Bitcoin (BTC) Price Action Sparks Mixed Sentiment Among Traders as BTC/USD Pair Revolves Around $68K

Bitcoin traders find themselves on edge as BTC prices surged to $68,393, reaching an 11-week high. However, the BTC/USD pair remains around $67,993 as of press time

Surging to an 11-week high, Bitcoin prices reached $68,393 during the morning session on October 21. Yet, at the time of writing, mixed U.S. unemployment data influenced the BTC/USD pair, keeping it at around $67,993.

The unemployment data revealed lower-than-expected initial jobless claims but ongoing claims that were slightly higher than anticipated. This complex data set created market suspense, particularly concerning how the Federal Reserve will handle upcoming rate cuts.

According to CME Group’s FedWatch Tool, the likelihood of a 0.25% rate decrease in November remains high. However, traders' confidence in broader monetary easing has cooled.

In the absence of clear macroeconomic drivers, traders are focusing on the upcoming U.S. presidential election, which coincides with the Fed's November meeting. This intersection could lead to heightened volatility in Bitcoin and altcoins like XRP, encouraging traders to hedge their bets on price movements.

Bitcoin Demand Surges as Traders Shift Focus to Market Fundamentals

On-chain data indicates a surge in Bitcoin demand, suggesting the potential for further price increases. A weekly report from CryptoQuant reveals that Bitcoin demand reached 177,000 BTC. Historically, when demand reaches this level, as observed in 2020 and 2021, the token price tends to follow an upward trajectory.

The recent increase in demand coincides with large investors, known as "whales," continuing to accumulate tokens, adding a bullish tone to the market. The report highlights that whale holdings, excluding exchanges and mining pools, now total 670,000 BTC, exceeding the levels seen last year. Moreover, these holdings are accumulating faster than the 365-day moving average, a trend that could further influence the cryptocurrency's price action.

This accumulation pattern, combined with the token's seasonal tendency to perform well in Q4 during halving years, creates anticipation for a potential surge towards new all-time highs. In similar years—2012, 2016, and 2020—Bitcoin price increased by 9%, 59%, and 171%, respectively, during this period.

Mixed Sentiment Among Traders as Bitcoin Price Action Pauses

Surging to an 11-week high during the morning session, Bitcoin prices reached $68,393. However, at the time of writing, mixed U.S. unemployment data influenced the BTC/USD pair, keeping it at around $67,993.

The unemployment data revealed lower-than-expected initial jobless claims but ongoing claims that were slightly higher than anticipated. This complex data set created market suspense, particularly concerning how the Federal Reserve will handle upcoming rate cuts.

According to CME Group’s FedWatch Tool, the likelihood of a 0.25% rate decrease in November remains strong, but traders' confidence in broader monetary easing has cooled.

In the absence of prompt macroeconomic drivers, traders are turning their attention to the U.S. presidential election, which coincides with the Fed's November meeting. This intersection could create heightened volatility in Bitcoin and altcoins like XRP, drawing traders to hedge their bets on price movements.

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