Bitcoin Gains Ground After Market “De-Risking”
Bitcoin (BTC) saw an upward movement on October 10 as the start of legacy market trading led to a “de-risking” trend. Earlier in the week, BTC/USD had dropped to $27,300 before rebounding to around $27,700. Traders noted a significant amount of market de-risking in the range of $27,400 to $27,300. The importance of this level lies in the fact that losing it would push prices back to 1-week demand levels. Additionally, buyers need to establish control over prices for a potential move higher.
Optimism Surrounding Bitcoin
Despite the volatility, some market participants remain optimistic about Bitcoin’s prospects. Michaël van de Poppe, founder and CEO of MN Trading, believes that altcoins are facing sell pressure while Bitcoin is holding its support. If BTC manages to break above $28,000, it could potentially reach $35,000-40,000. Van de Poppe previously predicted that Bitcoin’s path towards $30K would begin from its current levels.
Altcoins Suffer Amid Crypto Market Uncertainty
Data shows that Bitcoin’s dominance in the overall crypto market cap reached 51.35% on October 9, its highest level since mid-July. This indicates that altcoins are facing bearish pressure compared to Bitcoin. Popular trader Crypto Tony suggests that many altcoins are breaking major support zones and presents short entry opportunities. For Bitcoin, Crypto Tony highlights the importance of holding the $27,200 level to avoid going short on BTC.
Hot Take: Bitcoin Rebounds Amid Market De-Risking
Bitcoin experienced an upward movement after a period of market de-risking, with BTC/USD recovering from its initial drop. Traders are closely monitoring the $27,400 to $27,300 range as losing this level could lead to a decline in prices. However, there is optimism among market participants, with some predicting that Bitcoin could reach $35,000-40,000 if it breaks above $28,000. Altcoins, on the other hand, are facing sell pressure and breaking major support zones. Bitcoin’s dominance in the crypto market cap has reached its highest level since mid-July, suggesting that it remains favorable compared to altcoins.
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