Bitcoin may be up 40% in November of the past few years, but what about this year?

For a long time, Bitcoin price tried to hover above the key resistance at USD 62,500. However, BTC failed to muster any strength as its larger pricing structure turned sideways since October 21st.

At the time of writing, the price has rebounded after some rallying above this level and is currently trading at $ 62,853.

Now investors and traders are excited after BTC hit its all-time high at the end of the month.

However, the FOMC meeting scheduled for November 3rd has left the market skeptical. The last time the FOMC meeting was held, Bitcoin faced some volatility. Because of this, it is expected that BTC will see more sideways movement. However, there are signs that will determine the dynamics of BTC in the near future.

Successful November Waiting for bitcoin?

Overall, Bitcoin has generally performed well in November of the past few years, with an average gain of over 40%. However, in early November this year, investors weren’t sure what might happen next, so they didn’t want to risk accumulation before tomorrow’s FOMC meeting.

Despite concerns, it should be remembered that the bigger story is still bullish for Bitcoin.

In particular, the stablecoin supply ratio (SSR) is on a decreasing cumulative path. In general, a low SSR is usually associated with a potential uptrend. The SSR is now above the conditional uptrend line. In addition, with the successful defense of the uptrend, the stablecoin is used “crazy” to buy BTC.

The source: KryptoQuant

To validate the increasing daily spending volume of coins “older” than 1 month, we can look at the Average Spending Lifetime (ASOL).

ASOL is now rising above its 40-day moving average. This is generally consistent with price movements in both directions. Currently, the escalation of low profit-taking old coin activity (ASOL) paints a bigger bullish on-chain picture for Bitcoin.

Entity cleaned up ASOL | The source: Glass knot

There are many more options to develop

While on-chain activity is bullish, there is still plenty of room for further growth. Looking at the number of active addresses of Bitcoin, the indicator shows that the network seems to be slower than the price.

Number of active Bitcoin addresses | The source: Glass knot

In the attached graph, Bitcoin (at its current high price) does not appear to be as depleted as it was in April, which also underscores the immense strength on the on-chain side and a likely readiness for BTC to surge in the coming weeks.

All of this is good, but a short-term correction cannot be ruled out. Observing BTC’s weekly and daily RSI shows signs of potentially overbought conditions, which often lead to price reversals.

The source: mood

So while November looks promising, regardless of the recent rally, you’d better be prepared for a short-term correction as it could be a good buying opportunity.

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Minh Anh

According to AMBCrypto

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