Bitcoin continues to cling onto the $19,000 mark with a price swing anticipated any time soon. BTC’s trading volume has fallen below the 20-day moving average because of a decline in activity. Data suggests that the market will continue to trade in a range for the foreseeable future.
The month of October, which historically has been a strong month for Bitcoin daily returns, highlights the overall lack of volatility. Crypto traders are unsure whether the inflation report and Consumer Price Index (CPI) data will be sufficient to push the popular cryptocurrency to break out of the $18,500 – $24,500 range. Bitcoin will try to bounce off the first support at $18,843. The relief rally is likely hit a wall at the 20-day exponential moving average at $19,482. But if the BTC price slips from this resistance, it will suggest that bears are selling on rallies. However, a break could pull the price to $18,125 to $17,622 support zone. If it falls, it can dip to $15,800 – $15,000. A relief will occur if there is a break above the downtrend line and the recovery could rise above $20,500.
Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs, called the CPI report a benign reading that investors are neither overly disappointed nor overly excited about. She highlighted Bitcoin and Ether have traded in a narrow range for about a month and their moves have been largely macro led as the crypto industry quietly builds new narratives for the next bull run. Jablonski believes crypto and equities will stay in this trading range and a lot of the investor funds that typically go into the market will remain on the sidelines. She added that there is a sense that they are closer to the bottom than not, but there also isn’t this urgency to get in from a lot of investors because of the short-term uncertainty.
As such, crypto and any type of growth assets remain in purgatory.
