Bitcoin holds the 200-weekly moving average at $65,500, catching the attention of traders. Crypto blogger Kdub warns that Bitcoin could drop to $48,000 and urges caution for buyers considering October entries.
Current Market Position: $65,500 as a Pivotal Level
Bitcoin is currently holding at the 200-weekly moving average of $65,500. Market participants have long viewed this as a prime area to buy. Kdub of Crypto Zombie suggests that if Bitcoin manages to stay above the average, a run to $70,000 could be possible. It is easy to see why this support matters; in past cycles, it has been the site of accumulation and reversals. Yet there is caution in the market, with bulls and bears locked in a contest over what has become a pivotal level.
Potential Downside: CVDD Indicator Signals Caution
There is no shortage of optimism about Bitcoin’s ability to defend the 200-weekly moving average, but Kdub urges a look at the CVDD indicator for a more sobering view. The Cumulative Value Days Destroyed has been a reliable barometer in Bitcoin’s past and so far it has not given a buy signal. According to its reading, a pullback to $48,000 is not out of the question before any real recovery begins. For that reason, Kdub advises caution; a steeper correction may be coming, making it unwise to open new positions in October.
Market Sentiment and Regulatory Developments
For the most part, the world’s view of Bitcoin is still positive, despite the market having to endure a bearish spell. Kdub points out that short-term price action can be swayed by outside forces, not least of which are the regulatory discussions underway in the United States. Of special interest is the forthcoming session where the US President and senators will put the Clarity Act on the table. It is easy to see why a degree of caution is warranted at present; any move on the legislative front has the potential to alter the narrative and put an immediate dent in Bitcoin’s price trajectory.
Source — Crypto Zombie: https://www.youtube.com/watch?v=AS-BLgtBkks