- Bitcoin was experiencing a psychological surge, making a correction unlikely for now.
- However, when the fundamentals eventually take over, panic could ensue.
Fears of market overheating are rising as Bitcoin [BTC] surges past the $68K benchmark, breaking a four-month slump, even as the RSI sees a sharp decline.
As a result, trading just above this critical level may signal a potential top for BTC. If this range is confirmed as a resistance point, a price correction could be on the horizon, potentially forcing mass capitulation. However,
Bitcoin’s surge — Psychology over fundamentals
Firstly, it’s essential to consider that Bitcoin is heavily influenced by macroeconomic factors.
Currently, a confluence of events – such as the post-halving surge, the nearing end of the election cycle, the “Uptober” frenzy, and cuts in Fed rates – has combined to propel Bitcoin to $68K in just ten days without any solid pullback.
This is important because, despite key technicals pointing to a near-term reversal, these macro factors may strengthen large holders’ belief that this is a key buying zone.
In other words, big players might still see this level as an opportunity, and this psychological momentum could draw in more buyers, fueled by rising FOMO as market sentiment heats up.
Source: Glassnode
Supporting this is the rise in whale activity: addresses holding 1K–10K BTC have hit a 3-month high. The last major spike occurred alongside a 5% daily price surge, pushing BTC above $66K.
In simple terms, whales have played a key role in countering bearish pressure. Since the start of October, their activity has reinforced AMBCrypto’s initial hypothesis: macro factors are drawing in big players.
Overall, this cycle appears to be psychologically driven. So, despite bearish attempts to short Bitcoin, the likelihood of a significant correction seems slim for now.
Market buzz leading the way to $73K
Historically, the halving year has been a reliable indicator of when a bull cycle might occur. Spikes in the 30-day demand average (marked in green) have consistently coincided with Bitcoin supply cuts during halving events.
These supply reductions typically spark long-term rallies, delivering outsized returns to stakeholders.
Source: CryptoQuant
Interestingly, even if the fundamentals don’t immediately play out, the widespread anticipation alone can trigger a breakout.
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This cycle is a prime example: the market buzzed with expectations of a halving-driven rally, and true to form, Bitcoin surged to $68K in a remarkably short timeframe.
That said, if whale activity continues on this upward trend— which seems likely—Bitcoin could be set to hit its all-time high of $73K before the end of Q4.