On the night of October 7, Bitcoin approached the $64,000 mark. The drivers were positive data on the US labor market last Friday and expectations of a reduction in the Fed's key rate in November, The Block writes.
Experts noted that ongoing geopolitical tensions in the Middle East pose a risk to the rally of the first cryptocurrency.
"There is growing optimism about a soft landing for the US economy," said Presto Research analyst Min Zhong.
Rachel Lucas of BTCMarkets recalled expectations of Fed easing in November, which “is driving riskier investor sentiment and is positive for digital gold.”
The specialist also noted the reduction in exchange balances of coins as a factor in easing the pressure from sellers.
“To support this recovery, Bitcoin needs to break and hold key resistance at $64,500, with a retest of $66,000 possible,” Lucas added.
Speculators in the game
CryptoQuant has noted increased participation from short-term investors in recent days.
As of October 5, the volume of realized capitalization over the past seven days for this category of market participants increased by $6 billion. In other words, speculators (STH) are “increasing their longs,” while hodlers (LTH) are “taking profits,” the experts noted.
Data: CryptoQuant
Let us recall that experts also discovered the prerequisites for the formation of a “golden cross” in the Coinbase premium, which serves as a signal of a short-term recovery in the quotes of the first cryptocurrency.