Bitcoin Hits New October Lows as Bear Market Continues
Bitcoin (BTC) reached new lows in October after the Wall Street open on October 11, indicating that the cryptocurrency bear market is in its final stage. At the time of writing, Bitcoin was heading towards $26,600 as the downside momentum increased. The drop was triggered by the release of United States inflation data, which showed that the Producer Price Index (PPI) for September came in higher than expected at 2.2% year-on-year (YoY). This raised concerns about ongoing U.S. inflation pressures and resulted in a stronger dollar and lower risk assets.
Analysts Stress Importance of $26,800 Support Level
Experts emphasize the significance of the $26,800 support level for Bitcoin. Michaël van de Poppe, founder and CEO of MN Trading, commented on Twitter that the hotter-than-expected PPI report could cause a bounce upwards for the U.S. dollar and a correction downwards for Bitcoin. Van de Poppe believes that Bitcoin may reverse its trend in November or December and enter an uptrend.
Thin Bids on Binance Order Book
Prior to the PPI release, there was a lack of bid support on the BTC/USD order book on Binance. The bids were thin around $26,650, indicating a potential downward movement for Bitcoin.
Interest Rates Expected to Remain High
Keith Alan, co-founder of monitoring resource Material Indicators, noted that the YoY Core PPI report showed an upward trend since July. He interpreted this as a sign that interest rates may remain high for longer than previously expected, which could be detrimental to risk assets.
Hot Take: The End of the Bear Market?
Bitcoin’s recent drop to new October lows suggests that the cryptocurrency bear market is in its final stage. Analysts stress the importance of the $26,800 support level and believe that Bitcoin may reverse its trend and enter an uptrend in November or December. The lack of bid support on the BTC/USD order book on Binance further indicates a potential downward movement for Bitcoin. Additionally, the YoY Core PPI report suggests that interest rates may remain high for longer, which could negatively impact risk assets. Overall, the future of Bitcoin remains uncertain, but good times may be ahead for the cryptocurrency.
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