30s Summary

Bitcoin’s value is increasing again despite a drop to below $60,000 last week, inching towards its previous price point over $65,000. The digital currency’s market is in a consolidation phase with a gradual increase in buying power. The earning season and US Presidential Election are impacting the market, but the recent dip in Bitcoin’s value doesn’t indicate a larger trend. Bitcoin might retest the $65K mark soon and has liquidated $100 million of short positions across all cryptocurrencies. Despite a mixed reaction to the current Bitcoin cycle, seasoned investors and newcomers remain optimistic about its potential returns.

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Bitcoin value is on the rise again this week, despite a dip to levels below $60,000 last week. The digital currency seems to be moving steadily towards its previous price point over $65,000. The entire Bitcoin market is moving slowly within a consolidation phase, with experts pointing to a gradual increase in buying power.

We’re starting to see the earning season kick in, possibly affecting interest rate cuts considered by those who dabble in the market. Moreover, the US Presidential Election is causing a bit of a stir. Interestingly, so far in this cycle, there hasn’t been much activity from regular, everyday buyers, which is a departure from historical trends. Same goes for ETF investors, as some of the decisions made last week point to a general sense of unease about the state of the market.

Thorough analysis is showing that the Bitcoin shortfall to below $60K was just an outlier and does not signify a larger trend. Bitcoin had been steadily gaining, getting so close to $65K that the dip might have just been a hiccup. Even with all this, Bitcoin is still performing well for October, making traders optimistic about its performance in the future. Some are hopeful that the currency will regain its old highs, either by the end of the year or early in 2021.

Looking at a key aspect of the market, the Elliott Wave theory (which helps players time their moves), seemed to suggest that Bitcoin had deviated from its predicted path. But that’s not necessarily something to worry about. Since it’s pushing higher than it was expected to, that means the dip isn’t a roadblock to its return to former glory. The currency is expected to retest the $65K mark soon.

A whopping $100 million of short positions across all cryptocurrencies were liquidated following Bitcoin’s weekly close. According to CoinGlass, an industry monitoring resource, the total liquidation is likely to go above $180 million.

The value of Bitcoin is slowly challenging some hefty obstacles. It’s in the middle of a nearly 8-month-long consolidation phase and traders are keen to reach the old highs. Rekt Capital, a popular trader and analyst, pointed out that the currency needs to surpass the previous daily high point of $64,300 reached this August. Interestingly, this price point seems to be struggling to maintain its status as a serious hurdle to Bitcoin’s rise.

While observers are noticing an increase in Bitcoin’s buy walls across exchanges, they’re now looking at a Bitcoin showdown at $65,000. They seem hopeful that the buy walls would be strong enough to handle any sell-offs, putting the buyers in control of the market.

Even as Fed rate cut expectations are cooling, businesses reporting their earnings this week might stir things up. What’s more, the upcoming US Presidential Election could have an impact. While the economy looks rough with rising unemployment and inflation rates, Bitcoin value seems to be holding up pretty well.

Some users are unsure about the behaviour of the current Bitcoin cycle, particularly retail users. This cycle seems to be moving away from historical trends. But the latest data gives hope to a comeback, though it’ll be a rocky one.

The US Bitcoin exchange-traded funds market tells a similar story. There have been some jitters and the flow of funds has been mixed. Despite these issues, US stocks performed well last week, hitting all-time highs. Bitcoin also rallied, moving away from its mid-September low of $58,860.

Bitcoin’s trajectory might seem confusing, but it’s important to remember that it’s part of the normal ebb and flow of the market. Despite all the ups and downs, both seasoned traders and newcomers still see potential for great returns in Bitcoin.

Source: Cointelegraph