The breaking through of a long-term trend-line barrier was applauded by bitcoin bulls, but has much truly changed? The value of Bitcoin (BTC) surpassed a lengthy falling linear trend that dates back to either April 22 or November 15, based on one’s preferred method of technical indicators, on October 4 and 5. This action sent the price beyond the $20k level.
Since the value is trading outside the falling trendline, some investors may be getting a little joyous, but also have any pertinent measurements or macro indicators altered significantly enough to warrant a positive vantage point for the value of bitcoin?
In truth, the trendline was simply “reinforced” by Bitcoin price, which had been trading evenly for the previous 16 weeks and had been ranging between eighteen thousand and five hundred and twenty-four thousand five hundred.
Are The Bulls Going To Charge At Bitcoin Market Now?
The direction in which Bitcoin and Ether move tends to follow that of stocks, and Bitcoin’s rise to $20,365 on October 4 coincides with increases of 2% to 3% inside the Dow, S&P 500, and Nasdaq.
Despite the “all-in surge” on October 4, which occurred in the stock and cryptocurrency markets, wider worries about global rampant inflation, increasing interest rates, as well as other economic worries continue to dampen investors’ enthusiasm for trading, as seen by the Q3 results.
On October 5, OPEC declared intentions to reduce oil output by 2 mn barrels each day, or around 2% of the world’s total oil consumption. Oil stocks rose after the news, however, the White House is actually concerned that perhaps the cuts will make it more difficult for the Federal Reserve to battle volatility and may even lead to higher gas prices.
In general, investment banks like Citi and Goldman anticipate that stock market volatility will persist. As a result, both of these firms have lowered their end-of-year projections again for S&P 500, and analysts continue to forecast a negative year in 2023.
