Despite the optimistic start of October in the Bitcoin market, analysts warn against excessive enthusiasm. Is the cryptocurrency price stable, or is it just a short-term rise?
Bitcoin began October with a price approaching 28.5k. USD at the opening of Wall Street. This bullish start to the month seems to continue its previous successes.
Data from Cointelegraph Markets Pro and TradingView indicate that Bitcoin maintains a strong position in the early days of October. This dominant cryptocurrency recorded rapid gains at the end of the week, contrasting with earlier, more cautious forecasts predicting the end of September at a level of 26,970 USD.
Rekt Capital, a well-known analyst and trader, points out that despite the rise in Bitcoin’s price in October, caution is needed. He notes that September ended with a price below 27,100 USD, technically making this level resistance.
Despite the optimistic start to October, Rekt Capital emphasizes that if Bitcoin ended the month below this level, there’s always a risk that the current price might end as a so-called “upside wick”. In the past, Bitcoin presented “upside wicks” reaching even up to 8%. The current price increase of Bitcoin is 4.5%, which means that theoretically, any value up to around 29,400 USD can end as an “upside wick”.
In the nearer context, market observers notice positive signals in the order books on cryptocurrency exchanges. Jelle, a popular trader, points out that although demand in the OTC market is growing, financing is negative, indicating some skepticism among investors.
Another trader, Skew, notes that it’s the OTC markets driving the price rise after the opening of Wall Street, pointing to an “interesting discrepancy” between them and the derivatives markets.
In the meantime, the US dollar is also aiming to achieve new local highs. After avoiding a government shutdown, the US dollar index (DXY) quickly rebounded from the losses of the previous week.
Despite optimistic forecasts and a positive start to October for Bitcoin, analysts advise caution. Is the current price rise a harbinger of a long-term boom or just a momentary boost of optimism in the market? Only time will tell.
Photo by Yiğit Ali Atasoy on Unsplash
