Bitcoin: BTC is increasing and the next stop is above $24,500 or ?
After weeks of moving sideways at $19,500, BTC has been trending up recently. Let's analyze to see if it crosses the $24,500 mark in the next few weeks
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Bitcoin is going up
Bitcoin (BTC) has just ended a very interesting week. That's when October's crypto drop continued to enhance the bearish performance since mid-August. As such, the recent rally has relieved pressure from the market plunge and created euphoria for the crypto market. last week's rally.
But can the bulls hold this advantage for longer? Let's find out together.
Yes, the Bitcoin price increased by more than 10% last week, but its volatility has decreased significantly, especially in the past three days. But can the rally continue or will we see selling pressure return? Well, here are some observations to help provide a visual look at where the market could go when considering the current range.
According to a CryptoQuant analysis by TariqDabil (pseudonym), the recent rally was driven by retail buying pressure. In other words, analysts say that participation from whales and institutional investors is significantly lower.
BTC whales are sleeping
This analysis may be correct because the ultimate uptrend is not characterized by a long daily bar indicating strong buying pressure. This does not necessarily mean there is no whale activity. In fact, some bullish pressure was seen from addresses holding 10,000 to 100,000 BTC throughout the month. Last week's performance shows an increase in buying pressure from 100 to 100,000 addresses.
Addresses holding between 100 and 1,000 coins also saw net inflows this week. This shows that whales have made a profit when the price rises. Addresses between 100,000 and 1 million saw a large outflow on October 25. Such whales may represent exchange addresses.
The above analysis also shows that the accumulation in the main directions is slowing down. In addition, foreign exchange reserves have also increased in the past seven days. This shows that many traders already have their bitcoins on exchanges. Furthermore, it also shows that traders may not have enough confidence in the bulls.
At press time, the long title Bitcoin SOPR is worth 0.68. That means sellers of long-term debt are still on the losing side.
All of the above is a clear sign of expectations for another drop. This means that Bitcoin can be destroyed by staying in the lower range for an extended period of time. A look at its price action shows that it is encountering resistance in the $20,600 range. The same range has acted as support and resistance in recent months.
It would be difficult for Bitcoin to sustain its advantage in the short term without institutional and whale demand. After that, increased selling pressure is likely to spur another bearish outcome. On the other hand, investors should watch for the return of bullish demand from whales and institutions. This will ensure the continuation of the upward momentum.
Oct 31, 2022