Bitcoin (BTC) bottomed out in October after Wall Street opened on October 11, with one analyst hailing the “final leg” of a cryptocurrency bear market.
Bitcoin traders stress the importance of $26,800
Data from Cointelegraph Markets Pro and TradingView Bitcoin prices showed further weakness, costing bulls $27,000 support.
At the time of writing, the largest cryptocurrency is heading towards the $26,600 level with the downtrend gaining momentum.
This move came in the wake of inflation data in the United States in the form of Producer Price Index (PPI)The September reading was higher than expectations – 2.2% versus 1.6% year-on-year (on-year). This adds to concerns about continued inflation pressures in the US, with a stronger dollar rising and risky assets declining.
“The PPI is coming in hotter than expected, which means the DXY is likely to bounce higher and Bitcoin will see some corrections south. “We are still monitoring the lower bounds here for potential entries,” said Michael van de Poppe, founder and CEO of MN Trading. , Comment On X.
Having already lost $1,000 since the completion of a “death cross” on the daily chart at the beginning of the week, Bitcoin has reached its lowest levels since September 29. In doing so, it erased its previous gains in October and removed the month’s classic “Uptober” status.
“The final stage of the crypto bear market,” Van de Poppe said I continued.
“We may actually reverse here in October, enter an uptrend in November (retesting the $26,800 area) or we may reverse at the end of December for a pre-halving rally and ETFs. Good times are ahead for Bitcoin.”
Following this action, popular trader Skew also highlighted $26,800 as a crucial level within the current range.
“We will wait for the close but the rejection so far also appears to be the last area where the bulls can do something ~$26.8k.” Tell X subscribers around the four-hour chart.
At the same time, fellow trader Daan Crypto Trades pointed to multi-month highs in open interest, with the high levels sparking bouts of volatility that characterized the first week of the month.
#Bitcoin At the highest level of open interest since the August dump.
This is usually met with some sort of pressure from this point. pic.twitter.com/IZuhVbt6lt
— Dan Crypto Trades (@DaanCrypto) October 11, 2023
Binance order book shows low bids
Before issuing the PPI, monitor the material indicators of the resources show up Lack of bid support on the BTC/USD order book on the world’s largest exchange, Binance. This combined around $26,650.
Related: War, CPI, and $28K Bitcoin Price – 5 Things to Know in Bitcoin This Week
“This morning’s year-on-year core PPI report shows that this measure has been trending higher since July,” co-financier Keith Allan wrote in part of his follow-up commentary.
now He added Interest rates may remain at current levels without dilution from risky assets for a longer period than previously expected.
“I’m not an economist, but I interpret that as higher for longer,” he concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.