Disclaimer: CoinMarketCap cryptocurrency community price estimation is based solely on the votes of its users. Estimates do not guarantee month-end prices.
Bitcoin (BTC) hit its highest level in more than a week on Tuesday, September 27, when it broke above $20,000. Despite this, the cryptocurrency is still struggling to break out of its tight trading range.
As a result, several traders and investors are now focusing on the next crypto price target by October 31, given the volatility encountered in the crypto market.
In particular, the cryptocurrency community at CoinMarketCap predicts that the value of Bitcoin will increase by 13.18% from its current level, reaching a median price of $22,857 by the end of October 2022, an increase of over $2,661.
According to crypto trading Michaël van de Poppe, the breakout consisted of a ton of Bitcoin spot volume. He also has suggested that it is a good idea to potentially long Bitcoin and short the dollar and that the flagship digital asset could move near the region that the crypto community had suggested for late October.
“It depends on the indices today, but it looks like we can look to $23,000 for some relief, at least. BTC long time. DXY short time. Probably that kind of time frame.
He added:
“Upside: -$20.7,000 – $22.9,000 Downside: –$20,000 – $19.3 – $19.5,000. These are all levels I would look for for job applications. »
Bitcoin price fluctuation
Since mid-June, the Bitcoin price has fluctuated between $18,000 and $25,000. This comes after a crash that wiped around $2 trillion in value from the entire cryptocurrency market since hitting its all-time high in November.
This market drop was fueled by a wave of bankruptcies and insolvency issues that rippled through the cryptocurrency industry. Interest rate hikes by central banks aimed at managing unchecked inflation also contributed to this market decline.
Interestingly, Bitcoin’s recent rally, which began on Monday, September 26, occurred despite a decline in US equities, with the S&P 500 ending at its lowest level since 2022. The price of equity futures has increased on September 27. are indications that the link between cryptocurrencies and stocks could be starting to break.
Investors are watching DXY closely
Meanwhile, investors are watching the value of the US dollar carefully. This year, the dollar index, which compares the value of the US dollar to that of a group of other currencies, is up more than 18%.
Because the price of Bitcoin swings in the opposite direction against the dollar, a strong dollar is bad for the cryptocurrency. However, with some analysts such as Poppe suggesting that the Dollar Index may be nearing its peak, this could indicate a possible bottom for Bitcoin, which could be an explanation for Bitcoin’s recent price surge.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.