Bitcoin Approaches Key Levels Amid October Volatility Potential
Bitcoin is in a crucial phase as it approaches the end of the quarter, with key technical and macro factors influencing its trajectory for October. Traders are closely watching specific price levels that could set the tone for the coming month.
Key Levels and Potential Scenarios
- Bitcoin's spot price recently faced rejection near $112,000, dipping to the low-$108,000s before rebounding.
- Nik Patel suggests that dips this week might be opportunities for long positions heading into Q4.
- The critical mid-cycle risk marker is around $99,000, with significant support at the 360-day moving average near $97,900.
- A close above $115,700 would signal strength, while a dip to $104,600 could occur on increased volatility.
Macro Factors and Market Sentiment
- The dollar may overextend but is expected to weaken later in Q4, potentially supporting Bitcoin.
- Equities might experience more volatility in October, but dips present opportunities towards year-end.
Strategic Outlook
- Patel indicates that current market volatility is setting the stage for Q4 movements.
- A drop below $99,000 on a weekly close would challenge the bullish outlook for Q4.
- The formation of an October low is anticipated between now and the weekend.
At present, Bitcoin trades at $113,248, navigating through these pivotal levels.
