Bitcoin traded at the range of $58,946 to $64,478 during the week that is ending, demonstrating high volatility amid various economic and geopolitical factors. Since the beginning of the week, Bitcoin has risen by 0.49% to $63,127, while Ethereum (ETH) has grown by 0.77% to $2,458. Recall that the week began with a slight decline in the BTC/USDT pair. Investors were expecting important statistics, in particular, the consumer price index (CPI) and producer price index (PPI) for September. A strong labor market report published on October 11 reduced the likelihood that the Federal Reserve will cut the key interest rate by 50 basis points at the meeting on November 7.
Bitcoin experienced significant pressure in the middle of the week. The US SEC has charged three market makers with wash trading and market manipulation. In addition, the published data on inflation in the US for September exceeded analysts’ expectations, showing an increase in the core consumer price index to 3.3% against the projected 2.3%. On October 11, Bitcoin rose in price by 3.67%, to $62,540. It grew from the opening of the Asian session and accelerated after breaking the trend line during the European session. After the release of the report on the producer price index (PPI) for September, Bitcoin rose in price following stock indices. According to the latest data, the index remained unchanged compared to the previous month, which turned out to be better than analysts’ forecast, who expected growth of 0.1%. In annual terms, the PPI index grew by 1.8%, which is also better than the previous value of 1.9%. The markets reacted positively to this data. Major US stock indices such as the S&P500 and NASDAQ rose on the news, indicating a positive investor reaction to stable inflation and expectations of further economic growth.
Bond and currency markets also reacted. Treasury yields remained stable, and the US dollar retained its strength after the data was released. On Friday, major banks opened the new third-quarter earnings season. Before the main trading session, Bank of New York Mellon, Wells Fargo, JPMorgan Chase and BlackRock reported better-than-expected results. The Dow and S&P500 reached new highs on the back of good reports.
Bitcoin (BTC) is trading around $62.5 thousand on Sunday, October 13, its price is at the level of the end of last week. Renowned crypto analyst Konstantinas Sizovas analyzed the market situation and assessed the prospects for Bitcoin exchange rate movement over the next seven days.
There will not be many key data points in the market’s focus this week. Of note is the core retail sales index, which will be released on Thursday, October 17. For now, the forecast in the economic calendar is in the neutral zone – 0.1% against the same value for the previous month. Let us remind you that indicators higher than expected are considered a positive (bullish) direction for the USD, while data below the forecast negatively affects the USD rate. Deviation from the forecast in one direction or another can both support the dollar (higher data) and affect its decline if the values are in the zero or even negative zone.
Among the important economic events in the coming week from October 14 to 20, it is also worth noting that for the United States, the data on the number of new jobs and industrial production for September will be important. These statistics will allow us to assess the state of the American economy and the prospects for the Fed’s monetary policy. On Monday, October 14, the United States celebrates Columbus Day. Activity in the markets is likely to be low.
In conclusion, we will analyze the prospects of two flagships – BTC and ETH. Both assets have entered a sideways accumulation phase since the beginning of October. This usually happens between Fed meetings, when markets analyze and “digest” data that may affect the upcoming decisions of the banking regulator. For BTC, the nearest support zone is $59,900. From these values, one can consider a set of buy positions (it is advisable to wait for a reaction from buyers near the specified boundaries – for example, a reversal “pattern 123” in a rebound from the level) with an eye on the $62,700, $65,600 and $68,500 marks. For ETH, we note the support zone of $2,370. The target is the tops of $2,470, $2,630 and $2,820.
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