Bitcoin slides as crypto market awaits today's US inflation data

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BITCOIN and the broader crypto market are stuck in a holding pattern, with the market leader hovering between $60,000 and $64,500 for several weeks now.

This continued sideways action has left traders wondering when the often-hyped “Uptober” will arrive – a term coined to reflect Bitcoin’s historical tendency for strong performance in October and November.

As of this morning, Bitcoin is trading just under $61,000, down 1.7% overnight, with Ethereum following a similar path, hovering around $2,400.

Most of the altcoin market is in the red, with notable losses in some markets. Market sentiment has also taken a hit, with the Fear and Greed Index sliding back into 'Fear' territory. Despite the current uncertainty, Glassnode’s recent newsletter offered some perspective, noting that “bull market drawdowns remain relatively shallow, but in line with historical bull market uptrends”.

Some market commentators say signals of Chinese authorities potentially selling off cryptocurrency seized from a fraudulent crypto scheme in 2020 may be contributing to the negative price movement. Investors are also eagerly awaiting today’s release of September inflation data from the US, which could give clues about the Federal Reserve’s next move on interest rates.

With these developments in focus, the question remains whether Bitcoin will break out of its current range or continue to consolidate as it heads into November.

In the Markets

Total crypto market cap

$2.13 trillion (-1.63%)

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What Bitcoin did yesterday

Daily high $62,537 |  Daily low $60,355

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Bitcoin market capitalisation

$1.2 trillion (57.86% of market)

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Bitcoin 24-hour trading volume

$27.5 billion (+3.02%)

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SP500

+0.71%

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Fear and Greed Index

39 (Fear) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

41

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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