QCP Capital: Market Optimism for Q1 Breakthrough is Fading

Shifting Market Sentiment

During the Asian trading session, Bitcoin, gold, and silver rose in tandem as the dollar sharply declined. However, as European markets opened, Bitcoin quickly pulled back, failing to hold above the critical resistance level.

Drivers Behind Short-Term Volatility

This movement occurred alongside remarks from Powell, which were interpreted by some as signaling potential threats to the Fed's independence. Although Bitcoin briefly acted as a hedge against fiat system risks, the follow-through was notably weak.

Structural Resistance Appears

Since October 10, Bitcoin has repeatedly hit structural resistance levels. The fading optimism around a Q1 breakout reflects growing market caution and a lack of sustained narrative support.