Bitcoin, the leading cryptocurrency, made a strong start to October, known as a bull month, closing the week above $86,000. This was its highest closing level in the last 8 months, but BTC still couldn’t surpass the $87,000 level and retreated back below $86,000 due to selling pressure.
At this point, the market believes that economic data from the US is influencing the rise in Bitcoin prices.
The fact that Personal Consumption Expenditures (PCE) and non-farm payrolls data, which the Fed closely monitors in its monetary policy decisions, came in below expectations was positively received by the market, and also lowered expectations for a further Fed interest rate hike in October.
While the market awaits the Fed minutes and the October interest rate decision, an updated assessment has come from the analysis firm QCP Capital.
At this point, QCP stated that these developments have lowered the probability of an interest rate hike in October to 22 percent.
What are the Critical Levels in Bitcoin and Ethereum?
The analysis firm stated that the upward trend is also dominant in the crypto market, and that Bitcoin needs to remain above $87,200 to confirm further gains.
QCP noted that buying interest continues at the lows, with Ethereum trading in the $2,650-$2,800 range, around $2,725, exhibiting a cautious upward trend.
Which Developments Will Be Followed?
QCP also listed the most important events of the week. QCP stated that the first significant development is the FOMC minutes, to be released on October 7th. Furthermore, QCP noted that TOKEN2049, to be held in Singapore on October 8-9, and the US CPI data, to be released on October 14th, will also be closely watched, as these developments could increase market volatility.
*This is not investment advice.
