BTC to USD price started the week in the red as the escalating tensions in the Middle East jolted global financial markets. At press time, the Bitcoin price was down 0.93% from last week’s close. The price seems to have been stuck within a very narrow range for the past two months.
On Monday, altcoins also faced an increase in selling pressure due to a pullback in the BTC price. This comes as no surprise, as most altcoins usually follow the price action of BTC. Investors seem to be derisking their portfolios by taking losses on their altcoin positions. Many altcoins are trading close to their yearly lows.
Even though Bitcoin has remained sideways since August 2023, the BTC dominance (BTC.D) is still increasing. In fact, BTC.D has surged to 51.1%, which is the highest level since July 2023. This shows that the money is constantly flowing out of the altcoins to the biggest cryptocurrency in search of safety.
However, there is no injection of fresh capital from the outside, which has resulted in a very choppy price action in most digital assets. While a lot of speculations are being made about the approval of a spot Bitcoin ETF in the coming months, Bitcoin price is yet to react to these bullish expectations.
Let’s analyze the BTC price chart on a 4H timeframe. It can be seen that the price has been struggling to break out of the $25,300-$28,200 trading range since a crash in August. This range shows a consolidation, which may result in a major breakout soon.
I expect Bitcoin price prediction to turn bearish in case of a breakdown below the range lows around $25,000. A strong selling pressure may take the price toward $20,000, which is a major psychological level. This level may result in extreme fear in the market while also providing a good buying opportunity before next year’s Bitcoin halving.
This post was last modified on Oct 09, 2023, 11:26 BST 11:26