Summary

  • Bitcoin climbed 1.38% to $82,837 on Friday, recovering from a dip to $80,427 the previous day. The overall crypto market cap increased by 2% to $2.8 trillion, while the Fear & Greed Index fell to a neutral 56.
  • Bitcoin ETFs experienced a loss of $484.9 million on Wednesday and an additional $244 million on Thursday, coinciding with a rise in the 10-year Treasury yield to 5.32% and indications from Fed minutes of a potential rate hike by the end of the year.
  • Traders are anticipating a 67% likelihood that Bitcoin will trade at or below $80,000 by the end of October.

The cryptocurrency markets are showing some life today, with total capitalization rising 2.1% to $2.89 trillion on Friday. This recovery only partially offsets the losses from earlier in the week, as the market was above $3 trillion just seven days ago when Bitcoin was nearing its annual peak.

Despite this uptick, market sentiment remains cautious. The Fear & Greed Index has dropped to 56, reflecting a neutral stance, down from the 71 that indicated “greed” on October 2.

Myriad: Predict Bitcoin's Lowest Point - Click Here.

Wall Street's anxiety is palpable, with Bitcoin ETFs losing $484.9 million on Wednesday, marking their worst performance since June 25, followed by a further decline of $244 million on Thursday, as reported by Decrypt's ETF tracker.

As of Friday, Bitcoin is trading at $82,837, reflecting a daily increase of 1.38%, after having dropped to $80,427 on Thursday, which was its lowest point since early September.

Bitcoin ETF Flows - Image: Decrypt

The daily trading opened at $81,711, fluctuating between $81,553 and $83,443. On a four-hour chart, Bitcoin remains below the 50-period exponential moving average, indicating that the short-term trend has not yet reversed.

According to Myriad, a prediction market owned by Dastan, the parent company of Decrypt, there is a 67% chance that Bitcoin will be at or below $80,000 at some point in October, with 40% odds for $77,500 and 24% for $75,000.

Bitcoin Price Data - Image: Tradingview

In a different weekly market, there are 49% odds that Bitcoin will close the week above $87,500, suggesting traders expect a period of price stabilization with potential for further declines.

The Average Directional Index (ADX), which assesses trend strength irrespective of direction, shows a reading of 37.9 on the daily chart, significantly above the 25 mark that indicates a genuine trend. The directional indicators suggest that buyers (DI+) are currently outpacing sellers (DI-), signaling a bullish trend despite recent pullbacks.

The Relative Strength Index (RSI), which measures buying pressure on a scale from 0 to 100, stands at 51.2, indicating a neutral position, similar to the Fear and Greed Index. This is noteworthy as Bitcoin seems to be cooling off after a period of being overbought.

Luke Deans from Bitwise Europe stated to Decrypt that the $83,000 level merges the average ETF cost basis with the previous higher-high level, marking a critical test for any bounce back. Successfully reclaiming this level could set up a target at $84,433, while the September high of $87,354.33 remains a key resistance point for bulls needing a daily close above it.

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