As we reach mid-October, Bitcoin’s price has yet to showcase its anticipated ‘Uptober’ potential, having only registered a $3.5K increase since September. Furthermore, Bitcoin’s surge is currently encountering short-term selling pressure, plunging the bullish hope of reaching a $30K milestone. Consequently, the upcoming week may witness continued low volatility as buyer confidence in Bitcoin declines.
Bitcoin Faces Low Holding Confidence
In the 2023 price cycle, Bitcoin has hit a historical low in short-term holdings, notably due to bearish performance in Q2 and Q3. Despite a decrease in supply from short-term holders, selling pressure from long-term holders hasn’t eased.
Unlike previous cycles, the reduced supply among short-term holders and declined confidence from new investors have not brought a wealth transfer to them or encouraged longer-term holding behaviors. As a result, there’s increasing pressure from STHs during price rallies as investors don’t want to hold Bitcoin for a longer period.
However, some analysts have suggested that the recent price activity in the Bitcoin markets is neither particularly bullish nor bearish, indicating a balance between buyers and sellers instead. Hence, Bitcoin will continue to face this range-bound trading next week until some big news happens.
However, Bitcoin’s long-term momentum appears positive as a U.S. Bitcoin ETF becomes increasingly plausible. Recently, the US SEC said it won’t contest a court’s reversal of its decision against allowing Grayscale to convert its bitcoin trust into an ETF, potentially paving the way for the U.S.’s first Bitcoin ETF.
Traders are keenly anticipating the U.S. approval of a spot Bitcoin ETF, foreseeing that its introduction could unleash wider institutional demand and attract a surge of fresh capital. With the potential introduction of Bitcoin ETFs by January 2024 and the BTC halving event just six months away, big momentum for Bitcoin is on the horizon.
What’s Next For BTC Price?
Bitcoin price recently broke past $27K and surged above 20-day EMA; however, it failed to defend increasing selling pressure near that level. As a result, the price is now back at its balanced zone near $26.8K. As of writing, BTC price is trading at $26,927, surging over 0.9% from yesterday’s rate.
While bulls are defending a drop below $26,500, sellers are also preventing a surge above $28K, creating a consolidation for BTC price. Bears might aim to eliminate bullish hope by plunging the price toward the monthly support of $26K. However, bulls will strongly make aggressive purchases near this level.
A surge above the 50-day EMA would signal initial strength, potentially sending the price toward the critical resistance at $28,600. A closure above this level might indicate the commencement of a short-term upward movement toward $30K.
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