Bitcoin is riding a wave of psychological momentum, making a price correction unlikely in the near future. However, a change is possible as fundamentals take precedence, potentially leading to widespread panic.
Fears of an overheating market are growing as Bitcoin surged above $68,000, snapping a four-month losing streak. The surge came despite a sharp decline in the RSI.
Psychology on the basis of
It must be remembered that Bitcoinâs price is heavily influenced by macroeconomic factors. A series of events, including the post-halving rally, the upcoming election cycle, the âUptoberâ craze, and the Fedâs rate cut, have all combined to push Bitcoin to $68,000 in just ten days without any significant pullback.
While technical indicators suggest a short-term reversal, these macro factors could reinforce the belief of large holders that this is a key buying zone. This belief is likely to attract more buyers into the market, fueled by increased FOMO as market sentiment strengthens.
Bustling Market and Whale Activity
Supporting this theory is the surge in whale activity. Addresses holding 1Kâ10K BTC have hit a three-month high. The latest major surge coincided with a 5% daily price increase, pushing Bitcoin above $66K.
Whales have played a key role in countering the bearish pressure. Their activity since early October has reinforced the initial hypothesis that macro factors are attracting large players.
Traditionally, the halving year has been a reliable indicator of when a bull run is likely to occur. Spikes in the 30-day average demand have always coincided with cuts in Bitcoin supply during halving events.
Even if the fundamentals donât play out immediately, widespread anticipation alone could trigger a breakout. If whale activity continues this bullish trend, Bitcoin could potentially hit its all-time high of $73,000 before the end of Q4.
