Cryptocurrency Prices Rise Amid Bullish Sentiment
Cryptocurrency prices trended higher on Monday as last week’s gains for Bitcoin (BTC) emboldened traders to re-enter the altcoin market ahead of what some analysts have said will be the largest bull market in the history of crypto. Stocks reversed course from last week’s declines to post gains to start the week ahead of a highly anticipated Fed meeting where the central bank will announce its decision on interest rates.
Positive Technical Indicators For Bitcoin
Data provided by TradingView shows that Bitcoin’s price traded in a range between $34,085 and $34,872 on Monday, with the bulls and bears matched evenly for strength. Kitco senior technical analyst Jim Wyckoff noted that recent price action has formed a bullish pennant pattern on the daily bar chart, giving the BTC bulls a solid near-term technical advantage. Wyckoff added that the technical odds favor an upside price breakout from the pennant pattern, expected to happen this week.
October Bull Run with Uncertain Outlook
October has so far been a positive month for Bitcoin, with gains of close to 25% at the time of writing. However, David Lifchitz, managing partner and chief investment officer at ExoAlpha, cautions that historical performance does not guarantee future results. Lifchitz lists several bullish factors, including the SEC taking a less aggressive stance on cryptos and the potential approval of a spot BTC ETF. Bearish factors include regulatory pressure on Binance, the Mt. Gox liquidation repayment, and the state of the worldwide economy. Lifchitz believes that Bitcoin has more tailwinds than headwinds, but also acknowledges the need for a breather after its recent rally.
Potential Impact of Altcoins and Market Wildcards
Lifchitz notes that altcoins have been lagging behind Bitcoin this year and predicts a catch-up rally in the near future. He also highlights potential market wildcards such as central bank decision on rates, the Middle East situation, and the performance of altcoins. Despite some resistance, Lifchitz sets an optimistic year-end price target of $45,000 for Bitcoin, representing a 170% growth for the year from its January trading level. He suggests that the birth of a Bitcoin ETF could further propel its price.
Altcoin Market Movements
On Monday, a majority of altcoins recorded gains as traders looked to rotate into promising altcoin projects. Polymesh (POLYX) led the gainers with an increase of 41.85%, followed by Tellor (TRB) with gains of 17.8% and Osmosis (OSMO) with gains of 16.8%. Gala (GALA) was the biggest loser, declining by 4.5%.
