Bitcoin “almost USD 90,000” – 5 things to watch this week

Bitcoin has entered the new week and is still holding $ 60,000 as support despite the retracement from the recently formed ATH.

After the typical downward move on Sunday, the bulls regained control and prevented BTC from slipping below $ 60,000.

BTC price 4-hour chart | Source: TradingView

So far, however, neither April nor October all-time highs have been retested, so investors are excited to see where Bitcoin is likely to go.

Many still have very high expectations of the crypto king – up to $ 300,000 in the coming months and even the upward trend will continue well into 2022.

Here are 5 factors to consider when predicting BTC price development in the days to come.

“Unlimited spot bid”

Global markets paint a great picture as US stock futures remain flat prior to opening.

Inflation continues to escalate, and even the Federal Reserve admits it could stay higher over the long term. In addition, news of the taxation of unrealized income is causing heated debates in the media.

However, apart from the skyrocketing commodity price, the picture is even better when it comes to Bitcoin price triggers, while BTC has long been known as an asset disconnected from macro movements.

Ahead of the third Bitcoin Futures Exchange Traded Fund (ETF) launch today, more attention is being paid to gold, traditional ETFs and the threat that Bitcoin poses to them.

CEO Charles Edwards of the investment firm Capriole comment last week:

“If the CME (Open Interest) OI moves up a few places to the world’s No. 1 in a few days, this week is a measure of massive institutional interest. This is a big change. “

Bitcoin Futures Open Interest Chart | Source: Charles Edwards

Edwards was before speak that futures ETFs will offer “unlimited spot bids” on Bitcoin to address concerns about the overall effectiveness of the instrument.

On-chain analytics firm CryptoQuant’s CEO Ki Young Ju added on the volume of futures contracts, the massive purchases associated with each price challenge of $ 60,000.

Where is the main level of support for $ BTC?

Worth $ 840 million #Bitcoin was bought through market orders in the futures markets whenever the price was around $ 60,000 yesterday.

Taker Buy / Sell Volume helps figure out the key support / resistance levels.

Set a notification here????https://t.co/URSHem9Swb pic.twitter.com/ygh4KQAOVg

– Ki Young Ju (@ki_young_ju) October 25, 2021

“Where is the main support for BTC? $ 840 million in Bitcoin was market-ordered on the futures market as the price approached $ 60,000 yesterday. The takers buy / sell volume helps to find important support / resistance levels. “

Follow the 2017 bull run

Typically, a weak Sunday turned into a bullish 2nd this week as Bitcoin climbed above $ 63,000.

Last week, the price fell 10% from the new ATH of $ 67,100 and April high of $ 64,900, with little support.

However, with bearish predictions surfacing, Bitcoin has no intention of abandoning the new trading area, despite analysts suggesting that $ 50,000 is still a solid price action.

The week-end failed to challenge the massive buying wall of just under $ 60,000 and provided further support.

So far, so good. #Bitcoin on the way to $ 90,000. pic.twitter.com/JxDIgUEejF

– Michaël van de Poppe (@CryptoMichNL) October 25, 2021

“So far, it’s good. Bitcoin is about to hit $ 90,000.”

For Van de Poppe, BTC should hit this level by the end of the first quarter of next year, as opposed to six-digit estimates in a much shorter timeframe.

October is expected to end at around $ 63,000 and break new ground in the final 2 months of 2021.

For renowned analyst TechDev, Bitcoin is still repeating the 2017 price action with almost uncanny accuracy. This would also indicate significantly higher prices before the end of the year – in line with the peak of the recession in December 2017.

After 140 days, a slightly flattened fractal continues to forecast day-to-day business in 2017 #BTC Price action better than most short term TAs I’ve seen. pic.twitter.com/93l7RODsMU

– TechDev (@ TechDev_52) October 25, 2021

“After 140 days, the 2017 fractal continues to forecast daily BTC price action better than most of the short-term analysis I’ve seen.”

VanEck-ETF launched

Another reason to attract institutional investment is that we have another Bitcoin ETF.

This time, thanks to years of attempts to bring a Bitcoin ETF product to market, VanEck is almost a household name in the crypto world.

Similar to last week’s offerings, VanEck’s Bitcoin Strategy ETF (XBTF) will include Bitcoin futures as an underlying asset and join the battle before authorities make a decision on a physical ETF next month.

XBTF will have a management fee of 0.65% and will trade as the third Bitcoin ETF futures in the US market.

VanEck also plans to launch a physical ETF. The Securities and Exchange Commission (SEC) will decide on her fate on November 14th.

Despite mixed opinions on the overall usefulness of futures ETFs, the groundbreaking US launch of ProShares last week saw near-unprecedented growth.

Meanwhile, the buzz has waned a bit when Valkyrie’s second ETF was launched.

“We’re seeing Bitcoin trading like gold,” said Mike McGlone, chief commodities strategist at Bloomberg comment on the launch date after the second fund.

He recalled the time when gold first had an ETF in the US in the early 2000s, which made a lot of people rich.

Back then, the first gold ETF, SPDR Gold Trust (GLD), like ProShares, raised over $ 1 billion in the first three trading days in November 2004.

Bitcoin ETF Approval Process | Source: Arcane Research

No sell-offs on major exchanges

Exchanges take center stage in current market conditions as the macro trend to reduce bitcoin supply slows.

During bull runs, the massive influx of BTC on the exchanges tends to signal the price point at which a high volume is to be sold, and thus possibly the highest price.

However, the amount of Bitcoin held on the exchanges has steadily declined so far and has accelerated particularly since the slump in May.

According to the latest data, it looks like Binance will stand out from other major platforms this month as a large amount of BTC is pouring into its order book while the rest continue to reduce reserves.

Bitcoin price race at all-time highs has generally resulted in a slight increase in foreign exchange reserves, but not significantly when looking at the general downtrend.

BTC reserve chart on the stock exchange | Source: Bybt

Typically, Hodlers are less interested in selling shortly after the price hits ATH, and institutional buyers do not plan to sell immediately after exposure.

There was also particularly active shopping on the futures exchanges in the past week.

The mentality is back to greed

The mood in the crypto market is changing again, but not as at the beginning of the month as investors are cautious.

According to the Fear & Greed Index, the unsustainable optimism of the “October bulls” is gone when it comes to Bitcoin or current Altcoins.

After tapping into “extreme greed” last week, the index fell due to the price movement of BTC and now hit 72/100 – which means “greed”.

Bitcoin has hit this level repeatedly over the past 3 months at various times, which reinforces the psychological “reset” for Bitcoin as the price remains at $ 60,000.

Given that cycle highs typically correspond to a fear and yaw point of 95/100 and above, the price is expected to continue to rise and hold even longer.

Crypto Fear & Greed Index as of October 25 | Source: TradingView

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Minh Anh

According to Cointelegraph

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