Bitcoin is demonstrating unsettling trends as it nears the Chicago Mercantile Exchange (CME) opening. Contrary to expectations of a potential price surge, the cryptocurrency has not exhibited a significant leap despite the absence of anticipated geopolitical tensions, especially regarding Iran. The looming threat now is Bitcoin’s slip toward ending the day below $77,000, which might spell further declines when Asian markets commence.
What Economic Events Could Affect Bitcoin This Week?
A busy week on the macroeconomic front, highlighted by Friday’s employment numbers release, could heavily influence Bitcoin’s trajectory. With past data hinting at unchanged interest rates from the Federal Reserve, the upcoming figures could inform future policy decisions. Interest rate discussions are at the forefront, and should employment figures outperform, discussions may tilt toward reconsidering last year’s cuts.
On the subject, Turkish on-chain expert Barış Kardeş notes that the $77,000 threshold holds significant weight for Bitcoin’s stability.
“Losing $77k must be avoided… Weighted Major Score 5.5. This level has historically indicated local bottoms. As the score increases, the likelihood of a bottom increases. During market bottoms, scores reached 8.7 and 10.”
Bitcoin trades below the key mark currently, leaving analysts unsure if this is the last dip.
Will the CME Gap Influence Bitcoin’s Path?
Anıl, another analyst, centers his analysis on the CME gap, suggesting a gap on the upper side still needs closure. Typically, these CME price gaps close within a three-week timeframe, albeit unpredictably.
“It seems like a $6-7k difference will arise at Bitcoin’s CME opening. At the very least, we have a reason to aim for $84k. Let’s remain patient, ladies and gentlemen.”
Present analysis indicates BTC trading below the ETF cost average. Breaching the strategic cost area, especially with closures below $81,000, suggests a future aim closer to $56,000 in the long run, beginning next week. This period will be pivotal as investors grapple with the choice of buying the dip or selling amid fears of deeper declines. Resulting actions will heavily steer Bitcoin’s spot price.
• Bitcoin’s price flirting with crucial levels
• Analyst attention on CME gap predictions
• ETFs crucial; spotlight on BlackRock’s role
• Increased trading volume raises liquidity questions
• Potential pressure to rally to $84k
Market dynamics observed post-October 10 suggested a shift, with prices unable to recover come November. This scenario prompted DonAlt to reduce its risk exposure significantly by converting assets to cash. Declining to engage in the market again, he feels content with this strategy.
“I managed to exit luckily, avoiding a 30% drop in BTC and greater declines in altcoins. I will remain calm unless something disastrous happens or we reach unbearable levels (or unless we regain the levels lost over the last few weeks, which seems unlikely).”
