Bitcoin Price Surges Past $28,000
Bitcoin (BTC) is starting the new week, month, and quarter with a bullish move as it surpasses $28,000. This marks the cryptocurrency's best weekly close since mid-August and has Bitcoin bulls excited about what lies ahead. With October historically being a month of significant price gains for BTC, many are anticipating an exciting few weeks to come.
Bitcoin Bulls Acknowledge Reversal Risk
As Bitcoin cleared the September monthly candle with little volatility, it experienced a sudden growth spurt, pushing its price just below $28,000. However, some traders are warning of a potential reversal. Exchange order book trends show that there is significant liquidity available, and spot traders hold the key to determining the market's direction. Bitcoin is also facing resistance at the 200-week moving average, further adding to the uncertainty.
A Classic "Uptober?"
In contrast to last year, when Bitcoin experienced a dip at the start of October, this year's strong beginning indicates a potentially classic "Uptober." Since 2018, BTC/USD has not finished October lower than it started, and popular market commentators are optimistic about Bitcoin's performance in the coming weeks. Some even predict that BTC/USD could surpass $30,000 for the first time since June.
Difficulty Due to Decrease
Despite the bullish sentiment in spot markets, Bitcoin network fundamentals are not echoing this optimism. The difficulty of mining BTC is expected to decrease by 0.7% at its next readjustment on October 2. This comes after difficulty reached record highs in recent months. The relationship between price and hash rate remains a topic of debate, with some believing that price follows hash rate, while others argue the opposite.
Fed Speakers Headline Macro Diary
While Bitcoin experiences excitement in the first week of October, U.S. macro data is expected to remain calm. The focus will be on the forthcoming commentary from officials at the Federal Reserve as markets look for clues about the future direction of interest rates. With 13 Fed speakers scheduled for this week, volatility in the market is expected.
Analysis Turns Positive on Dollar Liquidity
Financial commentator Tedtalksmacro highlights the relationship between U.S. dollar liquidity and BTC price action. He suggests that delta over "outright liquidity" provides valuable insight. He is cautiously optimistic about Bitcoin's outlook, predicting sideways to higher movement in the years to come, but warns of potential volatility in the short term.
