"There is no positive signal." About bitcoin in a week
Experts told what dynamics to expect from the market of digital currencies in the coming week
As of October 9 10:35 NY time, bitcoin costs $19.4 thousand, for the last week the cryptocurrency has risen by 0.6%. Experts have analyzed the situation in the market and told how it will change in the short term.
"Bitcoin did not show the lowest marks."
Head of the analytical department of AMarkets
Bitcoin and the entire crypto market have long been moving in common dynamics with the U.S. stock market, for which important data next week will be information on inflation (in annual terms) and further statements in this regard by representatives of the Fed.
Since inflation has long been creating all the conditions for the Fed's rate hike, no one expects the regulator to soften its rhetoric after the September data - further rate hikes are projected, which is expected to have a negative impact on stock prices and cryptocurrencies. Most likely, inflation will continue to rise or be higher than investors' expectations - a signal for another Fed rate hike.
If such data turns out to be the case, bitcoin may start to decline again. While the value of the asset is constantly in the range of $18-21 thousand, it will go down (probably, to the level of $16-18 thousand) if we get negative signals.
There are no positive signals for the crypto market as a whole and for the world economy entering recession right now. The general opinion is that the crypto market can recover in a year and a half or three years - a period during which stock markets, which have already lost more than 20%, usually recover as well. But so far the bottom has not passed, which means bitcoin has also not shown its lowest marks.
"Sentiment is still looking down."
Bitcoin can't decide on resistance and support levels by any means. However, I remind you that we are still in a bearish stage in the medium term, and market expectations and sentiment are still looking down.
In my opinion, bitcoin could show $23-24k in the very near future. But that's not to say it won't go where it needs to go, having tested support levels around $14-15k within a month or two. So I would not get too much complacent on that topic and wait for the renewal of the minimums to proceed.