Bitcoin poised for a short-term pullback before the final surge
For the upcoming Bitcoin analysis, I’m anticipating one more push lower toward the 58k level before establishing a higher low. This pullback could be driven by two key factors:
1. Geopolitical Escalation: The ongoing Israel-Iran conflict is expected to escalate further, injecting uncertainty into global markets. Historically, geopolitical tensions lead to a flight to safety, with investors moving away from risk-on assets like Bitcoin in favor of safe havens such as gold and the U.S. dollar. As uncertainty heightens, Bitcoin could see short-term selling pressure, temporarily driving prices lower.
2. Inflation Fears Due to CPI and Fed Policy: The stronger-than-expected U.S. employment data has raised concerns that inflation could reignite. These concerns come in light of the Federal Reserve’s recent 50 basis points rate cut, which some believe was overly aggressive. If the October CPI report confirms rising inflationary pressures, it could lead to a market-wide correction as investors reassess the Fed’s ability to balance growth and inflation. This spike in inflation fears might trigger a broader risk-off sentiment, pushing Bitcoin toward the 58k region before it stabilizes.
Overall, while this pullback may seem bearish in the short term, it could provide a buying opportunity as I expect the market to form a higher low, setting the stage for the next leg up in Bitcoin’s long-term cycle. The correction, therefore, could be the final leg of consolidation before a renewed bull phase.
1. Geopolitical Escalation: The ongoing Israel-Iran conflict is expected to escalate further, injecting uncertainty into global markets. Historically, geopolitical tensions lead to a flight to safety, with investors moving away from risk-on assets like Bitcoin in favor of safe havens such as gold and the U.S. dollar. As uncertainty heightens, Bitcoin could see short-term selling pressure, temporarily driving prices lower.
2. Inflation Fears Due to CPI and Fed Policy: The stronger-than-expected U.S. employment data has raised concerns that inflation could reignite. These concerns come in light of the Federal Reserve’s recent 50 basis points rate cut, which some believe was overly aggressive. If the October CPI report confirms rising inflationary pressures, it could lead to a market-wide correction as investors reassess the Fed’s ability to balance growth and inflation. This spike in inflation fears might trigger a broader risk-off sentiment, pushing Bitcoin toward the 58k region before it stabilizes.
Overall, while this pullback may seem bearish in the short term, it could provide a buying opportunity as I expect the market to form a higher low, setting the stage for the next leg up in Bitcoin’s long-term cycle. The correction, therefore, could be the final leg of consolidation before a renewed bull phase.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.