Bitcoin Starts October Off With a Stable Outlook

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Bitcoin Starts October Off With a Stable Outlook

Bitcoin Starts October Off With a Stable Outlook | Cryptocurrency MarketsThe most valuable cryptocurrency in the market has been shedding its volatile past and is now settling into a more stable exchange pattern. On October 8, Bitcoin trading volume was steady and its exchange rate held between $4,600 and $4,650; this trading range is within the technical analysis that suggests a strong support level.

In recent days, Bitcoin has traded as high as $6,700 while tracing back as low as $6,350; however, the swings have not unfolded as quickly as they had been a few months ago. A substantial amount of day trading is still taking place among investors who follow the hourly charts, but daily volumes also show quite a few buy and hold orders presumably placed by more bullish traders seeking to capitalize on a potential rally between now and the end of the year.

Trends in Bitcoin Investments

Technical traders are closely following Bitcoin’s relative strength indicator, which is currently at 50 percent. Should more buyers place orders at current levels, a path towards $6,800 will be more feasible, thus paving the way for a return to $7,000. Once investors see Bitcoin trading above $7,000, overall market sentiment will favor rally conditions towards the highly anticipated $10,000 exchange rate.

While many analysts strongly believe that Bitcoin will reach $10,000 before the end of 2018, there is an undeniable feeling of apathy among seasoned traders who were spoiled by the incredibly bullish activity of last year. Moving averages are not fluctuating as quickly as they did in 2017, and this is part of the aversion to volatility that many investors have developed this year. To a great extent, the reduction in volatility has been welcomed by institutional investors who have chosen to remain on the sidelines.

Investors Watch Banks & Hedge Funds in the Bitcoin Market

Everyone who participates in the Bitcoin market is waiting on the big money from investment banking firms and hedge funds, but these major investors are not likely to jump in at a time of high volatility because they have a lot more to lose. Wall Street investors will not enter a market that thrives solely on technical analysis, and Bitcoin has been lacking fundamentals this year; on the other hand, the ongoing adoption of this digital currency in countries where fiat money has been devalued is attracting interest.

Argentina, Turkey, Venezuela, and Zimbabwe are the countries where merchants and consumers have been adopting Bitcoin at a faster rate; these nations are emerging markets that have seen their sovereign currencies plummet because of political instability, corruption, and fiscal mismanagement. Should Bitcoin play a stronger role in these troubled economies, Wall Street investors will certainly notice.

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