Bitcoin Bounce Above $62K Quickly Fades; Ether, XRP, ADA, LINK Lose as Torrid October Continues

Bitcoin’s

(BTC)
modest
rebound
from
the
geopolitical
turmoil-induced
sell-off
was
arrested
at
$62,400
during
the
Wednesday
U.S.
session,
tumbling
back
below
$61,000
in
the
later
hours.

U.S.
stock
indexes
remained
mostly
flat
after
yesterday’s
losses
on
rising
conflict
between
Israel
and
Iran.
Gold
pared
some
of
its
gains
while
oil
retraced
to
$70
from
its
intraday
top
at
$72,
perhaps
a
sign
of
easing
investor
concerns
over
further
military
escalation.

The
Japanese
yen
tumbled
1.8%
against
the
U.S.
dollar
on
incoming
prime
minister
Shigeru
Ishiba
ruling
out
further
interest
rate
hikes
in
the
near
term,
saying
that
the
country’s
economy
isn’t
ready
yet
for
more
restrictive
monetary
policy.
Keeping
central
bank
policy
loose
would
support
risk
assets,
as
the
Bank
of
Japan’s
surprise
rate
hike
in
August
triggered
a
broad-scale
market
crash
as
traders
were
forced
to
unwound
their
positions
funded
by
cheap
yen-based
loans.

Crypto’s
dismal
start
of
October,
which
was
widely
expected
to
be
a
bullish
month,
has
left
crypto
traders
worried
about
further
downside
as
the
euphoria
from
bitcoin’s
swift
run
to
$66,000
from
$52,000
last
month
quickly
faded.

Whether
prices
rebound
or
tumble
lower
may
depend
on
bitcoin’s
ongoing
retest
of
its
“Bull
Market
Support
Band,”
a
key
trend
indicator
defined
by
the
asset’s
20-week
simple
moving
average
(SMA)
and
a
21-week
exponential
moving
average
(EMA).
The
band
often
served
as
support
for
prices
during
previous
uptrends,
and
currently
ranges
between
$61,100
and
$62,900.
A
bounce
from
the
band
would
reinvigorate
the
uptrend
from
the
September
lows
to
target,
but
a
decisive
break
below
could
undo
all
the
recovery,
with
many
more
weeks
chopping
below
$60,000.

Analysts
at
crypto
hedge
fund
QCP
said
that
bitcoin
could
tumble
to
as
low
as
$55,000
if
the
Middle
East
conflict
escalates
further
and
investors
move
risk-off,
but
the
$60,000
level
acted
as
solid
support
so
far.

“Middle
East
geopolitics
will
steal
the
limelight
for
now,
but
the
shallow
sell-off
suggests
that
the
market
remains
well
bid
for
risk
assets,”
QCP
said
in
a
Tuesday
update.

“This
minor
setback
shouldn’t
distract
from
the
bigger
picture,”
QCP
analysts
added.
“Asset
prices
are
expected
to
remain
supported
heading
into
2025,
as
both
the
largest
(the
Federal
Reserve)
and
third-largest
(People’s
Bank
of
China)
central
banks
in
the
world
have
started
their
cutting
cycles
in
earnest.”

Blockchain
analytics
firm
CryptoQuant
noted
signs
of
BTC
demand
recovering
from
the
summer
slump,
driven
by
U.S.-listed
spot
ETFs.

If
demand
picks
up
and
favorable
year-end
seasonality
materializes,
BTC
could
target
the
$85,000-$100,000
range
in
the
last
quarter,
according
to
CryptoQuant.

“These
levels
align
with
the
upper
range
of
the
on-chain
trader
realized
price
bands,
where
short-term
traders
often
take
profits
following
price
rallies,”
CryptoQuant
analysts
said.