THE DOWNTREND OF BITCOIN COULD FURTHER WORSEN
In terms of how the prices of Bitcoin and Ethereum will look in October, this is unquestionably not the October we had hoped for. The cryptocurrency market has remained sideways. The market is still impacted by the macro economy. Similar to previous week's report, the consumer price index decreased to 8.2%. Even though the consumer price index did not decline significantly, inflation did decline steadily. The federal reserve is raising rates because inflation is still high, which is bad for the cryptocurrency market.
We must exercise caution because one of the key reasons influencing the market is the rising interest rate. I don't believe the Fed will halt anytime soon given the inflation rate right now. All central banks are currently irrelevant; what matters is what the federal reserve does. There are some energy-related problems right now. Last week, a sizable strike occurred at the French oil refinery. There are many bad things happening, and the cryptocurrency market has a lot to atone for. If the issue only related to energy supply, we might be able to find a solution, but instead we are seeing inflation, interest rate increases, and a host of other awful things.
The market has been going sideways for months, which is why the bollinger band signal has been tightening up significantly on Bitcoin. On Twitter, Root stated that they are approaching and staying above the 21,700 dollar short-term holding cost basis since it is the primary indicator of a price recovery. The $21,700 level that Bitcoin hasn't hit in a very long time as compared to the 100-day exponential moving average. In both the bull market and the bear market, our definition of Bitcoin is defined by the 50-day exponential moving average.
Due to the lack of market volatility, there is still a lot of fear present in the market, which is currently uninteresting. They continue purchasing Bitcoin despite the positive news that is released every day, but there is still a lot of uncertainty in the market. There is a very real chance that Bitcoin will decline considerably further. If the price of Bitcoins continues to decline, we shouldn't be shocked if the market drops to between $15,000 and $16,000.