Bitcoin attempts to clear $28.5k

Bitcoin (BTC) started October on a high note, reaching a six-week peak after crossing the $28,000 mark, which ignited hope for a potential rise to $30,000. However, analysts, including CryptoBullet, have indicated potential dark clouds on the horizon for BTC. Citing a developing head and shoulders pattern on Bitcoin's chart, CryptoBullet anticipates a downturn, possibly driving BTC's value down to between $19K and $20K by October's end, which he designates as a "buy zone". Another analysis by CryptoQuant suggests that Bitcoin might mirror its past cyclical patterns of devaluation after significant surges, as observed in 2020 and 2021. With BTC's future looking uncertain, bulls are being urged to rally to prevent a potential slump. Concerns are growing that negative news or institutional profit-taking could further push BTC's value downward. The general sentiment is cautious, advising investors to be prepared for possible challenges ahead.

(ZyCrypto)

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Bitcoin whales, known for their potential to influence market prices through large-volume transactions, are closely watched by investors. Recent on-chain data shows that a Bitcoin whale, dormant for three years, has moved 5,000 BTC (approximately $137 million) for the first time since 2020. The whale address received these bitcoins from "Poolin mining pool" in June 2020 when the price of Bitcoin was around $9,700, totaling about $48.5 million. With the current BTC price at $27,903, the value of the holdings increased considerably. This 5,000 BTC was divided between two new addresses: 4,000 BTC to one and 1,000 BTC to another.

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The activity has caused some caution in the market, as large BTC movements can cause price fluctuations. The reason for this transfer remains unclear, and if the whale plans to sell, it could put downward pressure on Bitcoin's price. However, Bitcoin's price has been stable, showing an overall 3.3% increase since the beginning of October.

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Bitcoin's price is looking to increase towards the $28,500 mark. If it surpasses this value, the price might rise significantly. At the moment, Bitcoin is showing positive signs and is priced above $27,450. Recently, after a slight decrease in its price, Bitcoin started to climb again and is now nearing the $28,000 mark.

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If Bitcoin can go beyond the $28,000 value, it might continue its upward trend, possibly even reaching up to $30,000. However, if it doesn't surpass this value, we could see a drop in its price. The primary safety net for Bitcoin's price drop lies around $27,200. If the price falls below this point, it could decrease further.

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In simpler terms, Bitcoin's price is currently at a pivotal point, and it could either climb higher or face a decline in the coming days.

(News BTC)

Conflict in Israel affects Oil

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The conflict between Israel and Hamas continued into its third day, starting when Hamas launched missiles into Israel. This situation has raised concerns that the conflict might affect neighbouring countries like Iran, which in turn could disrupt oil supply. This potential disruption has caused a rise in oil prices. Specifically, Crude Oil WTI's price increased by 3.23% since Sunday, and Brent Crude Oil's price went up nearly 3.5%. If the U.S. imposes sanctions on Iranian oil exports, the oil market might be significantly affected.

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This rising military conflict in the Middle East is causing economic ripples worldwide:

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1. Oil and Gold Prices Rise: Concerns about the Middle East conflict have resulted in increased oil prices by over $3 per barrel. Gold prices have also gone up by 1.1%.

2. US Stocks and Futures Affected: Due to the ongoing conflict, US stock futures have seen a decrease, with both S&P 500 futures and Nasdaq futures dropping.

3. Israeli Shekel's Value Drops: The value of the Israeli currency dropped to its lowest since 2015. The central bank of Israel reacted by offering to sell up to $30 billion, which helped stabilise the currency.

4. Oil Supply Concerns: There are fears that oil supplies from Iran could be affected, which could further push up Brent futures above $US100 per barrel in the short term.

5. Recent Events: Israel responded to an attack from Hamas, which resulted in significant casualties. This situation is a contributing factor to the instability in oil prices.

6. Yen Gains: In the currency market, the Japanese yen saw an increase, while the euro and dollar saw minor decreases against the yen.

7. US Interest Rates: The strong U.S. jobs report has led to predictions that interest rates may remain high. However, the Middle East events might impact any further hikes in rates by the Federal Reserve.

8. Chinese Market: Chinese blue chips dropped by 0.6% after coming back from holidays.

9. Corporate Earnings Season: The conflict might influence the corporate earnings season's start, with major companies like JP Morgan, Citi, and Wells Fargo set to report this week.

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10. Outlook: Goldman Sachs predicts modest sales growth, but also indicates that significant margin expansion might be unlikely due to various economic factors.

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In simple terms, the escalating conflict in the Middle East is causing uncertainty in global markets, affecting everything from oil prices to stocks, currencies, and future economic predictions.

(YahooFinance)

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