- Analysts highlight stable funding rates and reduced leverage as signs of a healthier market structure for Bitcoin and potential for an upside move.
- Analysts, including Michael van de Poppe, suggest gold’s decline below $4,000 per ounce could trigger renewed capital inflows into crypto.
Following a strong Bitcoin price bounce back to $115,000 levels earlier this week, the crypto market sentiment has turned sour again.
This comes even as the FOMC meeting commences today, amid growing expectations of 25 bps Fed rate cuts. As of now, investors wait on the sidelines, waiting for a clear directional move ahead.
Bitcoin Price Remains Range Bound Amid Market Uncertainty
Crypto analyst Ali Martinez highlighted key technical levels for Bitcoin (BTC), noting that $111,160 serves as a crucial support zone. On the other hand, Martinez noted that $117,630 stands as the major resistance level that must be breached for a sustained bullish continuation.
Crypto trader Daan Crypto Trades noted that Bitcoin (BTC) market dynamics have remained largely stable throughout October, with little change in key indicators such as price, funding rates, and open interest, as reported by CNF.
According to the analyst, BTC’s price has remained flat this month despite first reaching new all-time highs before correcting by nearly 20%. Funding rates have stayed mostly neutral, consistent with levels observed over the past two to three months.
He further added that open interest has now returned to July levels, marking the only notable shift. This decline suggests reduced leverage in the market compared to August and September. The analyst describes it as a healthy development for BTC’s overall structure.
The demand for BTC as a treasury asset continues to remain robust. American Bitcoin Corp (ABTC), the Trump-backed Bitcoin mining and treasury firm, has added 1,414 BTC worth approximately $163 million to its reserves, bringing its total holdings to 3,865 BTC, valued at around $446 million.
Eric Trump has confirmed this development, stating: “And we are just getting warmed up! Incredibly excited about ABTC and what we are building.”
On the other hand, with the Gold price seeing a strong retracement, market analysts are hopeful that the capital will rotate back into BTC as the risk-on sentiment kicks in. Gold prices have dropped below $4,000 per ounce for the first time since October 13, marking a sharp reversal as investors rotate out of safe-haven assets. The decline comes amid rising interest in digital assets, with Bitcoin (BTC) showing signs of renewed bullish momentum.
Altcoins Rally To Continue From Here Onwards
Crypto analyst Michael van de Poppe said that gold’s recent pullback and consolidation phase could be a bullish signal for risk-on assets, particularly altcoins. He noted that there has been a negative correlation between the ETH/BTC ratio and gold. This means periods of weakness or sideways movement in gold often coincide with stronger performance in the crypto market.
Van de Poppe added that several altcoins are already showing early signs of strength, suggesting that the broader market could be on the verge of another rally. He reiterated his view that the current bull cycle likely has another one to two years to run.