3 reasons why your crypto investment is at risk for the rest of October
Bitcoin (BTC) and the global crypto market capitalization have moved in tandem over the past few months as the top cryptocurrency leads to greater market momentum.
The global crypto market has been in a prolonged downtrend for over 11 months now, as Bitcoin, Ethereum (ETH) and most of the top altcoins undergo massive correction.
After Bitcoin’s price hit an all-time high of $69,000 in November 2021, the larger crypto market has fallen in price in tandem with BTC.
The historic pullback has affected HODLers, traders and investors as the top crypto assets continue to hover near the lower price range.
October is unlikely to offer relief for crypto
Bitcoin, the oldest cryptocurrency with the largest market capitalization of over $368 billion, is often called the king coin of the market, and rightly so. As a first mover and the top coin, BTC price usually controls the larger market flow unless in an altcoin season or alt season.
At press time, the BTC price stood at $19,153.35, still hovering in a tight range below the $20,000 mark. With no major short-term bullish catalysts in sight, the Bitcoin price has little to no support in the event of a bearish swing.
BTC price recently dipped below a crucial demand wall around the average price of $19,357 based on Into The Block’s In and Out of Money around the price indicator.
In particular, if the BTC price continues to fall, the addresses that are now underwater may be forced to sell, further pushing the BTC price down.
For now, the next significant support for BTC will be at the $16,000 mark. However, another visit to the lower level could also trigger significant losses for the larger crypto market.
It’s Bitcoin season, for now
In an alt season, investors often expect decent gains from the massive rallies that altcoins present when BTC maintains a calm yet bullish tone. Over the past few weeks, the market has been heavily BTC-led, and an altseason does not appear to be on the cards for crypto investors, according to the altseason index.
Additionally, with the BTC Volatility Index falling to its lowest since December 2020, the exciting volatility that contributes to sudden price momentum, which often provides short-term gains for altcoins, is also missing.
All in all, with Bitcoin commanding greater market momentum as most of the top altcoins presented a high correlation with the Bitcoin price, it seems that more selling may await investors.
Additionally, sell warnings continue to emerge in the Bitcoin market from analysts, as reported in a previous article.
Thus, October could play out at the mercy of BTC, and with Bitcoin price at crucial crossroads, it could have a cascading effect on the top cryptos.
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