What are the particular risk factors for Bitcoin in the coming weeks?
Bitcoin already guarantees big moves and requires the investor to be stress-resistant. This will start to increase in the coming weeks because, on Friday, November 1, the very important monthly labor figures from the US will be released. This is a gauge for the FED on its interest rate policy. The FED will meet on Nov. 7 for its interest rate decision and commentary.
briefly explaining these events; declining interest rates in the U.S. are favorable for the price of Bitcoin. To lower interest rates further, inflation may not increase. This means that the labor figures in the US should not be better than expected. In other words; if the expected increase in the average hourly wage is 0.3%, but the actual increase is 0.4%, this can be inflationary because higher wages than expected can be passed on to the prices of goods and services. Thus, for a favorable Bitcoin exchange rate, the U.S. economy mustn't overperform.
Now that we are talking about the U.S.; on November 5, there is a Presidential election there and this is the most risky factor in the coming week. Historically, the period surrounding the presidential election creates a lot of insidious volatility in the financial markets.
It's crucial to manage emotions and maintain small positions in such situations. In this way, you can withstand the possible storms.
Conclusion
Bitcoin has the wind in its sails and is technically on a breakout above the $53,000-$74,000 trading range in which it has been moving for a long time. With a closing position above $74,000, consider taking a position or extending the existing position. The price target is at least $100,000 by mid-2025. The stoploss is $52,000. Once the price closes below this, the upside scenario expires.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.