Bitcoin

Top 5 Bitcoin Insights to Watch This Week

1) Bitcoin climbs back, testing $69,000

Bitcoin made a strong comeback, closing the week at over $69,000, the highest since early June, according to TradingView.

Traders now consider short-term outcomes like a pullback before more upward movement. CrypNuevo, a trader on X, pointed out a significant liquidation level at $69.3K, which could attract a price spike.

However, CrypNuevo warned that the 50-period EMA, currently at $66,888, might get retested. Holding this level could signal a breakout and further gains. Analyst Daan Crypto Trades emphasized Bitcoin’s role in leading the market and noted $70K as a key level.

2) Macro factors heat up as US election approaches

In the lead-up to the US Presidential Election, key economic events are making waves in crypto markets. The week’s focus will be on unemployment claims, which follow the Federal Reserve’s Beige Book update.

Recent inflation trends and stock rallies have defied rising inflation signals. The Kobeissi Letter highlighted how “supercore inflation” is rebounding, questioning whether a recent 50 basis point rate cut by the Fed was needed.

Upcoming earnings reports and the election are set to influence the markets. With the next Fed meeting on Nov. 7, just two days after the election, the odds of a rate cut sit at over 90%. Despite this, crypto assets have rallied, signaling strong market confidence.

3) Debate over Bitcoin’s price breakout

Bitcoin’s recent price surge has placed seven months of action in the spotlight. Since March’s all-time high, BTC has been in a downward channel, seeing lower highs and lows. But now, analysts are debating whether it’s broken out.

Rekt Capital, a prominent trader, believes $70,000 is a realistic target. However, veteran trader Peter Brandt suggested that the downtrend might not be fully over, pointing to an inverted expanding triangle. Liquidity data shows resistance just above $70K, with further obstacles near $72K.

4) Rising leverage sparks concern amid record open interest

Bitcoin’s rally to $69,000 has seen a sharp increase in open interest, raising caution among some analysts. CryptoQuant warned that leverage is increasing dangerously, potentially exposing traders to heightened risks in a volatile market.

CrazzyBlockk from CryptoQuant noted that stablecoins are being increasingly used as collateral in derivative trading, further amplifying risks. Meanwhile, Capriole Investments’ Bitcoin Heater tool indicated that the market is overheated, hinting at a potential pullback, especially with high leverage.

5) Bitcoin retail interest remains muted

Despite Bitcoin nearing $69,000, mainstream interest remains low. Google Trends data reveals that searches for “Bitcoin” are at their lowest in a year, scoring just 22 out of 100.