In what some have begun to affectionately dub “Uptober,” the cryptocurrency market turned heads at the top of the month by surging past the $1.11 trillion evaluation threshold on the back of Bitcoin (BTC) and Ethereum’s unexpected 4% growth within just a quarter of an hour. An exciting occurrence for blockchain aficionados, no doubt, but one that swiftly led to the liquidation of more than $70 million in short positions.
While many crypto enthusiasts pin their hopes on this being a harbinger of a bullish trend throughout October, traders on the short side of the market no doubt greeted this unexpected surge with disappointment. Over the course of those volatile 15 minutes, BTC’s value rose from roughly $27,100 to near $28,000, and Ethereum reached a peak of $1,755 before settling at $1,727.
Adding to the enthusiasm surrounding cryptocurrencies was the news of the SEC’s recent approval of Valkyrie Funds’ proposition to include Ethereum futures in their Bitcoin futures ETF. Coupled with the slight recovery of US stocks and the 10-year Treasury yield declining from a 16-year high, the sentiment toward cryptocurrencies seems cautiously optimistic.
However, the SEC’s delay in deciding on digital asset ETFs contributed to a significant global anticipation in the crypto market. In addition, the vision of Bitcoin being recognized in a world financial hub like Shanghai provides some tangible evidence of this positive sentiment.
With that in mind, Bitcoin’s price prediction is of particular interest to those watching the digital currency space. From a technical standpoint, the key price levels include a pivot point at $27,334, resistance at $28,260, with further resistance at $28,500 and $29,300, respectively. Bitcoin’s RSI high of 80, above the traditional overbought threshold of 70, incites caution for early traders.
The ‘Three White Soldiers’ chart pattern appears to indicate a robust bullish sentiment, reinforcing the digital asset’s upward momentum, but lingering uncertainties around potential pullbacks and the perennial volatility of cryptocurrencies as a whole means potential investors should exercise profound caution.
In conclusion, while the overall trajectory for Bitcoin and the crypto space in general appears bullish, prudent investors should exercise caution. The short-term expectation for Bitcoin is to test the $28,800 resistance and possibly even aim for $29,300 in the subsequent days, depending on market conditions. This is an invigorating time in the crypto world, with great potential rewards for the strategically-minded investor, but also one ringing aboard cautionary tales of the unexpected effects of rapid surges.
Source: Cryptonews
