Bitcoin's (CRYPTO: BTC) price hit the $100,000 mark in the early hours of Saturday, despite experiencing its worst performance since 2018 with a 3.7% decline as October concluded.
This milestone comes amidst an increase in volatility and outflows from Bitcoin ETFs.
The Bitcoin has been grappling with sustained selling pressure from US-based exchanges and spot Bitcoin ETFs, even in the face of a supportive interest rate cut from the US Federal Reserve.
According to the data from Coinmarketcap, US spot Bitcoin ETFs witnessed outflows of $488 million and $191 million on Thursday and Friday respectively, indicating a trend of capital moving away from traditional financial products associated with Bitcoin.
Crypto analyst Matthew Hyland has said that the monthly Bollinger Bands have reached the most extreme levels in Bitcoin's entire history.
Also Read: Wall Street Braces For $6.6 Trillion Fed Shift Amid Bitcoin Price Surge
Bitcoin’s price is currently fluctuating within a defined range, with traders anticipating a breakout above $116,000 or below $107,000. The tightening of Bollinger Bands, a technical volatility indicator, implies that a significant move could be imminent.
Despite an anticipated interest rate cut by the US Federal Reserve, the market “shrugged off a macro tailwind” and turned cautious, as per Glassnode. Investor sentiment remains uncertain, with crypto entrepreneur Ted Pillows cautioning that a weekly close below $100,000 would confirm a downtrend.
Historically, November has been a strong month for Bitcoin, with an average gain of over 42% since 2013.
However, the current price action suggests that traders are cautious and are closely monitoring for signs of direction before making moves.
The recent volatility and ETF outflows, coupled with the milestone of reaching $100K, highlight the unpredictable nature of the cryptocurrency market and the need for investors to stay informed and vigilant.
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