Categories: Bitcoin

Bitcoin’s path to $ 65,000 is very bumpy

The rapid bull run let Bitcoin gain 25% within a week and sparked market-wide euphoria. After the first week of the final quarter of 2021, BTC hit the $ 55,000 mark and hovered briefly above it on October 6, 2021. With a gradually higher dominance rate in the last few days paired with solid price gains, Bitcoin is further solidifying its position in the market.

Bitcoin price 4-hour chart | Source: Tradingview

The rally accelerated further when billionaire George Soros’s Soros Fund Management confirmed it was trading in BTC. It seems that with the price and popularity of Bitcoin, institutions are becoming more interested in the digital asset.

On the other hand, the market has not been able to sustain a strong trend for very long last month. This leads to considerable skepticism about the current rally by BTC. However, there are signs that point to an explosive development in the near future.

Bullish divergence confirms price move higher

When the price hit the critical level of $ 55,000 for the first time since May 10, Bitcoin’s NVT model shows that October was the first month the index had seen a bullish divergence since February of this year. This represents a strong and positive upward trend.

NVT. Token circulation | The source: Sanbase

In addition, data from IntoTheBlock indicates that IOMAP, when Bitcoin for the first time since the 7th, bought 212,000 BTC over 353,780 addresses.

The source: IntoTheBlock

In addition, it is also the first time that Bitcoin Network has sustained a large percentage of circulating supply (around 85.25 percent) for more than 3 months. In particular, BTC’s share of the 3-month HODL supply was at an all-time low of 14.75% on October 6, which also indicates supply compression.

Bitcoin 3 Month HODL Delivery Percentage | The source: Dylan LeClair

One long-term upward trend for BTC is that coins have been pouring out of the exchanges continuously over the past month, which has resulted in a tightening of liquidity supply. On the price front, the stochastic RSI had its second bullish monthly crossover between the 20 and 80 lines this cycle.

As reported by Bitcoin Magazine, it is an extremely bullish crossover that has only occurred two more times in the past: September 2013 and May 2012. In 2013, it drove the BTC price by 2,700%, while in 2012 it drove has increased by more than 770%.

Stochastic RSI crossover | The source: TechDev

The warning signs remain

While Bitcoin’s price action looks pretty bullish in October, an interesting trend to note is that funding rates are getting too positive, suggesting that the market is expecting another uptrend. This can lead to mass selling of positions and the beginning of a downward movement.

In addition, the classic euphoria setup has made investors extremely greedy for BTC. So it wouldn’t be surprising if the price were corrected and retested $ 50,000 as a support. Analyst TXMC noted the same thing, stating that a consolidation is expected within days when BTC drops nearly $ 50,000. It looks like some consolidation will occur as the path to the new ATH is established and the rate of increase will slow down.

Leah Wald, CEO of Valkyrie Investments, sees $ 50,000 as vital support for the bull run for the rest of the year.

“The real key psychological hurdle is the $ 50,000 level … If BTC can break through and hold $ 50,000, we expect this rally to bring them close to the fourth quarter high.

But if BTC continues to encounter resistance at $ 50,000 and does not break through or establish support, analysts believe it will likely drop back to $ 45,000 and consolidate to $ 50,000 before another rally.

However, Wald said she cannot accurately predict the price of BTC if it holds the $ 50,000 support.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to AZCoin News

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

3 minutes ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

1 hour ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

3 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

5 hours ago

This website uses cookies.