BTC rate holds above key support, risk of sharp movement remains

Bitcoin (BTC) has successfully bounced off the $106,000–$108,000 range, which was previously noted by Matrixport analysts as an important support level. Historically, such zones are rarely broken through on the first try, which makes the current range critical for further market movement. At the same time, gold has updated historical price highs, and European debt markets and accelerated growth of US government debt are increasing pressure on the financial system.

According to experts, the decline in the value of Bitcoin to these levels confirms the bearish scenario that was discussed several weeks ago. According to reports, the cryptocurrency funding indicators have significantly decreased, and the expected volatility has almost zeroed out. Despite this, the key macroeconomic events of September create conditions for sharp movements.

“Traders have already begun to restructure positions, but options show that the market may be underestimating the risks ahead. Such a disparity often precedes unexpected price movements,” the researchers said.

History, they say, shows that deep drawdowns often provide significant opportunities for investors. The question is how to position for a fourth-quarter rally without running the risk of another big decline.

Experts emphasized that over the past year, Bitcoin and gold have been moving in an upward trend, with the precious metal consolidating above $3,580 and the Bitcoin rate holding at around $111,200. These values highlight the divergence in asset dynamics and a possible shift in investor interest to more stable instruments amid uncertainty in the cryptocurrency sector.

Source: cryptonews.net