Bitcoin Price Outlook for October — Strong Dollar and Fed Rate Hike Gives Bears the Advantage

Bitcoin Price Outlook for October — Strong Dollar and Fed Rate Hike Gives Bears the Advantage

Ten days into October, and ahead of this Wednesday’s U.S. inflation report, bitcoin prices fell to a one-week low. Prices of the world’s leading crypto asset were mostly in the red during September, trading below $20,000 for the majority of the month. As of writing, bitcoin continues to hover at these lows, with many traders wondering whether we will see any significant surge this month. Current Market Status

Last week U.S. non-farm payrolls showed that 263,000 jobs were added to the U.S. economy in September, better than the 250,000 markets had expected.

This data was positive for an already strong U.S. dollar, which has been one of the main reasons behind the recent decline in prices.

As USD gained against the majority of G-7 currencies, prices of commodities, and cryptocurrencies declined, as demand weakened.

On Wednesday, traders will be glued to their screens awaiting the release of the U.S. inflation report, which could impact the Federal Reserve’s upcoming policy decisions.

Many believe that the Fed could raise rates by an additional 75 basis points (bps), which will likely further strengthen the greenback. October Outlook

As of writing this, BTC/USD is currently trading below $20,000, at a price of $19,259.97, which is marginally below a floor of $19,300.

The move below this floor comes after another point of support was broken, with the 14-day relative strength index (RSI) now moving under its 46.30 point.

Looking at the chart, the next stop for the index appears to be 43.00, and should this mark be hit, BTC will likely be under $19,000. BTC/USD – Daily Chart

As bitcoin (BTC) continues to move lower, the 10-day (red) moving average is now starting to shift course, with a previous upwards crossover, beginning to turn bearish.

Should this momentum continue to move downward, then we could see bitcoin move toward June’s low of $17,895. Tags in this story Analysis, Bitcoin, BTC, Fed, Fed rate hike, market analysis, Markets, October, Outlook, Prices and Markets, Strong Dollar, Technical Analysis

Do you expect bitcoin to move higher, even if the Federal Reserve keeps hiking rates? Let us know your thoughts in the comments. Eliman Dambell

Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX. Biggest Movers: TRX Hits 4-Week High, MKR Remains Close to 2-Month Peak MARKET UPDATES | 8 hours ago Bitcoin, Ethereum Technical Analysis: BTC, ETH Fall to 1-Week Lows, as Markets Prepare for Big Week of Data MARKET UPDATES | 11 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleValue Held by Blockchain Oracles Slides 61% in 7 Months, Chainlink Dominates by 45% Next articleCanada’s Tiff Macklem Insists ‘Rate Increases Are Warranted,’ Canadian Columnist Says Central Bank’s Governor ‘Needs to Go’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin