Ten days into October, the bitcoin price fell to a one-week low ahead of this Wednesday’s US inflation report. The price of the world’s leading crypto asset was mostly in the red during September, trading below $20,000 for most of the month. At the time of writing, bitcoin is hovering at these lows and many traders are questioning whether we will see a major surge this month.
Current Market Conditions
Last week, U.S. nonfarm payrolls added 263,000 jobs in September, beating market expectations of 250,000.
This data was positive for the already strong US dollar, one of the main reasons for the recent price decline.
As the U.S. dollar strengthened against most of the G7 currencies, demand weakened and commodity and cryptocurrency prices fell.
On Wednesday, traders will be glued to their screens, awaiting the release of the U.S. inflation report, which could influence the Federal Reserve’s future policy decisions.
Many believe the Fed could raise rates by an additional 75 basis points (bps), which would likely make the greenback even stronger.
October Outlook
As of this writing,BTC/USD is currently at $19,259.97, just below $20,000 and just below the $19,300 lower bound.
This move below the floor comes after another point of support was broken, with the 14-day Relative Strength Index (RSI) currently moving below its 46.30 point.
Looking at the chart, the next stop on the index appears to be 43.00, and if this mark is hit,BTCwill likely drop below $19,000.
As Bitcoin (BTC) continues to move lower, the 10-day (red) moving average has begun to turn bearish, with previous upward crossovers now on course starting to turn around.
If this momentum continues down, we could see bitcoin move toward the June low of $17,895.
Image credit: Shutterstock, Pixabay, Wiki Commons
