Bitcoin broke back above the $60,000 levels and records moderate profits in the past day. The benchmark crypto trades at $61,483, at the time of writing, with 4% profits in the daily chart and a 7% loss in the weekly.
BTC with moderate profits in the daily chart. Source:
Bitcoin has slowed down from its rally after it was rejected at the high of its current levels. As NewsBTC has been recording since BTC’s price started turning to the upside, the rally has been driven by institutions increasing their bet on the cryptocurrency as its ETF was rollout in the U.S.
The upward trend brought a lot of leverage to the Bitcoin-based derivatives as speculators and short-term investors tried to ride the new bullish momentum. However, more leverage implies more volatility, and it can turn an upward trend fragile and susceptible to sudden moves.
In that sense, as Bitcoin scored a new all-time high above $67,000, long-term holders started taking profits. This brought BTC’s price back to the high at $50,000 and a display of low volatility with mostly sideways movement in recent days.
Bitcoin’s move to the downside has left market sentiment intact, as QCP Capital Capital claimed in a recent analysis. The firm believes BTC’s price is “taking a breather” after a run towards uncharted territory.
The general sentiment in the market remains bullish despite the recent dip and retest of critical support at $58,000. QCP Capital :
Despite this quick dip from the highs, the market feels relatively calm and perhaps even slightly optimistic that this is just a dip before a larger rally into year-end.
This can be better visualized on the Bitcoin Options market, frequently used by investors to front-run or hedge against the potential future downside. As seen in the chart below, and as explained by QCP Capital, the market remains optimistic with “risk reversals still skewed to the call side”.
Source: Skew via Twitter
QCP Capital expected Bitcoin to react with short-term bearish price action and sideways movement, but now they are reducing their BTC shorts with the potential to turn neutral on the asset.
The firm added that funding in perpetual futures contracts is flat. The cool-off has spread to other sectors in the market, the firm said:
October forwards were trading at over 30% annualized and are about to settle. November futures were trading around 25% and have come down below 15%.
However, this could be bad news for altcoins as Bitcoin could resume its rise in market dominance. Thus, many could underperform while BTC’s price re-enters price discovery.
A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.
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