BTC Price Approaching 2023 Highs: 5 Key Things to Know in Bitcoin This Week
Bitcoin (BTC) is starting the final week of October with a classic surge, as the cryptocurrency market experiences a 3% increase in BTC price. With BTC/USD nearing 2023 highs, a resistance battle is taking place. The main question on everyone’s mind is whether the bulls can emerge victorious.
Traders and market observers are cautious due to the significant resistance that needs to be overcome. As a result, lofty BTC price predictions are not as widespread as initially expected. Many believe that surpassing $32,000 will not be a quick or easy feat.
In addition to grappling with resistance, Bitcoin must also navigate potential macroeconomic obstacles, such as unexpected inflation and geopolitical events. With so much at stake, the week ahead appears to be an exciting rollercoaster ride as Bitcoin bulls strive to effect a major trend change through a breakout from a long-term trading range.
RSI Raises Concerns Among Bitcoin Traders
Some traders remain skeptical about the current three-month highs of Bitcoin, viewing the challenge of surpassing $32,000 as a difficult one. Analyst Daan Crypto Trades suggests that breaking through this resistance level is necessary to target $38,000, but until then, Bitcoin is likely to remain range-bound.
On the other hand, Philip Swift, co-founder of DecenTrader, is optimistic about a Bitcoin breakout, stating that it is “almost there.” Traders are eagerly watching the $30,000 level, as it holds the key to a trend change.
PCE and GDP Data Influence Market Expectations
This week, market attention is focused on the Personal Consumption Expenditures (PCE) Index data and the gross domestic product (GDP) figure for the third quarter in the United States. These data points are especially pertinent as the Federal Reserve prepares to make an interest rate decision on November 1st. An uptick in inflation, as indicated by the PCE, could play a significant role in the Fed’s decision-making process.
While inflation has been higher than expected in recent months, the likelihood of further rate hikes remains low. In fact, there is even a 1.6% chance of a rate cut by the Federal Open Market Committee (FOMC) next week. Meanwhile, the market is also buzzing with expectations for earnings season and continued speculation about Fed actions, which are creating volatility and trading opportunities.
Declining Exchange Balances Point to a Clear Trend
Bitcoin balances on exchanges have been steadily decreasing, reaching levels not seen since 2018. The total BTC balance across major trading platforms currently stands at 2.024 million BTC. This trend of declining exchange balances accelerated after the FTX meltdown in November 2022 and has continued despite this year’s BTC price recovery.
Exchange deposits are currently at year-to-date lows, indicating that coins are steadily leaving exchanges. This shift in trend is significant, as deposits used to consistently outpace withdrawals. The data suggests a growing trend of Bitcoin being moved to cold storage or held by long-term investors.
Low Market Entry Numbers Raise Concerns
Despite favorable price action, the number of new market entrants in the Bitcoin space has been relatively low over the past month. This lack of participation by new investors is concerning and goes against historical indicators that point to turning points in BTC price. This absence of “newbies” entering the market could potentially impact long-term price movement.
Long-term holders currently control a larger portion of the BTC supply than ever before, indicating a shift in market dynamics. While no single indicator can explain overall market behavior, the lack of new market participants is a significant factor that should not be ignored.
Crypto Fear & Greed Index Reflects Market Sentiment
After a prolonged period of little movement, the Crypto Fear & Greed Index is showing signs of volatility. Over the weekend, the index spiked into “greed” territory, reaching its highest reading since July 12. The increase coincided with Bitcoin’s attempt to break through the $30,000 level.
Popular trader Altcoin Sherpa describes the $30,000 area as a “scary zone” and emphasizes the importance of this price level in determining future price action. $32,000 is seen as a critical resistance level, with a breakout potentially leading to a push towards $40,000. Alternatively, a rejection at $32,000 could result in a drop to the low $20,000 range.
Please note that this article does not offer investment advice. Readers should conduct their own research and exercise caution when making financial decisions.
Editor Notes: A Brief Opinion Piece
The latest developments in the Bitcoin market paint an intriguing picture. With the cryptocurrency approaching 2023 highs, the question of whether it can break through resistance and sustain a bullish trend is on everyone’s mind.
Market sentiment and indicators seem to be mixed, with some traders expressing caution and others remaining optimistic. The decline in exchange balances and the absence of new market participants suggest a shift in Bitcoin’s ownership and potentially long-term price movement.
As we navigate the ever-changing landscape of the cryptocurrency market, it’s important to stay informed and make careful decisions based on our research and risk tolerance. For the latest news and insights in the world of cryptocurrency, be sure to check out Uber Crypto News.