Originally published on: October 07, 2024
As Bitcoin makes a leap into a new week with intentions to set fresh October highs, concerns surrounding market sustainability linger. In a recent surge, Bitcoin soared to highs of $63,975 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
Despite the seemingly positive performance, traders remain skeptical due to the influence of leverage on the market. Many believe that the current price rally is artificial and could vanish in an instant, dubbing it as a “leverage-driven pump.”
As analysts assess market structure, potential scenarios unfold. Popular trader CrypNuevo identified $63,800 as a potential reversal point, anticipating external catalysts like unfavorable economic data or geopolitical tensions.
Meanwhile, Keith Alan, co-founder of trading resource Material Indicators, views reclaiming the 21-week simple moving average at $62,800 as a positive signal. This achievement positions Bitcoin to target the 200-Day MA and the 2021 Mid-Cycle Top.
The upcoming week brings a slew of US macroeconomic data releases, including the Consumer Price Index (CPI), Producer Price Index (PPI), and jobless claims. Market analysts closely monitor these data points as the Federal Reserve’s upcoming interest rate decision draws near.
Recent speculation from trading resource The Kobeissi Letter indicates a potential 0.25% rate cut by the Fed on November 7, contrasting earlier predictions of a larger adjustment. Financial conditions in the US have loosened significantly, prompting suggestions that the Fed may be hastening its policy unwind.
Amidst these developments, Bitcoin holders exhibit mixed behaviors. Long-term holders have reduced their positions by $6 billion, while short-term holders have seized the opportunity to increase their exposure. A surge in active BTC whale wallets hints at growing market interest.
With leverage playing a significant role in market dynamics, investors are urged to tread cautiously. As Bitcoin eyes the $64,000 mark, analysts anticipate a potential market transformation for a positive monthly close, signaling a potential “Uptober.”
It’s essential to note that this article does not offer investment advice. Readers are encouraged to conduct thorough research and exercise caution before making trading decisions.
