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October continues to unfold and a renewed sense of weakness has once again become evident across the cryptocurrency market. Over recent sessions, meaningful recoveries have been scarce and the sector's leading assets have started to move away from their recent highs
October continues to unfold, and weakness has once again become evident across the cryptocurrency market. Over recent sessions, the sector's ability to recover demand has remained limited, reflecting a loss of appetite for crypto assets in the short term.
Markets went from risk off to risk on yesterday afternoon and we have since kicked on with some follow-up buying of stocks, gold and silver, while the dollar has also shown signs of weakness. Risk appetite turned positive after bond yields and oil prices both retreated yesterday.
Bitcoin has weathered the surge in the US dollar and Treasury yields remarkably well, but realised volatility has fallen towards historical lows. A study of nearly a decade of price history suggests larger swings may be coming.
Bitcoin has retained strength through the jump in yields even as gold has melted down, but now BTC/USD faces an important test as price has reverted to a significant support level.
Recent trading sessions have not been particularly supportive of Bitcoin's short-term momentum. Instead, the market has begun to display an increasingly evident neutral dynamic, with price action struggling to establish a clear direction.
The first week of October is underway and, for now, the cryptocurrency market continues to display a mixed performance. Recent gains have been considerably smaller than those observed in previous weeks, while price action has struggled to generate moves strong enough to establish a clear direction across the market.
The beginning of October has been marked by a persistent lack of direction across the cryptocurrency market. This dynamic has remained in place even after the release of U.S. employment data, which so far has not been enough to reduce the appeal of alternative markets competing with cryptocurrencies for investor attention in the short term.
Recent trading sessions have not been particularly supportive of a clear directional move in Bitcoin. This can be seen in the behavior of the price over the last four sessions, where fluctuations have remained close to 1.00% without establishing a consistent trend. As a result, a growing sense of neutrality is beginning to emerge around BTC.
With only a few days left in September, the cryptocurrency market continues to show a constructive short-term outlook. The latest trading week has delivered meaningful gains across most major digital assets and, broadly speaking, the bullish bias remains the dominant force within the market.
With September nearing its end, the cryptocurrency market is beginning to show greater caution heading into the close of the week. This comes after a strong start, when prices moved sharply higher on the back of short-covering activity and renewed optimism surrounding potential regulatory developments for the crypto industry.
The outlook for Bitcoin in Q4 is turning cautiously optimistic on the back of renewed ETF purchases, compelling valuations, and an improvement in buy-and-hold behavior among investors - see the full analysis!
Surging yields and higher rate hike odds present a new wrinkle for markets, and this has softened the trend in gold. Bitcoin, meanwhile, has retained strong bullish structure and continues to show a brighter backdrop than XAU/USD.
