A quick Bitcoin bull run caused the top coin to rise 25.60% in a week and sparked market-wide euphoria. One week after the end of the last quarter of 2021, BTC was already trading at almost $ 55,000 and briefly oscillated above the level on October 6, 2021. With the increasing Bitcoin dominance in the last few days alongside solid price gains, the movement of the top coin is his Market position further strengthened.

The rally accelerated further when Soros Fund Management, led by famed investor George Soros, confirmed it is the top coin. Apparently with Bitcoin’s price and popularity are rising, institutional opponents of cryptocurrencies have slowly warmed up to the digital asset.

However, in the past month, the market has failed to sustain a strong trend for too long, giving way to considerable skepticism about the current rally by BTC. Nevertheless, there were signs that indicated that the royal coin was being blown by explosives.

Bullish divergences confirm upward price movements

Since the crucial $ 55,000 mark for the first time since the 10th, this represented a big, positive move up in price.

Circulation of NVT tokens | Source: Sanbase

Also data from IntoTheBlock noticed that Bitcoin for the first time since the 7th. In this area, over 353.78K addresses had previously bought 212,000 BTC.

Additionally, for the first time ever, Bitcoin Network held such a large percentage of circulating supply (around 85.25%) over three months. In particular, BTC’s three-month HODL supply percentage was at an all-time low of 14.75% on October 6, which also indicated a supply shortage.

Percentage of Bitcoin’s three-month HODL delivery | Source: Dylan LeClair

A long-term upward trend for the top coin was that coins kept flowing out of the exchanges over the past month, which made the supply of liquidity scarce. On the price front, Bitcoin had its second bullish monthly stochastic RSI crossover between 20 and 80 this cycle.

This was a particularly bullish cross that has happened only two more times in the past – one in September 2013 and another in May 2012. In 2013, it pumped the price of BTC by 2700%, while the 2012 cross drove the price by 770%. pumped.

Stochastic RSI crossover | Source: TechDev

Warning signs are still there

While Bitcoin price action looked more bullish in October, an interesting trend was to note that funding rates were gradually getting too positive, suggesting that the market is expecting another uptrend. This could lead to a mass dissolution of positions and initiate a downward movement when the former begins.

In addition, the classic euphoria setup has driven investors towards BTC with extreme greed. So it won’t be surprising if BTC sees a small correction and retest of $ 50,000 as support. Pseudonymous analyst TXMC also noted the same thing, figuring that consolidation could stretch over several days if BTC dips near $ 50,000. It looks like Bitcoin’s path to a new ATH is set, but some consolidation could be speed-breaker on the way.

Source link


Please enter your comment!
Please enter your name here