October, a historically bullish month, saw one of the biggest crashes in history. Bitcoin (BTC) and altcoins experienced a major crash on October 11th, with Bitcoin closing the month down 3.6%, according to Coinglass data.
While hopes remain for November, known as another bullish month, Bitfinex analysts analyzed that November may not be a savior for Bitcoin either.
Bitcoin could break out of its historically strong price gains from November and instead move sideways, Bitfinex analysts said in their latest report.
At this point, Bitfinex analysts said that considering the current macroeconomic environment, the Fed’s uncertain monetary policy, and weakening investor confidence, Bitcoin is more likely to move sideways in the short term in November.
Analysts at Bitfinex stated that $116,000 is very important for Bitcoin, adding that if BTC does not rise above $116,000, even the bulls may run out of patience, and if this level is broken, it could initiate a renewed upward trend.
“Even Bitcoin bulls will become increasingly impatient if the $116,000 level cannot be recaptured.
“Long-term investors are selling, and if the price fails to decisively break out of this range, this level will become an increasing hurdle for the bulls.”
Bitfinex recently added that although the overall outlook is neutral and sideways, Bitcoin could rise again.
At this point, analysts believe that more moderate inflation data or a dovish message from the Fed could quickly shift market sentiment to positive. Similarly, news of ETF approvals or increased institutional interest could spark a new wave of optimism and bullishness in the market.
A potential improvement in global liquidity could also lead to a positive trend in Bitcoin’s price, analysts said. However, without such catalysts, Bitcoin is likely to consolidate, he said.
*This is not investment advice.