Despite a potential correction in the short run due to increased volatility, the Bitcoin outlook remains rather positive in the medium term. The market is gradually regaining its footing after the recent rally, and investors are waiting for new growth catalysts.
In early October, the leading cryptocurrency hit another all-time high of $126,000, boosted by massive inflows into spot ETH ETFs and the Federal Reserve’s (Fed) shift in monetary policy. A correction followed, driven by major holders taking profits. Despite this short-term decline, institutional demand for exchange-traded funds remains strong, signaling steady upward momentum in the long run.
Expectations of Fed interest rate cuts create favorable conditions for risky assets, including Bitcoin, and support a deflationary trading strategy. If other strong drivers emerge in the market, such as impressive inflows into ETH ETFs or a positive news background, the cryptocurrency may swiftly resume its growth.
A buy position in Bitcoin should be entered when the price retests the support level at $111,850. This strategy will provide a better risk-to-reward ratio.
The overall recommendation is to buy Bitcoin from $111,850. Profits should be taken at the level of $120,150. Stop Loss could be set at $105,000.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
