Thursday , November 21 2024
Home / Bitcoin (BTC) / 3 Reasons Why Bitcoin (BTC) Could Bounce This Month: Details

3 Reasons Why Bitcoin (BTC) Could Bounce This Month: Details

Summary:
TL;DR Despite recent volatility, several indicators suggest that BTC might be entering a bullish phase. On the other hand, one essential element hints at an intensified pullback in the short term. ‘Uptober’ Still in the Cards? Bitcoin (BTC) has passed through severe volatility since the start of October, performing worse than some expected. After all, the ongoing month has been a historically positive period for the entire cryptocurrency industry, thus known across the community as “Uptober.” Currently, BTC trades at just south of ,000, a 5% decline on a 10-day scale. However, some essential metrics suggest that a resurgence could be on the horizon. BTC Price, Source: CoinGeckoAccording to CryptoQuant, BTC exchange outflows have predominantly surpassed inflows in the

Topics:
Dimitar Dzhondzhorov considers the following as important: , , , , ,

This could be interesting, too:

Dimitar Dzhondzhorov writes Top Ripple (XRP) Price Predictions as of Late

Wayne Jones writes VanEck Analyst Predicts Successive All-Time Highs for Bitcoin in Coming Months

Dimitar Dzhondzhorov writes Important Binance Announcement Affecting Certain XRP, ADA, and DOGE Traders: Details

Jordan Lyanchev writes Bitcoin’s Peak Above K, Ripple’s Price Explosion, Meme Coin Madness: Your Weekly Crypto Recap

TL;DR

  • Despite recent volatility, several indicators suggest that BTC might be entering a bullish phase.
  • On the other hand, one essential element hints at an intensified pullback in the short term.

‘Uptober’ Still in the Cards?

Bitcoin (BTC) has passed through severe volatility since the start of October, performing worse than some expected. After all, the ongoing month has been a historically positive period for the entire cryptocurrency industry, thus known across the community as “Uptober.”

Currently, BTC trades at just south of $61,000, a 5% decline on a 10-day scale. However, some essential metrics suggest that a resurgence could be on the horizon.

BTC Price
BTC Price, Source: CoinGecko

According to CryptoQuant, BTC exchange outflows have predominantly surpassed inflows in the last week. As observed in the chart below, the past few days witnessed the emergence of huge red candles, which signal a potential shift from centralized platforms toward self-custody methods. This could be viewed as a bullish sign since it reduces the immediate selling pressure. 

BTC Exchange Netflow
BTC Exchange Netflow, Source: CryptoQuant

Next on the list is the BTC MVRV (Market Value to Realized Value), which recently dropped under 2. Readings below that mark typically indicate that the market is in an accumulation phase, signaling potential buying opportunities.

Last but not least, we will touch upon Bitcoin’s Relative Strength Index (RSI). The momentum oscillator, which measures the speed and change of price movements, neared the bullish zone of 30 on October 9 and is currently positioned at around 38. As of the moment, it flashes the “close to buy” signal.

Something for the Bears, too

Contrary to the aforementioned factors suggesting a possible price revival, there is one hinting at the opposite scenario. According to X user Ali Martinez, this is the increased activity from whales who have sold or redistributed 30,000 BTC in the past 72 hours (equaling almost $1.9 billion).

The development increases the circulating supply of the primary cryptocurrency, which could result in a plunging valuation (assuming demand doesn’t catch up with the pace).

Additionally, the actions of such large investors can trigger panic among smaller players, causing them to dump their holdings and accelerate the pullback.

Leave a Reply

Your email address will not be published. Required fields are marked *