Bitcoin returned to a level above $112,000 on Monday after dropping to a three-week low of under $109,000 last week. The recovery was due to massive selling pressure, which wiped out over $1.5 billion in long positions in a single trading session.
According to blockchain data, big investors, often known as whales, hoarded Bitcoin throughout the correction. This hoarding supported market stabilization following an unstable time frame, which was also accompanied by the expiry of the crypto options of $22 billion value. Bitcoin and altcoins were placed under pressure due to the expiry of their options, which also marked the end of the third quarter.
The newfound strength enabled Bitcoin to bridge a Chicago Mercantile Exchange (CME) spread that had previously existed in September between $107,000 and $116,700. This gap allowed the futures and spot markets to regain consistency, a phenomenon that analysts of markets usually consider to be conducive to price stability. The significant support is now at $112,000, and the critical resistance is at $124,000.
Jordi Visser, a market analyst, likened Bitcoin's future trajectory to that of Nvidia, a top chipmaker. Nvidia has increased by over 1000% since the end of 2022, but has had five 20% corrections in the same time interval. Visser claimed that Bitcoin might be a similar case, with short spikes of decline and then new all-time highs recorded.
Another reason Visser associated Bitcoin's presence with the expanding artificial intelligence economy is that with increased AI adoption, traditional organizations might become of less value as investors continue to consider Bitcoin a store of value. Such a perspective justifies the claim that Bitcoin is one of the broader digital asset trends related to innovation.
Other analysts are torn between the short-term and long-term perspectives. Some forecast that Bitcoin could be valued between $140,000 and $165,000 in the fourth quarter. Others warn that further selling or a long bear market may bring the price nearer to $60,000.
Also Read: Bitcoin News Today: BTC Price Faces Heavy Pressure as Bears Eye Key $107K–$104K Support Zone
Macroeconomic factors still influence the crypto market. According to futures pricing, the US Federal Reserve is 91% likely to reduce the Federal Funds rate in October, which would help provide liquidity. However, continuing political unrest in Washington about government funding has contributed to global financial market apprehension.
Past data provides some additional background. October is one of the most successful months in Bitcoin's history, as the company has gained in 10 out of the past 12 years. This phenomenon is frequently referred to as Uptober and contributes to a positive outlook for a steady fourth quarter. However, commentators caution that profit-taking, regulatory issues, and geopolitical uncertainties may dampen gains.
In the meantime, the fact that Bitcoin can maintain above $112,000 levels is also vital. A successful hold can enable the price to probe resistance at the level of $124,000, whereas failure can turn sentiment and reinstitute the downward momentum.