Bitcoin jumps to 28k showing gains are in the near future

Bitcoin has had a difficult time over the past eighteen months, with values starting to descend steadily. However, in January 2023, things began to change, as the market started recording gains instead. Unfortunately, the momentum wasn’t to last, and the regulatory pressures and steep inflation rates impacted the marketplace negatively. The fact that the SEC refused to come up with a definitive choice on the issue of ETFs has plunged the market into further distress, leading to trouble among investors.

However, many have continued to look for places where to buy Bitcoin, knowing that adding the coins to their portfolios can act as a hedge against inflation. With the next halving approaching, many are convinced that it is only a matter of time until Bitcoin rallies again and the values begin climbing. And when that happens, long-term holders will be ready.

Bitcoin jumps to 28k showing gains are in the near future

$28k

The Bitcoin price has stagnated for quite some time under the unyielding pressure of external factors. But starting from August 17th, when prices suddenly plummeted by approximately 10%, digital gold has been recording a downward tendency. September has historically been a bad month for cryptocurrencies, but October is also dubbed Uptober because of the gains that typically occur during the second month of the fall.

During the span of a decade, Bitcoin only recorded decreasing levels during October twice. And although the month is just beginning, it is to see that this won’t be the case for October 2023. The first day of the month brought considerable gains for Bitcoin, allowing it to breach the next level and climb above $28k. Now, most investors are eagerly awaiting the next step, which is mounting over the $30k barrier to finish the year off strongly.

Although it might seem like wishful thinking for some, it’s not really outside the realm of possibility. Graphs and data show that November is also a good month for Bitcoin, so growth will likely continue over the next month as well.

Bitcoin bulls 

The past year has been a continuous struggle between the bears and the bulls, as they are vying for supremacy in the ecosystem. Running on to the weekly close on October 1st, Bitcoin had already managed to clear the end of the September monthly candle. It also succeeded in doing so with minimal volatility. Although September hasn’t been a good month overall, Bitcoin nonetheless delivered a solid performance, with the best price posting since 2016.

The move, of approximately 5%, saw Bitcoin climb as part of the highest weekly close since the middle of August, managing to cancel the weaker performances that dominated the landscape ever since. Although some investors have said that there’s a possibility Bitcoin will retrace as well, it’s clear that the trend will remain upward for a while. It’s also probable that Bitcoin will continue consolidating and that the altcoins will follow suit, making for a more vibrant, engaging quarter.

Some are confident that the $28k level is the last hurdle Bitcoin has to overcome before starting down on the path of consistent and continuous growth. Research suggests that BTC is now contending with some resistance, coming in the form of the 200-week moving average of $27,970. That allows investors to have a “Buy the Dip, Sell the Rip” type of strategy to promote considerable gains. That also allows them to be prepared for the following setup.

Network fundamentals 

The fundamentals of the Bitcoin network haven’t managed to mimic the bullish sentiment of the spot markets. The estimates show that difficulty can drop by 0.7% at the subsequent automated adjustment. All-time high levels saw gains of roughly 6% back when Bitcoin performance was still decidedly uncertain. Competition among miners hasn’t changed since September and remains just as fierce. The spikes in hash rates have seen the environment remain ever-changing, primarily since miners are determined to adopt long-term endeavours to drive revenue.

The consensus is that the price follows the hash rate, and this philosophy more than ever applies to the current marketplace. Yet, some analysts believe the reverse is accurate, and the hash rate tends to follow the price. Some have even looked into ways to predict the hash rates differently. For instance, trailing data time frames allow users to maximize their success rates, decreasing the average error rate by roughly 13%. However, different sources also create different results.

Also Read: How Cryptocurrencies Are Changing the World of Investing

Dollar liquidity 

The macroeconomic environment has been increasingly important for the crypto market, and Bitcoin investors have been looking to larger economic patterns to determine how they should proceed moving forward. The connection between global liquidity and the performance of risk assets has been well-documented. It has received more interest than ever before when the fluctuations created by the pandemic became visible and started attracting attention and encouraging research.

Moving forward the liquidity trends will continue to impact the Bitcoin price action moving forward. However, recent data shows that there has been a divergence between the BTC/USD pair and US dollar liquidity. The least resistance was recorded sideways, although substantial risk still remains for a few quarters from now on.

Singapore license 

A well-known crypto exchange obtained its Singapore payment license on October 2nd. The move comes a year after the initial approval, which permits the buying, selling and trading of cryptocurrency tokens. The exchange succeeded in securing the regulatory approval necessary for functioning from the nation’s central bank. It also obtained the Major Payment Institution license from the Monetary Authority of Singapore on the first day of October.

This will allow the platform to expand its services not only to institutional investors but also to individual users. The MAS says that any entity operating on the basis of an MPI license is authorized to conduct payments and other services within the limit of 3 million Singaporean dollars, roughly equivalent to $2.2 million. However, a spokesperson for the exchange said that this success won’t only help the business and its operations but is also a step forward for the entire Web3 community. And, of course, with the growing community, there’s also more of a responsibility toward ensuring safe and secure operations.

The Bitcoin environment has been dealing with considerable ups and downs over the past year, but the Q4 of 2023 may manage to change that.