October has traditionally been known as a bullish month for cryptocurrency, giving hope for the bulls to push on.
Thursday, before and after US inflation we had two different reactions from cryptocurrencies. Ahead of CPI numbers, fears of higher inflation put pressure on prices to send them to their 3-week low. However, after the data was published, sentiment in the market changed due to the decrease in inflation for the third consecutive month. The main question now is about the reliability of this U-turn.
Looking at the bigger picture says that despite a slight decrease, inflation still is so high, therefore, we can still wait for the next round of tightening policies. With the background of concerns about the economic recession, expecting more hawkish tones from central banks is not good news, neither for stocks nor cryptocurrencies, as sentiment remains uncertain.
With overall data from the US, EU, and other major economies, we now have more Central Banks that will continue tightening their monetary policy to combat soaring inflation. Last week, cryptocurrencies struggled to hold on to their gains, as recession concerns intensified, diminishing risk appetite, so after October 5, they lost the profits made in the first half of the week, which continued this week as well, until Thursday.
In the end, according to the economic data we have and overall market condition, for now, we do still not have a reliable reason to count on a price-raising trend.
Bitcoin price struggling to reach the key $20,000, while around $19,000 also creates important support. If BTC declines, under 19,000, next support can be found at $18,825 and further down at $17,600, while resistance may be encountered near $20,000. However, October has traditionally been a good month for cryptocurrency, giving hope for the bulls to push on.
