With no major short-term bullish catalysts in sight, Bitcoin price has little to no support in the event of a bearish turn.
Bitcoin (BTC) and the global cryptocurrency market capitalization have moved in tandem in recent months, as BTC leads further market momentum.
The global crypto market has been in a prolonged downtrend for over 11 months, as Bitcoin, Ethereum (ETH), and most major altcoins are undergoing a massive correction.
After the price of Bitcoin reached an all-time high of $69,000 in November 2021, the largest crypto market has fallen along with the price of BTC.
The historic pullback has hit HODLers, traders, and investors as major crypto assets continue to oscillate in the vicinity of the lower price range.
Little Chance in October of Relief for Cryptocurrencies
Bitcoin, the oldest cryptocurrency and the one with the largest market capitalization, with more than 368 billion dollars, is often called the “King of the market”, and with good reason. BTC price generally drives the largest market flow, unless you are in an alt season.
The most recent BTC price stood at $19,153.35, and it still hovers in a tight range below the $20,000 mark. With no major short-term bullish catalysts in sight, Bitcoin price has little to no support in the event of a bearish turn.
The price of BTC recently fell below a crucial wall of demand around the average price of $19,357 according to the In/Out of the Money Around Price indicator from Into The Block.
If the price of BTC continues to fall, the addresses that are now at a loss may be forced to sell, which will further push the price of Bitcoin lower.
Meanwhile, the next significant support for BTC would be at the $16,000 mark. However, a visit to that lower level could also lead to significant losses for the larger crypto market.
It is the “Bitcoin season”, for the Moment
In an altseason, investors often expect decent gains from the massive rallies that altcoins exhibit, as BTC maintains a calm but bullish tone.
In recent weeks, the market has been heavily led by BTC, and an altseason does not appear to be in the cards for crypto investors, according to the altseason index.
Additionally, with BTC’s volatility index falling to its lowest level since December 2020, the volatility that aids sudden price momentum, which often fuels short-term gains for altcoins, is also absent.
All in all, with Bitcoin ruling further market momentum as most major altcoins were highly correlated with Bitcoin price, more sell-offs could apparently await investors.
Furthermore, analysts’ Bitcoin market sell-off warnings keep popping up.
Therefore, October could play at the mercy of BTC, and with the price of Bitcoin at a crucial crossroads, there could be a cascading effect on the major cryptocurrencies.
Anyway, before making investment decisions, it is worth conducting your own research. As Joey Krug, Co-Chief Investment Officer at Pantera Capital, shares, people thinking of investing in Bitcoin should consider the following:
“You have to remember that Bitcoin could go down as much as 70%. You also have to keep in mind that it is possible for it to go up much more than that 70%. As a final tip for beginners in Bitcoin and other cryptocurrencies, related to those two points, it is best to make an investment that doesn’t make you lose sleep over every short-term price change.”
By Audy Castaneda
