Bitcoin (BTC) has seen a 4% increase in price since the start of October, thanks to geopolitical instability that has shifted market focus. The price of BTC remains steady at $28,000, but with the war in Israel causing market volatility, it is unclear what will happen next. However, on-chain metrics suggest interesting times ahead for Bitcoin as it trades within a key range. The weekend saw Bitcoin’s price action centered around $28,000, and traders are hoping for a resistance/support flip. BTC has yet to break through the 200-week moving average, which sits at $28,176. Traders are anticipating increased volumes and potential price movement once futures open back up.
The conflict in Israel has caught the attention of crypto market participants who expect increased volatility in Bitcoin and other cryptocurrencies. The memory of Bitcoin’s reaction to the war in Ukraine in February 2022 is still fresh, with an 8% down candle that was quickly erased. Some analysts believe that Bitcoin’s bullish flag is still in play and that October is typically a bullish month for the cryptocurrency. However, others remain cautious about what might happen next.
In addition to geopolitical tensions, macroeconomic data releases this week will also impact the market. The September Consumer Price Index (CPI) report holds additional importance for the Federal Reserve after last week’s surprise employment data. A hot CPI could push BTC/USD back into its current range lows if there are concerns about another interest rate hike. Other data releases this week include the Producer Price Index (PPI), jobless claims data, and Fed meeting minutes.
On-chain metrics show that Bitcoin’s network value to transaction (NVT) signal has spiked to its highest levels since 2018. NVT is used to estimate local BTC price tops and bottoms by comparing market cap to daily on-chain transaction values. This spike suggests that Bitcoin’s value is now moving independently of transactional utility, indicating its growing role as a store of value. The Crypto Fear & Greed Index reflects an overall sense of indecision in the market, with investors remaining neutral.
In conclusion, Bitcoin’s price remains steady amid geopolitical tensions and upcoming macroeconomic data releases. Traders are waiting for increased volumes and potential price movement once futures open back up. The conflict in Israel has caught the attention of crypto market participants, who are cautious about potential volatility. On-chain metrics suggest interesting times ahead for Bitcoin as it trades within a key range. Macro data releases this week, including the CPI report, will impact the market. The NVT signal has spiked to its highest levels since 2018, indicating Bitcoin’s growing role as a store of value. Overall market sentiment remains neutral, with investors unsure about the direction of BTC/USD.
By
By
By
By