Key Points
- Bitcoin’s surge past $68K may be driven more by psychological factors than fundamentals.
- Despite bearish attempts and potential resistance point, a significant correction seems unlikely due to market buzz and whale activity.
Bitcoin’s recent surge, breaking past the $68K benchmark, seems to be driven more by psychological factors than fundamental ones. This comes despite a sharp decline in the Relative Strength Index (RSI) and fears of market overheating.
Psychology Over Fundamentals
Bitcoin is significantly influenced by macroeconomic factors. A combination of events such as the post-halving surge, nearing end of the election cycle, “Uptober” frenzy, and cuts in Federal rates has propelled Bitcoin to $68K in just ten days without a significant pullback.
Despite technical indicators pointing towards a near-term reversal, these macro factors may strengthen the conviction of large holders that this is a key buying zone. This belief, coupled with rising FOMO, could draw in more buyers. The rise in whale activity, with addresses holding 1K-10K BTC hitting a 3-month high, supports this theory.
Market Buzz and Whale Activity
Historically, the halving year has been a reliable indicator of when a bull cycle might occur. Spikes in the 30-day demand average have consistently coincided with Bitcoin supply cuts during halving events, sparking long-term rallies. The anticipation alone of these events can trigger a breakout.
The current cycle is a prime example of this, with the market buzzing with expectations of a halving-driven rally. As a result, Bitcoin surged to $68K in a remarkably short timeframe. If whale activity continues on this upward trend, Bitcoin could potentially hit its all-time high of $73K before the end of Q4.