As Bitcoin struggles to overcome the current resistance level, the JPMorgan analyst remains optimistic of the BTC breakout rally this month. In a recent post, the JPMorgan team projected that Bitcoin will sustain a bullish momentum in Q4 despite facing a brutal plunge last week.
At press time 0827 (UTC), Bitcoin is trading at $62,350, a 2% drop in a day, CoinMarketCap data shows. BTC’s sluggish momentum was accompanied by a 62% increase in trading volume, igniting debates about the future of the giant coin.
Analyst Remains Bullish on Bitcoin Price
As market observers express concerns about an imminent bear market, the JPMorgan team projects that the Bitcoin bearish phase is coming to an end. The analyst recalled that October has historically favoured the crypto market.
From past reports, the analyst noted Bitcoin registered 70% gains in most of October. This implies that this month might no exceptional for Bitcoin to defy its recent volatility.
In their analysis, the JPMorgan team noted the possibility of Bitcoin following last year’s pattern to break above the stubborn resistance levels of $60,000 was likely.
The analyst confirmed that even though past behavior cannot solely determine the future performance of Bitcoin the increase in social media mention of ‘Uptober’ might determine whether BTC will attain the make-or-break moment.
Bitcoin Reacts to Macro Events
However, the analyst remains optimistic that Bitcoin will renew its bullish momentum driven by changes in macroeconomic factors. The analyst noted that the Federal Reserve had earlier announced plans to slash the interest rate in Q4.
The JPMorgan team argued that despite the Fed cutting the interest rate last month, the crypto market remained stagnant. The analyst noted that the rate cut had minimal impact on the broader crypto market.
They recalled that crypto was launched in 2010 when the Fed had maintained the rates closer to zero. At this time, most crypto assets experienced wild price swings. This implies that instead of the rate cuts the Fed should maintain stable rates to shake things up in the crypto market.
The JPMorgan team concluded that stable rates could benefit the stock and crypto market. Reflecting on the recent events in the crypto space the analyst noted that the approval of Blackrock Bitcoin exchange-traded funds (ETFs) boosted crypto growth.
Is Bitcoin Rally Around the Corner?
With the approval of Bitcoin ETF, the analyst projected an increase in crypto market liquidity pushing the price of major crypto higher. Besides the impact of crypto ETFs, the analyst noted that ongoing development with the Ethereum ecosystem such as Pectra Upgrade could impact crypto price trajectory.
The Ethereum team confirmed that project Pectra aims at addressing the scalability and efficiency concerns on the network. The analyst projects that the success of project Pectra will reshape the Ethereum network driving most crypto on an upward trend.
With shift of macroeconomic factors combined with ongoing development in the crypto space demonstrates that Bitcoin is a sensitive asset to macro events. This development demonstrates that Bitcoin is still awaiting another catalyst to realize the predicted Uptober rally.
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