Key Points
- Bitcoin’s surge past the $68K mark raises concerns about market overheating and potential price correction.
- The current cycle appears to be psychologically driven, with macroeconomic factors influencing Bitcoin’s rapid rise.
Bitcoin has been riding a wave of psychological momentum, making a price correction seem unlikely in the immediate future. However, a shift could occur once fundamentals take precedence, potentially leading to widespread panic.
The fear of the market overheating is growing as Bitcoin surges past the $68K mark, ending a four-month slump. This surge comes despite the RSI witnessing a sharp drop.
Psychology Over Fundamentals
One must remember that Bitcoin’s price is heavily influenced by macroeconomic factors. A series of events, including the post-halving surge, the nearing end of the election cycle, the “Uptober” frenzy, and cuts in Fed rates, have collectively pushed Bitcoin to $68K in just ten days without any significant pullback.
Despite technical indicators suggesting a near-term reversal, these macro factors might strengthen the conviction of large holders that this is a key buying zone. This belief could potentially draw more buyers into the market, fueled by rising FOMO as market sentiment intensifies.
Market Buzz and Whale Activity
Supporting this theory is the increase in whale activity. Addresses holding between 1K–10K BTC have reached a three-month high. The last major spike coincided with a 5% daily price surge, pushing Bitcoin above $66K.
Whales have been instrumental in countering bearish pressure. Their activity since the start of October has reinforced the initial hypothesis that macro factors are attracting big players.
Historically, the halving year has been a reliable indicator of when a bull cycle might occur. Spikes in the 30-day demand average have consistently coincided with Bitcoin supply cuts during halving events.
Even if the fundamentals don’t immediately play out, the widespread anticipation alone can trigger a breakout. If whale activity continues on this upward trend, Bitcoin could potentially hit its all-time high of $73K before the end of Q4.
