Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child….
Bitcoin price has bounced back this week as demand from American investors has rebounded. The BTC/USD pair has jumped in the last three days and is hovering at its highest point since September 22.
Bitcoin has rebounded as investors moved to buy spot Bitcoin ETFs. Data compiled by SoSoValue shows that these funds have accumulated almost $1 billion in assets this week, bringing its cumulative inflows to over $57 billion.
BlackRock’s IBIT ETF has accumulated over $87.6 billion in assets after having $60.7 billion in inflows. It is followed by Fidelity, Grayscale, and Cathie Wood’s Ark Invest.
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Bitcoin price has also done well as investors move to safe-haven assets as the US government shuts down. This explains why the US dollar index has slipped and the gold price has jumped to a record high this week.
Meanwhile, crypto investors are talking about Uptober, when most cryptocurrencies do well. Historically, the fourth quarter is Bitcoin’s best period, with its average return since 2013 being over 80%.
The next key catalyst for the BTC/USD pair will be the upcoming ADP jobs report. A weak jobs report will be bullish for Bitcoin as it will boost the odds of Fed cuts.
The daily timeframe chart shows that the BTC/USD pair has rebounded in the past few days. It moved from a low of 108,237 on September 25 to 114,500.
Bitcoin price has formed a double-bottom pattern whose neckline is at $117,800. Also, it moved above the 50-day Exponential Moving Average (EMA) and the 23.6% Fibonacci Retracement level.
The BTC/USD pair has jumped above the Major S/R Pivot Point of the Murrey Math Lines at 112,500. Therefore, the most likely scenario is where the pair will rebound and initially hit the neckline at $117,800.
A move above that resistance will point to more gains, potentially to the psychological point at 120,000. On the other hand, a drop below the support at 112,000 will invalidate the bullish outlook and point to more downside.
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