Bitcoin price set to enter next phase of bearish price action

(Filip L. – FXStreet)

– Bitcoin price action slides over 5% for the week.

– BTC price action risks slipping below an important supportive barrier.

– Expect to see price action deteriorate further – possibly to $16,020 by mid-November at this rate.

Bitcoin (BTC) price action is not in a sweet spot this week as markets were rattled once again by events in the United Kingdom. Although initially, one would think it has nothing to do with cryptocurrencies, the problem with the UK is that it is on the brink of collapse. During her 45-day tenure, Prime Minister Truss succeeded in almost pushing the UK bond market into the abyss. If the BoE had not stepped in, the IMF would have had to make sure no spillover effects touchedEurope, the US and Australia, risking a blood bath in the markets with cryptocurrencies as one of the casualties of the meltdown.

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Bitcoin price action, aside from the turmoil in the markets, arguably had it coming anyway after its firm rejection by the 55-day Simple Moving Average (SMA). That happened on Tuesday as the political issues escalated again in the UK, until finally Truss was forced to resign on Thursday. With the political field now wide open, the UK is at the mercy of the markets with downside pressures coming from all quarters.

BTC price action is thus set to slip firmly below $19,036 and enter back into that lower area tested in September. A return of $18,000 would make sense, as that would be around the low of September 21, 2022. Overall, and depending on the evolution in the coming weeks, traders best prepare for $16,000 to be on the quote board by mid-November.

The only straw that bulls have to hang on to is that earnings season next week could bring some positive returns together with the fact that the new economic plan from the new finance minister Hunt will be rolled out – either with or without a new PM in office. That should help calm the markets, and we could see some bulls returning to the scene. A return to $19,662 could be on the cards, along with a retest once again of the 55-day SMA and that red descending trend line.

Pressure in stocks and gold weighs on Bitcoin

(Alexander Kuptsikevich – FxPro Financial Services Limited)

Market picture

Bitcoin is trading near $19K on Friday morning, losing 0.5% overnight. It hovered between $18.9K and $19.3K on Thursday, remaining pinned closer to the lower end of its trading range due to pressure in the US equity market and gold at the close of trading in New York.

Bitcoin has closed lower for three consecutive days, but the bears have not yet decided to storm the support of the last four months. So far, we have seen an inertial retreat of cryptocurrencies amid a melting demand for risky assets (gold and equities) due to rising US interest rates.

Cryptocurrencies have been selling bitcoin for the past few months, reducing their reserves to a three-year low, according to a Santiment report. It was only last week that the whales changed tactics and began returning to cold-storing BTC.

Hashrate Index notes that public miners sold fewer bitcoins than they mined for the first time since May, in August and September. The market continued to pressure miners’ financial strength throughout the third quarter.

News background

Bitcoin will grow by 400% and reach $100,000 next year even before another halving, said renowned crypto trader and blogger Ton Weiss. According to him, the halving will be implemented earlier than investors expect, closer to March or April 2024. But the hype of the upcoming event will manifest itself much earlier.

The cryptocurrency division of investment giant Fidelity Investments will offer institutional clients the option of trading Ethereum as early as the end of October. Bitcoin trading there was launched back in 2019.

According to a poll, more than 77% of Salvadorans opposed the purchase of bitcoins by the state, calling the government’s decision unfortunate. El Salvador declared BTC legal tender in September last year.

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