Bitcoin Rebounds Strongly After Consolidation: Institutional Investment and Elections Fuel Market Optimism?

Bitcoin Rebounds Strongly After Consolidation: Institutional Investment and Elections Fuel Market Optimism?Yesterday (October 10th), Bitcoin's price retreated to the $60,000 level, entering a narrow range of consolidation. However, it continued to fluctuate downwards overnight, reaching a low of $58,900, its lowest point since September 17th

Bitcoin Rebounds Strongly After Consolidation: Institutional Investment and Elections Fuel Market Optimism?

Yesterday (October 10th), Bitcoin's price retreated to the $60,000 level, entering a narrow range of consolidation. However, it continued to fluctuate downwards overnight, reaching a low of $58,900, its lowest point since September 17th. However, Bitcoin then rallied quickly, currently trading at $60,881, with a 24-hour decline narrowed to 0.74%. Does this indicate that the main players have secured liquidity?

Although Bitcoin has retested the $60,000 mark four times on the daily chart, with no clear signs of a stop in the downtrend yet, a closer look reveals that the bearish momentum is not as strong as the previous three times. Conversely, the bulls have successfully broken through the previous highs in all three upward movements, indicating a gradual recovery of bullish sentiment since the major drop on August 5th.

Bitcoin is undoubtedly still consolidating. While the price has yet to surpass the previous high, the low briefly dipped below $50,000 before quickly recovering. Overall, despite the high-risk sentiment surrounding Bitcoin's movement, considering its overall trajectory, BTC remains in a bull market.

Why did Bitcoin plunge rapidly and then rebound sharply?

The Consumer Price Index (CPI) data released by the Federal Reserve last night showed that the US seasonally adjusted CPI annual rate for September reached 2.4%, although lower than August's 2.5%, it was also slightly higher than the market expectation of 2.3%. Meanwhile, initial jobless claims in the US last week totaled 258,000, increasing by 33,000 week-over-week, also exceeding the market expectation of 230,000.

With persistent inflation and a relatively weak labor market, Bitcoin saw a decline, triggering significant volatility and a sharp sell-off, briefly falling below $59,000.

Discussing Future Market Trends

Despite short-term fluctuations, I remain firmly optimistic about the future! This market is good, the big trend hasn't changed. The longer the consolidation lasts, the more it will propel value coins to soar!

Institutional Investment and the US Election

The upcoming US election in November is also a significant factor influencing the market. Institutional investors may pay closer attention to the cryptocurrency market in the coming period, hoping to capitalize on market volatility after the election results are released. Historically, the fourth quarter market reaction tends to be "neutral to positive." Even if selling pressure emerges after the election, institutional investors might enter the market due to their bullish outlook on the upward potential of cryptocurrencies.

Overall, with the election approaching, the outlook for the cryptocurrency market remains optimistic, particularly regarding regulation. If this round of BTC consolidates above the MA120, coinciding with a rapid interest rate cut by the US, achieving the right time, location, and conditions, then it will witness a major upward surge, expected to last 3-6 months.

Whether it's US equities, Hong Kong stocks or A-shares, they all benefit from the anticipated interest rate cuts, and there will be spillover effects. If these markets enter into a prolonged period of broad adjustments, then the crypto market may find it difficult to stay out of the trend for a long time. Therefore, it's important to be aware of the risks in the latter half, especially for altcoins where uncertainties abound. Long-term faith can only be placed in BTC.

Ultimately, it's the same message as yesterday: while the crypto market faces short-term volatility, from a medium to long-term perspective, the overall market outlook remains positive. The current adjustment is mainly a market washout, aiming to clear out short-term speculative funds and build momentum for the next wave of growth. The major trend hasn't changed, and the long-term outlook is undoubtedly bullish. Short-term market sentiment may be affected by panic, and even if a decline occurs, it won't be significant, at most a dip. Short-term traders need to be wary of pullbacks, those who entered at higher prices should manage their stop losses, avoid aggressive chasing of highs, but those who bought at lower prices should hold onto their positions.

What coins are worth burying now?

• UNI (Uniswap)

UNI has recently seen a strong price surge, while many other major cryptocurrencies have declined. This recent price action reflects growing excitement about a potential breakout, indicating that UNI could rise further soon. Another key driver of this surge is the increasing activity within the Uniswap ecosystem.

Analysts have recently expressed highly bullish outlooks for UNI, suggesting that the token is on the verge of a significant breakout. UNI has bounced back from daily and weekly supports, indicating price resilience. The analyst also praised the Uniswap ecosystem, calling it one of the strongest ecosystems in the crypto space, highlighting its rapid expansion. With this momentum, UNI could even rise to become one of the top five cryptocurrencies in the current market cycle.

On the chart, UNI/USDT is attempting to break out of the downtrend resistance line that has been suppressing its price for some time. This breakout is a solid bullish indicator, supporting the argument for a substantial upward movement in UNI. UNI has been finding support in the $6.00 to $6.50 range, demonstrating strong buying interest. This region has formed a double bottom and triple bottom pattern, reinforcing its importance as a support level. Currently, UNI is testing the key resistance level of $8.5, with bullish momentum pushing the price higher. Today's 7.4% price increase indicates growing interest, and a pullback to the $7.5 to $8.0 range would present a good opportunity. The current upward target is now within reach.

Furthermore, UniswapLabs is gearing up for Uniday on November 11th at Devcon, an event featuring talks by community members, developer demos, and DeFi innovation workshops. This event underscores the strong community support and growth within the Uniswap ecosystem.

• CELO (Celo)

Celo stands out for its focus on enabling cryptocurrency use among users in emerging markets, especially through mobile technology. The platform allows individuals to send and receive funds using only their phone numbers, lowering the entry barrier for crypto newcomers. Celo also supports stablecoins, helping to protect users from market fluctuations.

As mobile technology expands globally, Celo's emphasis on accessibility creates a prime opportunity to increase cryptocurrency adoption. Its commitment to financial inclusion is particularly noteworthy. Celo is transitioning to a Layer-2 (L2) solution on Ethereum (ETH), which has boosted stablecoin activity on the platform. According to Artemis data, Celo has now surpassed Tron (TRX) in terms of daily active addresses related to stablecoin usage. It has also surpassed networks like Solana (SOL), TheOpenNetwork (TON) and BNBChain in this category, highlighting its growing presence.

In recent trading activity, Celo has performed well, rising from a low of $0.6945 to reach a 24-hour high of $0.7471. At the time of writing, it is trading at $0.7337, up by 9.55%. This indicates increased buying activity and positive market sentiment. Celo is trading 40.52% higher than its 200-day Simple Moving Average (SMA) of $0.524995. The stock has been in an uptrend for 19 out of the past 30 days, representing 63% of the period, as of October 6, 2024, with technical indicators suggesting an optimistic outlook. If Celo maintains its current momentum, more upward trends may emerge, but traders should exercise caution and manage risk when making decisions.