The last 24 hours have pushed several cryptocurrencies, including Bitcoin, to the North. Bitcoin has initiated a fresh upward rally after breaking its immediate resistance level at $19.7K on 25 October. The market capitalization of BTC also made an exponential rise by nearly 1%. The bullish movement of Bitcoin will likely continue but there is some catch!
Is Bitcoin Price in a Consistent Zone?
As the crypto industry continues to decline, the bearish market trend has given investors no sigh of relief and hope. Bitcoin price volatility may be more promising, but volatility recently dropped to its lowest level since 2020 at 27.06%, when it stood at around 23.37%.
According to on-chain data provider, CryptoQuant, the ‘all exchanges netflow’ of Bitcoin is currently trading with a positive value, indicating that investors are depositing a massive amount of BTC to exchanges which hints at a selling pressure amid the crypto winter.
The ‘net inflow of all exchanges’ is measured on the ratio between inflow and outflow. A positive value of this metric indicates that investors sell off their holdings which could lead to a further collapse of the cryptocurrency.
Conversely, a negative value highlights the outflow amount of crypto, which brings a bullish nature to the cryptocurrency as investors show interest in buying the digital asset. However, there is no such inflow spike, meaning that the bullish momentum of Bitcoin depends on whale investors’ mood, which may last for a short span of time.
BTC is heading towards $25K!
Over the past few weeks, BTC traded in a consolidating range between $19.6K and $18.7K, after facing continued rejection at the $20K level. However, the recent price above the $20K level gave investors bullish hope as it is now aiming to trade above the $25K level.
Looking at the daily Bitcoin price chart, BTC made an intraday high of $21,020; however, it faced rejection and made a minor retracement downward. According to CoinMarketCap, Bitcoin is currently trading at $20.6K with a downtrend of 1.16%. Bitcoin gained over 9% in its value in the last seven days, and the bullish rally may be extended further as the RSI-14 is trading at 63-level, indicating a smooth bull run for the digital asset ahead.
Our technical analysis suggests that Bitcoin may soon break the upper boundary of its Bollinger Bands, which is placed at $22.5K. If Bitcoin continues its bullish momentum and breaks the $22.5K resistance, it could move towards the EMA-200 trend line while trading at $25K.
However, the MACD line is making an attempt to trade downwards as BTC recently dropped below its 23.6% Fib retracement. Moreover, SMA-14 is trading in a consolidated zone, indicating that Bitcoin may make a bearish reversal from its current price level.
The current bitcoin price jump ahead of the FOMC meeting on November 2 could be a trap for whale investors as they seek to profit by holding a pump-and-dump game. Therefore, Coinpedia recommends you to do your own research and seek expert opinion before investing in the volatile crypto market.
