Currently, many are wondering whether the crypto cycle, such as Bitcoin and the latest altcoins, has peaked and whether it is time to sell their assets to buy back at a lower price, or whether this dip is a good buying opportunity.

According to analyst Satoshi Stacker, one of the most important macroeconomic factors affecting both crypto and traditional markets is the anticipated interest rate cut from the Federal Reserve (FED).

Although Fed Chair Jerome Powell and other officials have said their decisions will depend on upcoming data, they have made some optimistic comments following May and June data that showed a disinflationary trend.

Market Sentiment

The analyst highlights a major bullish catalyst that has received little attention: FTX creditors are expected to receive about $16 billion in cash payments by the end of this year.

It is expected that most of these funds will be reinvested in crypto, potentially driving up the market price. Even if only a small portion of these funds re-enter the market, it could generate billions of dollars of buying pressure, especially in altcoins that require less capital for significant price movements.

Satoshi Stacker also said that historical data shows a seasonal pattern with Q4 typically providing the best returns for Bitcoin. This year’s US election adds another layer of seasonality, as traditional markets tend to experience a pre-election dip due to uncertainty, followed by a substantial post-election rally.

A Look at Bitcoin Price Action

According to analyst Josh from Crypto World, Bitcoin is currently experiencing a bullish divergence with its price facing resistance. Despite some short-term fluctuations, the overall bullish trend in Bitcoin remains strong, and the close of the 4-day candle is crucial to confirm any trend reversal. Historical trends show the importance of waiting for a confirmation signal before concluding that a bull market is over.

The bullish divergence on the daily chart suggests a temporary relief from the bearish trend, but does not necessarily indicate a complete reversal. Key support levels are at $56-57K and $51-53K, while resistance is between $60K and $74K. Recent market activity shows Bitcoin moving up slightly to liquidate positions, with liquidity levels just below $57K and around $60K.

With all these factors, Q4 is expected to be an interesting and potentially profitable period for crypto investors, both in Bitcoin and altcoins.