Here Are 5 Things That Will Impact Bitcoin, SHIB and Altcoins This Week!

The trading range for Bitcoin remains stable. Meanwhile, she starts the last week of October in average mood. But the longer the status quo lasts, the more convinced commentators are that a major trend change is coming. So, what are the five things to keep in mind while tracking Bitcoin price action this week? Here are the details… Bitcoin (BTC) price and detailed market data from hereyou can see.

Highest weekly close for Bitcoin since early September

Bitcoin presented an interesting price behavior to its weekly close on October 23. BTC/USD saw its biggest “green” hourly candle a few days before it peaked at $19,700. It has managed to rise around $19,580 for the first time since the beginning of September, becoming the highest level in Bitcoin. For Michaël van de Poppe, founder and CEO of Eight trading firm, it’s time to say goodbye to BTC, which is definitely moving in a range. The analyst used the following words:

The week ahead is a big week of all events, making it almost inevitable for us to break out of range. I’m watching this last stand. It needs to be broken, then the party can begin.

The order book data also told a parable. CryptoQuant analyst Maartunn analyzed trader behavior on Binance. She pointed out that the whales draw liquidity from the designated price corridor. She pointed out that the whales are selling and the liquidity in the range is decreasing. Material Indicators, which monitors the liquidity changes in their ledgers, also noted that Bitcoin’s resistance level, corresponding to its all-time high in 2017, has softened. Well-known trader and analyst Jackis made the assumption of a “crazy” November for Bitcoin. He conveyed that after a long horizontal movement, the time for change would always come.

Fed and ECB prepare for rate hike decision

FED and ECB are behind Van de Poppe’s promise of a “big” week in terms of macroeconomic events. On October 28, the United States Personal Consumption Expenditure (PCE) September Index will be released. While classically not as effective as the Consumer Price Index (CPI) for crypto markets, the PCE is still at a critical point this time around. The next week, the Fed; He will hold a meeting where he will decide on interest rate increases according to certain data, including PCE and CPI.

The market is currently mostly expecting another 75 basis points increase. However, last week, rumors emerged that the Fed’s stance would be softened. It is thought that a random policy relaxation will provide comfort for the risky asset category, which includes cryptocurrencies. Developer James Bull states that the average BTC bear market lasted 12.5 months and we are now in the 11th month. He thinks this timeline could go in parallel, as a result of rumors that the Fed is considering stopping the rise in interest rates.

Outlining expectations from the Fed in the middle, Charlie Bilello, founder and CEO of Compound Capital Advisors, confirmed that 75 basis points will not appear again after the beginning of November. According to the expert, interest rate cuts will start in December 2023 – will continue in 2024. Beyond the US, on October 27 came news of a press conference from the European Central Bank (ECB). Christine Lagarde, Leader of the ECB, will deliver a speech. The eurozone is currently dealing with record inflation of over 20 percent.

Latest situations in the Bitcoin network

Coming back to Bitcoin, there is a feeling of unease over the network fundamentals and the health of the mining department. According to the information, the hashrate is at the highest levels of all time. But growth is likely unsustainable. Also, there will be a cost. Despite the overall decline in spot price action, miners are allocating more and more computing power to Blockchain. This means that actually weak profit margins are shrinking further and smaller miners are at risk of abandoning ship due to lost financial incentives.

It can be assumed that the asset, whose hash rate has increased, still has enough capital to make a profit despite the current state of the network. “The Bitcoin hashrate is bound to fluctuate,” William Clemente, co-founder of research firm Reflexivity Research, said over the weekend. “I wonder who thinks mining is advantageous as the BTC price drops 70 percent,” he said.

Then, commentator Steve Barbour came to an unusual conclusion. “Friends, Russia. Russia is where the hashrate is going,” he said. “Manufacturers have admitted that they have recently sold more ASICs to Russia than to the United States,” he added. According to MiningPoolStats, the hashrate is currently over 270 exahash per second (EH/s), while BTC.com provides an assumption of 259 EH/s. Thanks to the added hashrate, the difficulty increased another 3.44 percent on October 24 to reach an all-time high of 36.84 trillion.

Is the bear market over for investors?

The miners may not have discovered the world of capitulation now. However, according to one analysis, capitulations have already occurred for the average Bitcoin hodler. Judging by the data covering the BTC supply, trading resource Game of Trades concluded that the bear market pain has already entered. According to data that does not take into account lost or long-term coins, BTC’s 30-day moving average is now at almost all-time highs.

A chart from on-chain analytics firm Glassnode put the tally of losses above 8 million BTC. Provisions emphasized that the number is lower when circulating supply is used. Game of Trades acknowledged the June low of $17,600 to be a “main capitulation event.” Glassnode also confirms that the measure of BTC supply, which has been dormant for at least five years now, is higher than ever at 25.47%.

“Uptober” did not happen

There is little interest in the “Uptober”, which did not happen compared to October 2021. Koindeks.com As we have also reported, Uptober points out that historically, the BTC price rose in October. At current prices, BTC/USD is just 0.36% away from the start of the month. This shows how volatile Bitcoin is. Data from the Coinglass information source shows October 2022 to be the flattest October by percentage. He states that he is in the shadow of last year, which has a 40 percent benefit.

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