Wrapping up the highly anticipated month of ‘Uptober,’ the burning question on everyone’s mind is: What comes next for Bitcoin [BTC]?
A recent video by Benjamin Cowen, the CEO and creator of Into The Cryptoverse, sheds light on this query. In his latest content, Cowen emphasized the significance of the final week of the month, noting,
“The upcoming week is likely to be the determining factor for Bitcoin’s trajectory throughout the remainder of the fourth quarter.”
To Descend or Ascend: What Direction Will Bitcoin Take?
Cowen explained that the leading cryptocurrency is currently at a critical juncture between viewing its cycle and monetary policies.
Traditionally, BTC has exhibited strength in the fourth quarter following its halving events.
Unless faced with adverse macroeconomic conditions, the former trend could propel prices upwards in Q4 2024. Therefore, a sustained breach of the $70,000 level could reinforce the cyclic outlook.
Alternatively, if Bitcoin stumbles around the $70,000 mark, retracing to $64,000, the monetary policy perspective might dominate.
This narrative aligns with historical patterns where BTC showed retreats post reaching peaks in April and August. Consequently, this scenario implies a temporary setback, delaying the next major rally possibly until early 2025.
Impact of the Upcoming Labor Market Report: a Decisive Element?
So, what holds the key to Bitcoin’s destiny? The answer is rather straightforward. The CEO pointed out that labor market data is likely to steer the short-term trajectory.
Intriguingly, CryptoCrypto pointed out that weaker job reports in the past—indicating a decrease in employment—often triggered Bitcoin uptrends.
For instance, following the April jobs report in early May, Bitcoin saw a 6% upsurge as the labor market softened. Conversely, robust job reports in June and July corresponded with declines in BTC’s price. Hence, if history repeats itself, the forthcoming report could play a pivotal role in determining BTC’s outlook.
Besides price movements, Cowen accentuated the nearing of Bitcoin’s market dominance to a critical 60% threshold. This milestone in dominance signifies its expanding influence and may prompt adjustments across the market.
Rising Greed in the BTC Sphere
Heightening the anticipation, Bitcoin’s Fear and Greed Index presently stands at 72.
It is worth noting that elevated levels of greed often signify investors’ expectations of further price hikes, bolstering a bullish sentiment.
Yet, this also raises concerns about a possible overheated market, particularly if external factors like regulatory changes or economic data shift sentiment, sparking sell-offs.
Insights from the Liquidation Heatmap
In a bid to further explore Bitcoin’s potential near-term path, CryptoCrypto analyzed Coinglass’ one-week liquidation heatmap.
The heatmap illuminated a strong liquidity cluster around $68,900. Therefore, a move towards this pivotal zone could materialize in the short run.
At this juncture, the coin confronts the possibility of either being rebuffed or breaking through, each carrying implications for the broader market.
Additionally, CryptoCrypto’s examinations hinted at an impending supply shock, potentially setting the stage for a significant upward price surge, favoring the latter scenario.