Bitcoin’s Big October Rally Could Come Only If Its Price Stays Above This Level, Analysts Says
Analysts at QCP Capital are optimistic about a potential “Uptober” rally for Bitcoin, provided that Bitcoin can stay above the critical $60,000 support level.
Analysts voiced their views as U.S. stock markets surged and the S&P 500 hit a new high.
QCP Capital analysts added:
“US stocks are on the rise with the S&P 500 making a new high, but the same level of optimism is yet to be seen in crypto. However, we are hopeful for an ‘Uptober’ rally as long as the key $60,000 support level remains intact.”
In early trading today, the Dow Jones Industrial Average was up 0.5%, while the S&P 500 climbed 0.3%. Bitcoin was also up 2%, trading above $62,500. The global cryptocurrency market cap is currently at $2.27 trillion.
These stock gains follow mixed producer price index (PPI) data released yesterday. The data appears to support expectations for a 25 basis point rate cut by the Fed in November. The probability of a rate cut at the next Federal Open Market Committee meeting is currently 85.9%, according to the CME FedWatch tool. The latest data from the U.S. Bureau of Labor Statistics showed core PPI rising 2.8% on an annual basis, slightly above the 2.7% estimate.
QCP Capital highlighted that “Friday’s PPI data is a key risk event this week,” noting its importance in gauging the strength of the U.S. economy amid signs of cooling inflation.
Meanwhile, Coinbase analysts David Duong and David Han reported that despite Bitcoin’s relatively flat performance this week, market sentiment has remained stable. “Market sentiment remains relatively unchanged, as evidenced by the stable sustained funding rate and open interest over the past week,” they wrote.
Additionally, analysts noted that China’s fiscal policy briefing scheduled for this Saturday could have an indirect impact on crypto markets, especially since many other markets will be closed. “Crypto markets could be used as a way to express proxy views on the size and strength of any fiscal announcements,” they added.
*This is not investment advice.
