Why Bitcoin Retracement Should Not Deter Investors
Today, Bitcoin has reversed course on its bullish trend, but that could be a retracement that will quickly be over.
After an incredible climb to $64K, Bitcoin (BTC) has finally started to slow down and has fallen back to $62,618 (BTC/USD). Is this the start of a bear trend or a simple retracement?
It is worth considering that Bitcoin’s drop started late Monday evening after several consecutive days of upward movement. The coin dropped to $62,085 in the early hours of Tuesday morning and then started to climb slightly. The coin is only down 0.38% for the last 24-hour period.
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Despite a sharp decline last week, Bitcoin has fallen just 1.76% over the last seven days. Even though several factors are working against the coin’s progress, it has proven resilient, and in fact, more resilient than the rest of the crypto market.
For the last week, Solana (SOL) has fallen 7.78%, and Ethereum (ETH) has dropped 7.22%. Other major cryptos are likewise down for that same period, and most of them have fallen far sharper and deeper than Bitcoin.
The Larger Trend
Bitcoin appears to be bullish overall, in spite of today’s setback. We anticipate a quick turnaround for the token, and we will show you by looking at some influential factors.
There are several key factors that investors need to be aware of that could affect Bitcoin’s movement. On the downside, the increased fighting in the Middle East has hurt the stock market and the crypto markets, but Bitcoin seems less affected than other assets. The hurricane season is also affecting trading, but that effect is likely to be very temporary.
Bitcoin is being buoyed by the recent interest rate cut and talks of another coming soon, perhaps next month. It is also being helped along by the decreasing inflation rate and a number of positive economic reports that show the US economy is making a slow and steady recovery.
Bitcoin has been making progress recently toward $70,000 and we anticipate it will reach that milestone sometime in November. If it does, that would allow the coin to hit a record high during the holiday season, which could springboard it to greater growth.
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