Weekend Bounce Gives Bulls Breathing Room

Bitcoin had a green weekend, which was much needed after five straight red days from Monday through Friday. After dropping to a low of $103.5K on Friday, we saw a modest bounce on Saturday, followed by more constructive price action overnight. This shift came off the back of two key developments: improving geopolitical sentiment between the US and China and fresh regulatory momentum in Japan.

Overnight, Donald Trump announced he will meet with President Xi in South Korea on October 31. Markets welcomed the news, as any easing of geopolitical tensions tends to boost risk-on appetite, crypto included. With the FOMC interest rate decision set for October 29 and now this meeting on the 31st, the final stretch of the month is shaping up to be a critical one. That said, in crypto, a week is a lifetime and much can change before then.

On the regulatory front, Japan’s Financial Services Agency (FSA) is reportedly preparing to review policies that would allow banks to acquire and hold cryptocurrencies for investment purposes. This would mark a significant shift in stance, as existing guidelines introduced in 2020 effectively barred banks from holding crypto due to volatility risks.

Now the big question is whether Bitcoin can build on this positive momentum or if this is just another short-lived rally before the bears reassert control. At this stage, the latter still feels more likely. While the bounce is encouraging for bulls, it needs to be sustained before we can start talking about higher price targets.

Stormrake Spotlight: Hyperliquid (HYPE) ($36.97)

HYPE tracked Bitcoin over the weekend, closing two green days and gaining over 5%. A welcome break for bulls, but the broader trend remains bearish. As with most altcoins, HYPE will follow Bitcoin’s lead. Until BTC stabilises, HYPE remains in a long-term accumulation zone rather than showing signs of a breakout.

BTC/USD Key Levels and Price Action:

The weekend bounce saw bulls briefly reclaim momentum and test a key resistance at $109.5K this morning, which was rejected almost immediately. The focus now shifts to holding above the key moving averages. If these levels fail to hold, bears will likely regain control and push prices lower.

BTC Total ETF Flows for 19 Oct: (data not available at the time of writing)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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