bullish

Bitcoin

when

<p>Bitcoin’s price has shown just how unpredictable it can be, with recent ups and downs keeping investors on edge. After jumping from $53,500 to $66,000 in late September, the cryptocurrency quickly dropped to $61,000 in early October. While this sudden dip might raise concerns, it could be setting the stage for a major comeback and long-term growth for Bitcoin.</p>  
<h2 class="wp-block-heading" id="h-bitcoin-s-long-term-prospects">Bitcoin’s Long-Term Prospects</h2>  
<p>Despite encountering rejection after briefly crossing $66,000, <a href="https://coinpedia.org/news/bitcoin-sees-largest-exchange-outflow-since-november-2022-bullish-sign/" rel="noopener noreferrer nofollow">Bitcoin continues</a> to trade near critical levels. The cryptocurrency has been within a trend channel for the past seven months, a successful breakout above the upper trendline could pave the way for Bitcoin to reach new all-time highs</p>  
<p>However, failure to break this key resistance could see BTC continuing to range throughout the rest of the year.</p>  
<p>One key metric that has proven effective in predicting Bitcoin market cycles is the Long-Term Holder MVRV Z-Score. Currently, the Z-Score suggests that BTC still has room for upward movement. With market sentiment leaning toward fear, this metric strengthens the case for a potential buying opportunity.</p>  
<h2 class="wp-block-heading" id="h-market-sentiment-fear-vs-greed-nbsp">Market Sentiment: Fear vs. Greed&nbsp;</h2>  
<p>While, the crypto market is known for its sensitivity to global events, <a href="https://coinpedia.org/news/bitcoin-thinking-a-new-balance-between-innovation-and-tradition-cryptoquant-ceo/" rel="noopener noreferrer nofollow">especially Bitcoin</a>. Investors' emotions constantly swing between fear and greed, and recent geopolitical tensions in the Middle East have pushed Bitcoin sentiment back into the fear zone.&nbsp;</p>  
<p>Historically, when Bitcoin enters this fear-driven stage, it presents an opportunity for savvy investors to "buy the fear" and sell during times of greed.&nbsp;</p>  
<p>However, after touching the $66,000 mark in late September, sentiment moved to a neutral zone. Meanwhile, geopolitical tensions between Israel and Iran have reversed this sentiment, pushing Bitcoin back into fear.</p>  
<p>Experts believe that buying <a href="https://coinpedia.org/news/bitcoin-price-analysis-understanding-market-trends-and-future-prediction/" rel="noopener noreferrer nofollow">Bitcoin during this phase</a> of fear could prove beneficial, especially as we approach the end of the year, which often brings bullish trends.</p>  
<h2 class="wp-block-heading" id="h-bid-ask-ratio-hint-buying-signal">Bid-Ask Ratio: Hint Buying Signal</h2>  
<p>Examining the bid-ask ratio helps determine whether buyers or sellers dominate the market. Recent data shows that spot bids have outweighed asks, indicating that traders have been accumulating Bitcoin during the market pullback.</p>  
<p>This pullback, caused largely by geopolitical tensions, seems to have established a temporary bottom around the $60,000 level, a level where Bitcoin has been holding steady, despite selling pressure.&nbsp;</p>  
<p>As BTC begins to reclaim key moving averages, this could be a sign that now is the right time to buy.</p>

Coinpedia Fintech News

Table of Contents

CoinPedia News

Other articles published on Oct 5, 2024

TapSwap Daily Code for October 5, 2024

Monolithic Blockchains Dominating Crypto Scene: How Solana, Sui & Aptos Crushed September

Memes Flood Internet ahead of HBO’s Satoshi Nakamoto Documentary

BlockDAG’s $3M Surge in 24 Hours Pushes Presale to $84.2M—How XRP and ChainLink Are Stacking Up

Experts Predict a 2000% ROI for Qubetics, NEAR Boasts Scalability, and CRUDO Highlights Transacti...

EigenLayer Email Hack Costs User $6 Million

Join our free newsletter for daily crypto updates!