Bitcoin (BTC) starts a new week firmly back in the “Uptober” spirit as the weekly close gives way to a classic short squeeze.In a return to classic BT
Bitcoin (BTC) starts a new week firmly back in the “Uptober” spirit as the weekly close gives way to a classic short squeeze.
In a return to classic BTC price volatility of the kind seen earlier in the month, the largest cryptocurrency is tackling $28,000 ahead of the first Wall Street open.
While still in an established trading range, Bitcoin is keeping traders on their toes — both longs and shorts are getting caught out by short-term spot price moves, and liquidations are mounting.
Sentiment is fluctuating in step with these moves. Heading toward the top of the range, Bitcoin sees a flurry of bullish projections, with these replaced by fear and foreboding when downside reenters.
Well-known market commentators thus remain overall cautious, even as October — traditionally Bitcoin’s best-performing month — plays out.
Behind the scenes, the signs are solid — network fundamentals are headed to new all-time highs, and difficulty is due what could end up its third-largest hike of 2023.
With macroeconomic data giving way to a focus on geopolitical tensions in the Middle East this week, there is plenty for Bitcoin investors to keep an eye on when it comes to external sources of BTC price volatility.
Cointelegraph takes a closer look at these market phenomena and more in Cointelegraph Markets’ weekly rundown of BTC price triggers waiting in the wings.
BTC price: Short squeezes and “old” coins
Weekly close volatility on Bitcoin did not disappoint this week, with one short squeeze following another to see BTC/USD add $1,000, data from Cointelegraph Markets Pro and TradingView confirmed.
The climate headed into the first Wall Street open is decidedly different to that over the weekend and before, where downside characterized the landscape amid problematic macroeconomic reports from the United States.
Now, optimism is returning, with Michaël van de Poppe, founder and CEO of MN Trading, calling the trip to multi-day highs of $27,975 a “great move.”
“Dips are for buying, most optimal entry would be $27,300,” he told X subscribers in part of the day’s commentary.
Van de Poppe further predicted continuation of the uptrend.
Covering the impetus behind the latest action, monitoring resource CoinGlass noted liquidations among short BTC positions.
“At 27450, a large number of shorts have been liquidated,” it concluded alongside a liquidation heatmap for BTC/USDT perpetual swaps on largest global exchange Binance.
“Next focus on the liquidation levels of 26500 and 27660.”
Popular trader Crypto Tony was more cautious, having previously warned of the potential for significant downside pressure taking Bitcoin all the way back to $20,000 in the coming months.
Stopped out as we reclaimed the $27,300 resistance zone, and now just sat waiting for my next trigger. The bulls could very well take us up to $29,000 resistance zone, but remember this is a heavy area
If you are longing now just be cautious pic.twitter.com/aQGF1ZVJuL
— Crypto Tony (@CryptoTony__) October 16, 2023
For research firm Santiment, meanwhile, there was more to the change of tone than merely short squeezes.
“Older” BTC was on the move, it showed, having left their wallets after an extended period of dormancy immediately prior to the return to $27,000.
“The largest amount of dormant $BTC changing wallets since July, these spikes in our Age Consumed metric indicate price direction reversals,” part of accompanying comments on an illustrative chart stated.
Dalio warns over 50/50 outcome of “World War III”
In contrast to last week, the macro landscape in the coming days contains less by way of significant data prints from the U.S.
Instead, nerves over potential market impact from the ongoing Israel-Hamas conflict are taking center stage, while the specter of inflation lingers in the background.
The latter was previously all too clear, as successive data releases last week and before showed U.S. inflation persisting beyond market expectations.
The Federal Reserve’s next meeting to set interest rates is due on Nov. 1, and with two weeks remaining, inflation cues will be all too important for risk asset sentiment.
“2 weeks until the November Fed meeting,” financial commentary resource The Kobeissi Letter summarized on X while shortlisting the week’s main U.S. financial events.
These include a speech from Fed Chair Jerome Powell, one of a total of 17 Fed speakers due to take to the stage this week.
Key Events This Week:
1. Retail Sales data – Tuesday
2. Housing Starts data – Wednesday
3. Existing Home Sales data – Thursday
4. Fed Chair Powell Speaks – Thursday
5. Q3 2023 earnings season begins
6. Total of 17 Fed speaker events
2 weeks until the November Fed meeting.
— The Kobeissi Letter (@KobeissiLetter) October 15, 2023
In a sign of the…
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