Swissblock Says Stage Set for Altcoins to Shine

In a recent research note, Swissblock analysts highlighted the September recovery rally Bitcoin has just pulled off. Despite falling 3% in the past 24 hours

Bitcoin price fell 3% in the past 24 hours to close the month lower than many had anticipated. However, the original cryptocurrency still managed an overall 7% gain in September, having risen from just $58,000 at the start of the month.

The Federal Reserve rate cut in September helped BTC to rally, while China’s recent stimulus measures and the potential for FTX repayments are also causing optimism among crypto traders.

Swissblock added that while Bitcoin has shown “stability and strength,” the risk index pictured in the Speedometers remains unchanged at zero. The indicators also show bullish price momentum and neutral on-chain fundamentals.

This, in combination, makes the case for altcoins, the analysts highlighted.

Bitfinex Says Market Could be Overheating

In a slightly different view, Bitfinex analysts have a warning for traders.

While they noted that, historically, October is the month with the highest returns, there are some indicators that the market may have reached “a temporary equilibrium.”

Some metrics have reached key levels, while others, such as spot market buying, have flatlined, the analysts wrote.

Moreover, open interest (OI) has surged past $35 billion, which is typically a sign of “local price peaks,” the analysts added.

There are also concerns about potential market overheating, although a minor correction of 5-10% “could reset OI without disrupting the overall uptrend.”

The analysts noted that Bitcoin is consolidating between $50,000 and $68,000, which is similar to what happened in 2020. And if history is any indication, we could see a new ATH by year end.