Bitcoin Is Stuck In A Range As Traders Anticipate A Strong November
A few analysts anticipate a slight pullback before a seasonally strong period for the prices of cryptocurrencies.
It seems the incredible bullish sentiments for Bitcoin are about to ebb after the cryptocurrency touched an all-time price of 66,900 USD around a fortnight ago. As of now, traders are getting ready for a strong November. They are expecting positive digital currency returns for the year-end.
Yet, some trade analysts see space for a slight pullback amid the growing interest in the BTC futures market. A typical bearish signal, rising open interest means the system has more leverage.
This boosts the possibility of a liquidation event where the price falls rapidly and crypto traders are compelled to sell. A sales trader at GlobalBlock called Marcus Sotiriou mentioned this in an email sent to CoinDesk.
Bitcoin gains seasonal strength
BTC may gain 11 percent to 18 percent in the 4th Quarter. This is one of the reasons why a few trade analysts continue to have a bullish outlook on digital currency prices for the rest of the year.
It seems that Bitcoin has been following a seasonal pattern and a sell-off earlier in 2021. September was pretty volatile, although with a limited downside as traders decided to purchase on dips.
Although BTC experienced wild price swings, its long-term uptrend is still undisturbed. Usually, analysts view digital currencies as an investment in the early stage. There is still a significant knowledge gap as far as cryptocurrencies are concerned.
According to QCP Capital, a crypto trading firm, the crypto industry is fast gaining traction amid professional investors.