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End of ‘Uptober’ targets $40K BTC price — 5 things to know in Bitcoin this week

End of ‘Uptober’ targets $40K BTC price — 5 things to know in Bitcoin this week

Bitcoin (BTC) begins the new week with comfortable highs, maintaining its trading zone above $30,000. The highest weekly close since May 2022 is a positive sign for bulls, as bid support has prevented a significant retracement after last week’s gains. The upcoming week brings potential volatility catalysts, including increasing geopolitical instability in the Middle East and the United States Federal Reserve’s decision on interest rates on Nov.1.

Despite the macroeconomic uncertainty, Bitcoin’s network fundamentals remain strong, with all-time high numbers. However, there are still concerns among some traders about a potential crash to $20,000. Analysts have differing outlooks, with some optimistic about a breakout towards $40,000, while others believe a $20,000 crash is still a possibility. The weekly close and the behavior of the Relative Strength Index (RSI) will provide insights into BTC’s price strength.

The focus shifts to the October monthly close, with market participants eager to see if the bullish momentum of “Uptober” will continue. BTC is currently trading at around $34,000, consolidating near this level. Traders like Matthew Hyland and Titan of Crypto are optimistic about BTC’s price strength, citing positive RSI behavior and a breakout towards $40,000.

While some market participants remain concerned about a potential crash to $20,000, others believe it is a worst-case scenario with a low probability of occurring. BTC must hold key levels to maintain its recent progress and avoid a rapid unwinding. The looming Federal Open Market Committee (FOMC) rate decision adds to potential volatility, with Bitcoin expected to dismiss Fed rate decisions despite rising inflation. The correlation between BTC and stocks may also be put to the test, as the market watches for a possible correction on the S&P 500.

Bitcoin’s network fundamentals continue to be strong, with mining difficulty and hash rate reaching all-time highs. The intense competition among miners reflects the complexity of mining a single BTC, highlighting the robustness of the network.

Overall, market participants are closely watching BTC’s price action and the various factors influencing it, hoping for continued bullish momentum and avoiding a significant crash.