Despite the Bitcoin (BTC) price ending with more than $60,000 for a new all-time high price recorded, market participants are worried about the sustainability of the increase or the disappointment that may come with a price drop. Time and predictions will change the narrative of a $100,000 BTC price hike or a dip around $50,000
5 Details to Observe in Bitcoin in the Coming Week
Despite the strong participant support for Bitcoin, it is essential to consider critical factors that can impact the price of Bitcoin in the coming week. These factors may not come directly, but their impacts will have a massive imprint on the crypto industry.
1. Bitcoin’s best month since last year
There is market jubilation surrounding the crypto space due to the highest close experienced by Bitcoin users this October. It has been since 2020 such a high monthly close was experienced. The $60,000 monthly close is not the only target. Participants now target Bitcoin to make and go over the $61,000 price for November.
When you observe Bitcoin on short timeframes, you will agree that it is only taking the upward ride since the close on Sunday. This close brought Bitcoin back to $59,500 Bitcoin’s price before it made a $62,000 price turn after some hours.
Although some Bitcoin fans—such as PlanB—are nervous about the possible worst-case scenario with the digital currency. Their price predictions come with a month-end close of $63,000 BTC price as the minimum for October. While this may hold because of the buyer support for Bitcoin, its price should hit around $98,000 by month’s end to keep its established historical accuracy.
Meanwhile, PlanB’s prediction results are favorable. Despite the better trading model adapted by PlanB, the market received a hint that Bitcoin may not have a month-end’s price of $63,000. But it may be close enough while not slipping below $61,000. An overnight correction made October the best month with 40% returns since December 2020.
2. Users of HODL more
If you are one of the previous hodlers, September came with a load of conviction to hodl more. There was a significant indicator of the “buy the dip” phases for Bitcoin users. Likewise, October came with the same campaign. However, it brought sprinkles of retracements. Despite that, it convinces long-term hodlers the more and makes them buy more dip.
A recent research revealed that the price hike was not convincing enough for BTC hodlers to sell their BTC. Despite the retracement from last month, long-term hodlers are not disturbed by the price rebound, and they keep obtaining more BTC. This means that the supply shock grew over a month. These individuals are majorly responsible for BTC price performance.
It is noteworthy that these long-term hodlers are mines from the 2009-2014 era. They transitioned to long-term hodlers, and their sustainable behavior survived them through extreme market performance.
3. Fed’s announcement expected by market participants
The market expectations for the position of the United States Federal Reserve on how to deal with the worldwide inflation cutting across the states may have a market impact in the digital currency space. The traditional market announcement will impact adoption and participation in the cryptocurrency market.
That’s because individuals and institutions will turn to cryptocurrency (especially Bitcoin) as the best way to save their money from inflation. Likewise, the supply chain crisis may extend to next year. How fast the Fed moves will determine massive interest in cryptocurrency and how users can leverage it to preserve their money.
4. Another straight increase resulting from difficulty
If you are very focused on having the upward trend activated for BTC, you should consider Bitcoin network fundamentals. It helps you to understand how mining plays a vital role in BTC supply. Aside from what we experienced in 2018, the difficulty will place BTC adjust consecutively for good.
The competition in the mining industry now replenished for the losses accrued when China placed a ban on crypto mining activities on its land. Another fundamental that works in this regard are the “hash rate.” It is impossible to measure, but estimation reveals that it gears toward the new all-time highs we’ve seen in the market.
5. Exchange balances dropped to the lowest
Over three years, the exchange Bitcoin reserve has not reached the lowest exchange balance it experiences now. The supply shock due to Bitcoin bearish movement reveals how exchanges have the lowest balances because more orders are pending while exchanges may not have up to that for Bitcoin purchase.
Against the Odds
Despite the impact of different regulatory policies and the huge China ban, Bitcoin rallied to end with a new all-time high record of about $61,000. The last time such happened was in December 2020, when every participant and institution favored the market. However, there is a middle ground for users to acknowledge that BTC may be as high as $100,000 or as low as $50,000 by month’s end.
Above all, October 2021 came with a quarter gain of 40%.