- Bitcoin (BTC) is consolidating around $27,700 after failing to hold the $28,000 level, partly due to headwinds in traditional financial markets.
- Crypto market analysts are giving mixed opinions with some bullish for BTC price surge to $40,000 while others believe that the macro headwinds would drag Bitcoin down to $20,000.
After failing to hold the $28,000 level, the world’s largest cryptocurrency Bitcoin is now consolidating around $27,700. The headwinds in the traditional financial markets have alleviated the BTC price rally and calmed down the crypto market after the early October rally.
According to analysts at Matrixport, Bitcoin (BTC) recently broke free from its downtrend, which had persisted since the summer, and successfully transformed the $27,000 level into a strong support base. They suggest in their report that BTC’s price might have its sights set on $30,000. However, the initial surge witnessed earlier in the week didn’t see substantial follow-through, with BTC’s trading volume declining from $19 billion to $11 billion.
Enigma Securities, a firm specializing in institutional digital asset liquidity and advisory services, released a report on Wednesday forecasting a period of low volatility in the crypto markets for the coming months.
In line with this sentiment, Vetle Lunde, a senior analyst at K33 Research, commented in a market report that markets are likely to consolidate and trade sideways during October. This extended period of consolidation may present an opportunity for long-term investors to accumulate assets.
Bitcoin (BTC) At $20,000 or $40,000
Historically, Q4 has been the most positive and bullish quarter for Bitcoin price performance. Several on-chain metrics, such as low coin days destroyed and high taker buy ratios, indicate that investor confidence in Bitcoin at its current price level remains stable.
In Bitfinex Alpha’s 74th report, they emphasize the macroeconomic factors that could contribute to Bitcoin’s potential growth. The relatively low core inflation in August and strong consumer spending trends reinforce the possibility of a gentle economic slowdown in the United States.
However, analysts have mixed opinions on the Bitcoin price going ahead. Michaël van de Poppe, a trader, shared his optimistic outlook for the current week. He referred to it as “Uptober” and expressed positivity for the fourth quarter, suggesting that it might witness significant growth, possibly driven by the approval of ETFs (Exchange-Traded Funds) and a pre-halving rally. He mentioned that a Bitcoin price of $40,000 could be reasonable under these circumstances.
However, despite the positive outlook, some market strategists are highlighting ongoing challenges that could potentially hinder this growth trajectory. These challenges include high energy prices, rising interest rates, and geopolitical tensions. One trader and analyst, known as ‘Cryptobullet,’ pointed out in an analysis shared on the social media platform X that Bitcoin (BTC) prices hovering around $20,000 are still a possibility. He identified a pattern resembling a “giant head and shoulders,” indicating a potential rise to $28,000 followed by a decline back to the $20,000 range.
Altcoin Price Rally
On the other hand, some altcoins like Avalanche (AVAX) and Ripple’s XRP have registered good rallies. Avalanche’s AVAX, a Layer 1 blockchain, stood out as one of the top-performing major cryptocurrencies, experiencing a notable 7 percent surge. Additionally, XRP displayed a strong rally, with a 3 percent increase earlier in the day. This rally was attributed to positive developments such as Ripple’s Asian division securing a license in Singapore and a favorable court ruling.
