Close to its historical highs, how do we position ourselves in the market for the start of the week?
The most relevant data of the week and what we can project.
Good morning Crypto Nation! On this Sunday, October 20, the price of $BTC is hovering around 68,500 at the time of publishing this article.
The last time Bitcoin touched 68-69 was in July of this year. Since then, the largest asset in the crypto market began a correction process, gradually falling to 49,000. After several pushes and pullbacks, we touched 52,000 again in the first week of September.
Although it was a short time, a lot of water has passed under the bridge and many are asking, are we safe?
Well, big institutional capital seems to tell us yes.
Between China and the USA, they push the price.
The economic conditions of the two leading countries on the stock market continue to push the price into an upward rally.
With the US rate cut, the market is showing optimism and willingness to invest in high-risk assets.
The technology boom continues to permeate strongly among investors. Driven by the boom in artificial intelligence and the spectacular rise of input manufacturing companies such as NVIDIA, the S&P 500 has broken all-time highs and does not seem to have any intention of correcting yet.
In addition, Bitcoin ETFs have received huge news this week, with the approval of stock options on them. This means that not only will you be able to buy your ETF, but you will also be able to trade speculatively on the price.
Last week alone, ETFs racked up a total of $2 trillion in net inflows. What is striking is that this surge in inflows comes at a time when prices are close to all-time highs.
Could it be that institutional capital considers these prices "cheap"? Many argue that they do and that if the trend continues, we could be on the verge of a bull market.
Meanwhile, a stimulus package for the economy was announced in China.
After the panic caused by the fall of the Japanese stock market, the Asian market is beginning to show signs of strength and growth.
This is confirmed by the latest trading during Asian trading hours, where stocks have shown recovery and cryptocurrency trading closed in positive territory after trading.
Too good to be true?
We don't know what the market will do to us, but we must be alert.
We are currently at a "pivot" point for BTC.
The 68,000 to 72,000 area is a very hot zone to trade. We find billions of dollars in short positions at these highs.
If the price manages to break the zone, pushed by purchases in the Spot market together with the pressure of long positions in the futures market, the bears could be liquidated.
But there is also the possibility that they will aggressively defend the area and push the price towards the supports.
That is why we consider this week and the remainder of October to be a turning point.
Conclusions:
It seems we are finally leaving the storm behind and exiting the bear market.
This is indicated by the sentiment of the market as a whole.
Meanwhile, the total cryptocurrency capitalization is around $2.36 trillion, with a 10% increase in recent days.
The altcoin market has also recovered and is showing signs of having hit a âbottom.â
I recommend caution, as there are some twists and turns ahead. We have many areas of liquidity ahead and a huge number of new players in the market.
While I am optimistic, I would not take big risks at such a time of murky clarity. Waiting for the price to develop is a good option; in the meantime, the altcoin sector is giving us huge profits and many successful trades.
Crypto Citizen says goodbye!
Remember that you can follow me and stay up to date with the most relevant market news, technical analysis at the request of followers where currencies are analyzed looking for entry points and relevant events.
Excellent start to the week.
