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On September 30, the price of bitcoin briefly rose to $20,100 and then dropped to $19,700. BTC’s stability is partly supported by the fact that this asset acts as a favorable hedging tool at a time when the US dollar is crowding out other global fiat currencies.
Kitco News analyst Jim Wyckoff suggested that falling Bitcoin volatility could indicate that “strong price movement is expected on the horizon” after a long sideways trade.
In terms of the asset’s outlook, Wyckoff stated that if the price breaks the September high around $20,000, the bulls will activate. If the asset crosses the lows of September next month, the bears will dominate.
Bitcoin chart. Source: Trading View
It is believed that October is favorable for the asset, and this can be a key psychological boost for most investors. They are likely looking to capitalize on the bull season, but will remain dependent on prevailing macroeconomic factors.
While bitcoin is showing signs of a potential rally, macroeconomic factors paint a bleak picture. It is worth noting that the original concept of BTC was meant to survive in an environment characterized by rising interest rates and a slowing economy.
In this context, the trading volume of BTC and other global fiat currencies records a surge as investors abandon the British pound and euro in favor of bitcoin.
In addition, the cryptocurrency community is betting that Bitcoin will break the $20,000 level as the cryptocurrency continues to try to break out of the bear market. The crypto community on CoinMarketCap predicts that Bitcoin will trade at $22,857 by the end of October.
Under these conditions, Bitcoin is closely correlated with the stock market, although there are signs of decoupling. As of September 29, the correlation between Bitcoin, Ether (ETH) and the S&P 500 is down -2.4%.
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