Analytics: Market Outlook and Forecasts

📈 WHAT HAPPENED?

On Friday evening, October 10, the cryptocurrency market experienced one of the largest crashes in history. It was also the largest cascade of futures liquidations ever. A total of about $20 billion was liquidated in one day. Bitcoin dropped by 16% in the moment, and many altcoins fell by 20% to 90%.

The main reason was the announcement by US President Donald Trump about increasing tariffs on goods imported from China. The "domino effect" was amplified by the failure of the Binance exchange, which triggered a new cascade of liquidations.

According to the chart, Bitcoin broke through most of the support zones, but the decline stopped and the price closed in the range of $116,000-$111,600. This is where the buyer showed strength and absorbed the majority of the seller's activity.

💼 WHAT WILL HAPPEN: OR NOT?

After significant corrections, bitcoin often enters the sideways phase for 1-2 weeks. However, there are already signs of recovery.

At the moment, we’re trying to gain a foothold above the volume zone of $113,700-$110,600 (maximum volumes), there are practically no significant volumes above it that could provide resistance. It’s difficult to say how the price will react in this range. But, most likely, we’ll see another wave of sales in the near future — there are no obvious signs of a reversal yet.

If there is a reaction from the mentioned zone, a long on recovery with a target range of $120,900-$124,000 (volume zone) can be considered.

Buying zone:
$113,600–$110,600 (high-volume area)

Selling zone:
$120,900–$124,000 (volume zone)

📰 IMPORTANT DATES

Macroeconomic events this week:

• October 14, Tuesday, 6:00 (UTC) — publication of the German Consumer Price Index for September;
• October 14, Tuesday, 16:20 (UTC) — speech by Federal Reserve Chairman Jerome Powell;
• October 15, Wednesday, 12:30 (UTC) — publication of the US Core Consumer Price Index for September and in comparison with September 2024;
• October 16, Thursday, 6:00 (UTC) — publication of the UK's GDP for August;
• October 16, Thursday, 12:30 (UTC) — publication of the volume and core index of retail sales, the US producer price index for September, as well as the number of initial jobless claims in the US and the Philadelphia Fed's manufacturing activity index,
• October 17, Friday, 9:00 (UTC) — publication of the Eurozone's consumer price index for September;
• October 17, Friday, 12:30 (UTC) — publication of the average hourly wage, changes in the number of non-agricultural workers, and the unemployment rate in the United States for September.

*This post is not a financial recommendation. Make decisions based on your own experience.

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