Cryptocurrency markets continue their October bull run. In the process, Bitcoin (BTC) surpassed $31,000 on Monday for the first time since mid-July. The leading cryptocurrency approached $31,800, the highest level it has reached since the beginning of the year.
BTC exceeded the critical threshold, dragging the market behind it!
‘cryptokoin.com’BTC has risen over 4% in the last 24 hours. Bitcoin traded at around $31,200 in the early afternoon in the US, outperforming the broader crypto market proxy CoinDesk Market Index (CMI), which was up 3.7%. This move pushed Bitcoin closer to its yearly high of around $31,800.
Chainlink (LINK), Polkadot’s native token (DOT), and Polygon (MATIC) were among the best-performing large-cap digital assets, with advances of 6%-10%. Ethereum (ETH) and Ripple-related token (XRP) gained 2%-3%. Meanwhile, the US stock market erased its losses from early Monday. On the other hand, the 10-year Treasury yield reached 5% for the first time in 16 years early in the session. However, it later dropped sharply. This became a signal for the stock market and crypto markets.
The leading cryptocurrency has entered a significant bull trend!
CoinDesk Bitcoin Trend Indicator BTI, which measures the directional momentum and strength in Bitcoin’s price movement, has moved into a “significant bull trend” as BTC strengthens its foothold above the $30,000 level, said Todd Groth, director of research at CoinDesk Indices. In this context, Groth comments:
BTC, ETH and the CoinDesk Market Index (CMI) rose on a weekly basis as tech stocks diverged from the QQQ and rising long-term yields.
Options will support Bitcoin rise!
Alex Thorn, director of research at digital asset investment firm Galaxy, says the uptrend could accelerate further due to the need for option sellers to buy Bitcoin on the spot market to protect their positions above the $30,000 price level. In a market report, Thorn underlines the following:
At its peak around $32,500, almost $20 million of BTC would need to be purchased by option sellers for every 1% increase for the delta to remain neutral. Positioning means that market makers must buy back increasing amounts of delta as the spot rises. This will increase the explosiveness of any move in the short term.
Galaxy’s Thorn adds that the $26,750 – $28,250 zone will act as a support zone for BTC’s price. In this regard, the analyst said, “If the spot falls below this range, dealers will need to buy Bitcoin to remain delta neutral. This will provide additional spot price support if we fall below this range.” says.
A reverse perspective for Bitcoin
But ByteTree analysts look at it from a different perspective, in a report published on Monday. Analysts state that activities on the Bitcoin Blockchain show a more pessimistic outlook. ByteTree’s Shehriyar Ali and Seran Dalvi say transaction numbers dropped by 50% in a month. He also notes that the economic efficiency of the Bitcoin network is also in a downward trend. Analysts said, “This means that the price moves only in anticipation of positive news. Therefore, this is not healthy for the short term,” they say.
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