Crypto market rises again, why?…Will a October rally begin if Bitcoin holds $84,000?

Crypto market rebounds again…Bitcoin defends $84,000, regulatory expectations added

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The cryptocurrency market is rebounding, fueled by Bitcoin (BTC)'s strength and expectations for an improved regulatory environment in the U.S. As Bitcoin dominance surpasses 59% and leads the market, investors' attention is turning to U.S. employment figures, which will determine whether further gains will occur in October.

According to CoinMarketCap, a cryptocurrency market data aggregator, on October 1 (local time), the total cryptocurrency market capitalization increased by 0.56% over 24 hours to reach $2.89 trillion. The market showed a high correlation of 71% with gold, suggesting a simultaneous macroeconomic shift of funds towards inflation-hedging assets.

Bitcoin led the market's rise. BTC dominance climbed to 59.01%, accounting for the largest share of the total market cap increase. The market is noting that the monthly chart closed above key resistance levels and exhibits a bullish technical structure. Amid ongoing macroeconomic uncertainty, there was also a trend of investor funds concentrating on Bitcoin, which has relatively high representativeness.

Expectations surrounding the U.S. cryptocurrency regulatory environment also supported investor sentiment. As regulatory movements continued, such as the U.S. Securities and Exchange Commission (SEC) proposing new cryptocurrency custody rules on the 1st, expectations grew that the environment for institutional investor participation would become clearer. The market also saw strong performance in certain sectors, with asset classes related to 'U.S. Strategic Crypto Reserve' rising by 1.06% and the Layer 1 sector increasing by 0.83%.

Technically, the area around $2.88 trillion for the total cryptocurrency market capitalization was presented as a critical zone to determine the short-term direction. If the trend of stably surpassing the Fibonacci resistance level of $2.85 trillion continues, there is a possibility of testing the next resistance level of $2.94 trillion. For Bitcoin, it is also crucial whether it holds the $84,000-$85,000 range; if this range breaks, there is a possibility of a rapid correction along with the liquidation of leveraged positions.

The next turning point is the U.S. employment report to be released on the 2nd. The outcome of the employment figures can affect future interest rate forecasts and investor sentiment for risk assets, making it a variable that will determine the short-term direction of the cryptocurrency market. If Bitcoin maintains the $84,000 level even after the report's release, the likelihood of further market gains could increase, but there remains a risk of quickly giving back gains if concerns about interest rate hikes expand again.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*