Bitcoin is stuck in a tight range. Are we still on track for a bullish breakout next year?
The MN Consultancy CIO and Founder stated that Bitcoin’s price has been stuck in a tight price range and explained different indicators explaining the price of BTC. The analyst, Michael Poppe, explained that the crypto market has a bearish sentiment, with Bitcoin hovering over the same range over the past 200 days.
Poppe still noted that the neutral Fear and Greed Index is not as bad as it was a few months ago when it was as low as 26. For this reason, Poppe believes that many events will happen in Q4, saying that the quarter will be a great period for the crypto cycle.
The consultancy firm’s founder referred to his previous discussions in Uptober as one of the great events of Q4. According to Poppe, while Uptober wasn’t happening yet, the month is still halfway and could offer more bullish events. Uptober, according to Poppe, is from 7 to 11 October, when most investors expect upward momentum in crypto markets.
However, Poppe was slightly skeptical about current Bitcoin prices, which hover around 62 to 66K and are not as impressive as he expected. He also said that if investors do a fear comparison next to the altcoins, they would get a number 20 to 30.
ETH recovery depends on Bitcoin breaking crucial levels
Poppe said the current technical altcoin valuations are the lowest crypto markets have seen. Michael described the ETH/BTC chart as the worst chart he has seen over the years, saying it continued to have a downward momentum.
According to Michael, Ethereum is improving, with lower fees, staking, and DeFi. The MN Consultancy CIO explained that the blockchain was expanding in the current period, and it would only be a matter of time before ETH recovered.
However, altcoins are following suit, given that ETH is trending down and making cycle lows. Poppe mentioned that crypto markets need to wait until the coin reverses, which will likely happen when Bitcoin breaks through crucial levels.
Poppe pointed out possible indicators for a BTC breakout, explaining the long consolidation period the king coin has experienced. The consultancy firm’s founder discussed how consolidation periods in the past have led to massive breakouts for BTC. Given the examples of 2016 and 2002, Poppe believed that BTC could cross the $90,000 mark after the current consolidation period.
Michael explains the role of the Feds on ETH’s recovery
The current downward momentum is because Ethereum moves alongside the strength or weakness of the Feds. Michael says that global liquidity expansion or Fed rate cuts will likely help Ethereum.
The MN Consultancy founder also mentioned the recent Fed interest rate cuts of 50 basis points in September. Michael expressed fear that the market would not have any more rate cuts in November due to the seemingly positive economic data.
Unemployment is 4.1% instead of the expected 4.2%; labor market expansion is increasing, and inflation is lower. For these reasons, Michael believes that the Fed has no reason to cut rates again.
Poppe also hinted at the upcoming Fed meeting in November, which could initiate a rate cut if the economic indicators worsen. The consultancy firm’s founder also described possible doubts about a recession. According to Michael, possible rate cuts could increase altcoin prices.
The MN Consultancy founder further discussed the upcoming FTX payment to its customers in crypto-native currencies. Michael mentioned that the repayment plan can increase cash inflow into crypto markets.
