(MENAFN- Crypto Breaking) October proved to be a challenging month for Bitcoin, marking its worst performance since 2018 amid increasing trader caution. Despite some macroeconomic tailwinds, rising ETF outflows and waning institutional demand have contributed to a subdued market sentiment. As Bitcoin prepares for November - traditionally a bullish period - analysts warn that record volatility may be on the horizon, with on-chain data signaling potential shifts in price dynamics.

• Bitcoin experiences its worst October since 2018, with traders growing cautious on the outlook.
• ETF outflows resume, indicating rising sell pressure despite favorable macroeconomic conditions.
• Market volatility is expected to increase, as suggested by Bollinger Bands data.
• Institutional demand appears to weaken, impacting Bitcoin's price resilience.
• November historically marks strong monthly gains for Bitcoin, with potential for increased volatility.

Bitcoin (BTC ) hovered around $110,000 on Saturday as traders remained bearish following a lackluster“Uptober” that failed to meet expectations. Despite some recovery from losses earlier in the week, the overall sentiment remains cautious.

BTC /USD one-hour chart. Source: Cointelegraph /TradingViewBitcoin demand weakness ends October on a cautious note

Recent data from Cointelegraph Markets Pro and TradingView reveal that Bitcoin's price is attempting to recover from Friday's declines, driven by persistent sell pressure throughout the week across US exchanges and Bitcoin ETFs.

On-chain analytics by Glassnode indicate that ETF net outflows point to increased sell pressure from traditional finance investors, signaling weakened institutional interest. Friday's outflows reached $191 million, following Thursday's $488 million exodus, further emphasizing cautious sentiment among investors.

US spot Bitcoin ETF net flows (screenshot). Source: Farside Investors

Despite a rate cut announced by the U.S. Federal Reserve, market participants have largely shrugged off the macroeconomic tailwinds, with Glassnode noting that the hawkish tone for December has quelled optimism. As one analyst observed,“The initial rally faded as traders moved back into cautious mode, a shift reflected clearly in Bitcoin's options market.”

Crypto investor and entrepreneur Ted Pillows described the current market as“time-based capitulation” for Bitcoin, warning that a weekly close below $100,000 would solidify a downtrend. He emphasized that sustained consolidation above this level is necessary for a reversal, with key levels of interest at $107,000 and $116,000.

BTC/USDT two-day chart. Source: Ted Pillows/X

Trader Daan Crypto Trades highlighted that a decisive move in Bitcoin's range hinges on breaking above $116,000 or below $107,000-levels likely to signal a new directional trend. Currently, the market is characterized by sideways movement, with traders waiting for confirmation before committing to new positions.

Volatility set to increase as Bollinger Bands signal

October's negative performance, with Bitcoin dropping 3.7% - its worst October since 2018 - has traders eyeing potential volatility. Data from Another red October underscores the challenging environment ahead of November, which historically provides strong gains for Bitcoin, averaging a 42.5% increase since 2013, according to CoinGlass.

BTC/USD monthly returns (screenshot). Source: CoinGlass

Market analyst Matthew Hyland pointed out that the Bollinger Bands volatility indicator is currently at unprecedented levels for Bitcoin, suggesting that significant price swings may be imminent. The indicator's extreme measurements have prompted warnings from veteran markets observer John Bollinger, who suggested that traders should soon be prepared for increased volatility across Bitcoin and other major cryptocurrencies.

BTC/USD one-month chart with Bollinger Bands data. Source: Matthew Hyland/X

As the crypto markets brace for potential turbulence, traders remain focused on key resistance and support levels, awaiting clearer signals that will dictate the next major move in the evolving landscape of digital assets.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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