October has only just begun, and Bitcoin is already down 4.5%, with signs pointing toward further declines. After a strong end to September, many had hoped that October would kick the bull run into another gear. However, with this poor start, I’m putting the term ‘Uptober’ on hold until the market takes a turn for the better.
An accurate representation of how the Crypto market is feeling…
The sudden shift to bearish sentiment, following what seemed like positive momentum, is attributed not only to the BTC Bull Trap but also to rising geopolitical uncertainty in the Middle East. Israel is expected to retaliate after Iran's recent attacks, which will escalate the conflict further. As a result, investors are shifting out of risk-on assets and moving into traditional safe havens like Gold and the USD. Unfortunately, Bitcoin continues to struggle in this environment, behaving more like a risk-on asset rather than a safe haven, as Gold typically does.
My question to you, the reader: Do you think Bitcoin will eventually be seen as a 'safe haven' asset, similar to Gold, or will it always be viewed as a risk-on asset? Let me know your thoughts in the comments.
Here are some key considerations during such times. Avoid panic selling—use these dips as an opportunity to reload your positions and dollar-cost average (DCA). The key asset to watch is Gold, the proven ‘safe haven.’ The question surrounding Bitcoin is whether it will act as 'digital Gold' or a risk-on asset. Regardless of how Bitcoin reacts, there is no better time to buy or DCA into Bitcoin than during a dip. For those looking to DCA into altcoins, focus on coins that were strong before the downturn, such as FTM, SEI, and SUI, but remain cautious, as there is a high probability that markets could continue to decline. After taking these steps, remain patient. Those who buy when others are fearful often benefit the most when the market eventually rebounds. Contact your Stormrake broker to take advantage of this opportunity to secure yourself some Gold, Bitcoin or Altcoins.
Stormrake Spotlight: FANTOM ($0.6678)
Stormrake Spotlight: FANTOM ($0.6678)
It might seem like FTM has been trading sideways since yesterday's Morning Note, given that the price is virtually unchanged. However, this is far from the truth. Once again, FTM rallied almost 10% to reach a high of $0.7333 before retracing to its current price, as Bitcoin failed to sustain any upward momentum. FTM continues to show resilience against both BTC and the broader market, making it a coin to watch closely. It will likely be one of the first to rally when the market turns.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin managed to bounce off the key support level at $60.1k early yesterday and showed some signs of strength before being halted by the 55 EMA and a key monthly CPR level (top dotted blue line) near $62k. Currently, BTC is holding above the critical support of the orange line at $60.1k. The confluence of blue monthly CPR levels will continue to act as support and resistance until Bitcoin breaks decisively in one direction. Momentum remains to the downside, favoring a test of the next support level at $57.7k.
BTC Total ETF Flows for 2 Oct: $ - 60.3 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum seems to have reverted to its old ways of underperforming against Bitcoin. While BTC remains above a key support level and the middle CPR levels, ETH is trading below both. The bearish momentum on ETH is expected to continue down to the first monthly CPR s1 (red dotted support) at $2,260, where a bounce or some support may occur, though a reversal is unlikely. If the market continues to decline, ETH is likely to reach the lower support level at $2,171.
ETH Total ETF Flows for 2 Oct: $ + 1.8 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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Written by Alexandar Artis
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