Week Ahead: Is October’s weekend rally a prelude to 2024 bull run?
Last weekend, the cryptocurrency ecosystem saw a sudden but massive spike in bullish momentum. As a result, many altcoins saw a huge rally. For example, Chainlink’s LINK token rallied 21% on Saturday, Solana’s SOL token surged 12%, while Bitcoin price tagged $30,000 and is hovering close to $31,000.
This uptick has pushed many investors to believe that this is the start of a bull rally.
Read more: Here’s what to expect from Bitcoin price after false ETF approval rumors
Has crypto’s bull run begun?
Bitcoin price threatened the 2023 bull rally in September when it formed a weekly lower low at $25,386. But the recent uptick has pushed BTC above a key weekly high of $31,777. If the pioneer crypto produces a higher high above this level, it would indicate the sustenance of the 2023 bull rally.
However, a weekly candlestick close below $31,777 will form a lower high and potentially kick-start a correction,
Key levels to watch:
- $36,294, in case BTC closes a weekly candlestick above $31,777
- $28,082 and $25,941, in case BTC closes a weekly candlestick below $31,777.
BTC/USDT 1-week chart
Also read: Bitcoin Weekly Forecast: BTC bulls can make or break 2023 rally
While Bitcoin price presents an ambiguous outlook, here are key events that could affect the broader markets.
- Fed Chairman Powell Speech – October 25
- Core PCE Price Index – October 27.
- Fed Interest Rate Decision/Fed Press conference – November 1.
- Nonfarm Payrolls – November 3.
While the jobs report on November 3 is important, for the upcoming week or ten days, the most important event will be the Fed’s interest rate decision, which could shift investor sentiment from risk-on to risk-off and vice versa.
Fed unlikely to hike rates on November 1
The FedWatch Tool from CME Group shows a 98.4% probability of a pause in interest rate hike on November 1. There is, however, a 1.6% probability that the Fed will pivot and cut rates. But as the numbers suggest, the chances of this happening are slim after higher-than-expected jobs and inflation reports.
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CME Group FedWatch Tool
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
