Bitcoin price is showing weakness after another sharp rejection from the $11,000 resistance level.
As Bitcoin enters the fourth quarter, the sentiment around the market remains generally cautious and neutral.
Bitcoin might face a larger pullback in the fourth quarter due to several key factors.
From March through August, favorable financial conditions, a low-interest-rate environment and a multitrillion-dollar stimulus package caused Bitcoin and stocks to rally in tandem.
As long as Bitcoin remains in between either the $9,800-$10,700 or $10,700-$11,800 ranges, low volatility is expected.
As a potential area of interest, traders are considering the $9,600 CME gap that forms when Bitcoin price rises or falls below the CME Bitcoin futures market price after it closes for weekends or holidays.
The monthly candle of Bitcoin is expected to close below $11,000, which would confirm a red candle for the month of September.
The price of Bitcoin briefly broke out of the $10,800 resistance level on Sept. 28.
Although Bitcoin has increasingly decoupled from stocks and has shown more correlation with gold, it remains generally affected by the broader financial market's sentiment.
"Macro and political developments have become an increasingly important driver of sentiment across all markets, and digital assets are no exception. The uncertainty surrounding elections in the US is widely expected to result in plenty of volatility. Spillover risks are seen as high but what is interesting is that implied volatility for Bitcoin and Ethereum has remained well anchored even in spite of the lacklustre spot markets price action."On-chain indicators are positive.
Bitcoin price risks even bigger pullback in Q4 after sharp rejections
Published on Sep 30, 2020
by Cointele | Published on Coinage
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