Bitcoin has reached highs due to safe haven bets, increased exchange sales funds, and rising index of fear and greed.
summary
- Bitcoin’s latest surge highlights a new wave of investor optimism driven by improving market sentiment, expectations for Federal Reserve rate cuts, and attachment of influxes into spot ETFs.
- Due to macroeconomic tailwinds, seasonal strength, and risk appetite convergence, BTC placed BTC to raise another potential leg. It shows that the world’s largest cryptocurrency could enter a new phase of institution-driven momentum.
Crypto’s fear and greedy index jumps, Bitcoin price rises
Bitcoin (BTC) prices continued to have a strong rally as investors embraced risk-on sentiment. This emotion can be seen in rising code horror and greedy indicators moving from 39 fear zones in September and approaching 60 greedy zones.
Bitcoin and other cryptocurrencies usually jump whenever the index is uptrend. Profits accelerate with each move into an extreme greed zone.
BTC prices are also rising sharply as investors accept it as a safe asset like gold. One of the evidence of this is that as government shutdowns occur, influx into spot BTC ETFSHAVE continues to rise.
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Sosovalue data shows that these ETFs added more than $3.2 billion in assets, bringing total inflows to more than $60 billion. BlackRock’s IBIT has over $96 billion in assets and is currently in the top 20 largest ETFs in the world.
Bitcoin prices also jumped to record highs as investors predicted the Federal Reserve would cut interest rates this month. We have already reduced our interest rate by 0.25%, and have moved our benchmark rate from 4.0% to 4.25%.
The possibility of more interest rate cuts has increased after the ADP and the Bureau of Labor Statistics announced weak employment numbers. BLS reports show that the number of unemployed Americans is higher than the number of vacant rooms.
Another report by the ADP showed that the economy lost 36,000 jobs in September after dropping over 3,000 a month ago. These numbers mean the labor market is getting worse, which will put pressure on the Fed to act.
Seasonality also plays a role in the ongoing Bitcoin Price Rally. Historically, Bitcoin has been doing well in October and the fourth quarter.
BTC price technology analysis
Bitcoin Price Chart | Source: crypto.news
The weekly chart shows that BTC prices have become a strong bull run this year. Now it jumps to record highs above $125,500, and is away from the top of the bullish flag pattern.
Bitcoin prices also move to the powerful Pivot Reverse Points of the Murrey Math Lines tool, and above all, remain average.
So the most likely scenario is where the coin continues to rise as the Bulls target the ultimate resistance for $150,000. Moves beyond that level point to more profits at an extreme overshoot level at $175,000.
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