How Will Bitcoin (BTC) Perform in November After October's Disappointment? Will the Expected Rally Happen? Bitfinex Analysts Explain!
Bitcoin experienced a significant crash in October, closing the month down 3.6%. Analysts from Bitfinex predict that November, traditionally a bullish month, may not see significant gains either. Current macroeconomic factors, uncertain Federal Reserve policies, and declining investor confidence point to Bitcoin likely moving sideways in the short term. Analysts emphasize that reclaiming $116,000 is crucial for Bitcoin to reignite bullish momentum. Positive catalysts like moderate inflation data, dovish Fed signals, ETF approvals, or increased institutional interest could spark optimism and drive price recovery, but without such triggers, Bitcoin is expected to consolidate.
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October: A Historically Bullish Month with a Major Crash
October, often known as a historically bullish month, witnessed one of the largest crashes in Bitcoin's history. On October 11th, both Bitcoin (BTC) and altcoins experienced a significant crash, with Bitcoin closing the month down 3.6%, according to data from Coinglass.
Bitfinex's November Outlook: No Guarantee of Recovery
While November is similarly regarded as a bullish month, Bitfinex analysts suggested that it may not serve as a savior for Bitcoin. Their latest report hinted that Bitcoin could deviate from its historically strong November price gains and instead move sideways.
They attributed this trend to factors such as the current macroeconomic environment, the Federal Reserve's uncertain monetary policy, and weakening investor confidence. These conditions make it more likely for Bitcoin to trade sideways in the short term.
The Critical $116,000 Level for Bitcoin
Bitfinex analysts emphasized the importance of the $116,000 level for Bitcoin. They warned that if Bitcoin fails to rise above this critical threshold, even the most bullish investors might lose patience. On the other hand, breaking this level could trigger a renewed upward trend in Bitcoin's price.
They further elaborated: "Long-term investors are selling, and if the price fails to decisively break out of this range, this level will become an increasing hurdle for the bulls."
Potential Catalysts for a Bitcoin Recovery
Despite a generally neutral and sideways outlook, Bitfinex analysts indicated that Bitcoin could experience a rise if specific catalysts emerge. For instance,
- Moderate inflation data or
- A dovish policy shift from the Federal Reserve
Analysts also noted that news regarding ETF approvals or increased institutional interest could spark renewed optimism and bullish momentum in the market.
Impact of Global Liquidity
Additionally, analysts highlighted that improvements in global liquidity might lead to a positive trend in Bitcoin's price. However, in the absence of such catalysts, Bitcoin is likely to remain consolidated in the near term.
Disclaimer
This is not investment advice.