Bitcoin hit a six-week high as a significant amount of funds entered the cryptocurrency market in early October.
The major cryptocurrency rose to $28,575 on Tuesday, reaching the highest level since August 17. The token gained 4.1% in September, but was still down 11% in the past quarter. The major digital currency is up 67% year-on-year. This shows a partial recovery from its decline in 2022. However, the token is quite far from its all-time high of almost $69,000 set during the pandemic.
Researchers of Bitcoin’s price history are finding solace in seasonal trends. October is usually considered a strong month for the cryptocurrency. According to data compiled by Bloomberg, over the past decade, the blockchain has grown by an average of 24% in October.
OrBit co-founder Caroline Mauron said there has been a significant influx of purchases, which may be related to the start of the new reporting quarter.
The 10-year U.S. Treasury bond yield is approaching its highest levels since 2007. This reflects rising expectations of a prolonged period of higher interest rates from the Federal Reserve in order to fight inflation. Tightening financial conditions are putting pressure on stocks and cryptocurrencies.
The digital-asset sector is also awaiting the trial of FTX founder Sam Bankman-Fried over the exchange’s collapse last November. He is denying charges of fraud and money laundering. However, if found guilty, Bankman-Fried faces a lengthy prison sentence.
Digital asset research firm Kaiko reports that over the past 11 months the trading volume and importance of the cryptocurrency market has fallen to its lowest levels in years. Nevertheless, the firm hopes for the best and believes that the current situation may lead to the necessary changes.
In terms of wave analysis, the BTCUSD price is in the formation of the third ascending wave on the H4 timeframe. A break through the top of the first wave at the 27,485 level has already occurred. The upward movement may intensify in the near term.
Signal:
The short-term outlook for the BTCUSD pair suggests buying.
The target is at the level of 30,200.
Part of the profit should be taken near 28,550.
The Stop-loss is set at 25,865.
Bullish trend has a short-term character, so the trade volume should not be more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
