57,201, representing a potential decline of 9.6% from current levels.
Investors can carefully monitor these volatility in the bitcoin market and reevaluate their strategies for both short-term corrections and potential increases.
Keep an eye out for the market as Bitcoin regains $63K
The market is teeming with anticipation as Bitcoin [BTC] regains $63K. Bitcoin was trading at $63,413 at the time of writing, suggesting the potential for a strong breakout in the fourth quarter.
This recovery comes after a brief bout of volatility caused by external factors. Now, stakeholders seem to have regained control of the market, putting bitcoin in a good position for the next big move.
However, fears loom as Bitcoin remains vulnerable to pressure from the derivatives market, which could expose it to sudden volatility, frustrating any attempts to reverse the uptrend.
Fortunately for Bitcoin, speculative dominance remains low at 2.5%, keeping its long-term outlook relatively stable.
However, there is a growing trend of traders looking to short sell bitcoin over shorter periods of time.
If this trend continues to build, it could cause Bitcoin to be overly influenced by derivative instruments, undermining hopes of pushing the price to above $100,000 by next year.
Interestingly, when Bitcoin hit an all-time high of $73,000 in March, open interest (OI) rose to over $30 billion for the first time, reaching $36.44 billion.
Just three months later, on July 28, open interest soared to an all-time high of $37.22 billion, warming the market and bringing Bitcoin back to $54,000 in just a week.
The accompanying long red candles on the daily chart clearly depict the magnitude of losses incurred during that cycle. Currently, open interest is increasing at the same pace, stabilizing at $34.33 billion at the time of publication.
This trend can signal a reversal of the cycle by pushing investors into a state of extreme greed and signaling the risk of market warming.
Bitcoin Rose Supported by ETF Flows Despite Market Volatility
Bitcoin (BTC) gained 1.21% in the last 24 hours, trading at $62,861.64. In the wake of the strong US jobs report, demand for spot ETFs for US Bitcoin increased, resulting in a net inflow of $25.6 million. This shift in the balance of supply and demand has enhanced the stability of the price of Bitcoin. It is worth noting that the 24-hour trading volume of Bitcoin increased by 97.84%, demonstrating the growing market interest.
Although the previous week started badly, options flows point to a bullish outlook for the fourth quarter, as investors continue to buy $75,000 and $95,000 spread that are set to expire in December. QCP remains optimistic about October’s performance, taking into account the possibility of future interest rate cuts and Bitcoin’s strong correlation with the stock market.
Market attention on Thursday will focus on the US Consumer Price Index (CPI) data. In the wake of recent strong US wage and employment statistics, analysts will be keeping a close eye on any signs of rising inflation. The company noted that the Fed’s forecast of a rate cut shifted from 50 basis points to 25 basis points in just one week, and this week’s data may further affect these expectations.
Bitcoin rises despite exchange-traded fund flows, while cryptocurrency market gains momentum
As of this writing, Bitcoin is trading at $62,929, reflecting an increase of more than 0.94% in the past twenty-four hours. The intraday lows and highs of the cryptocurrency were observed at $62,099 and $63,937 respectively. This rise is particularly noteworthy considering the $301.54 million in weekly outflows from exchange-traded funds (ETFs) recorded last week.