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Bitcoin To Gain Pace Above This Level! Will BTC Price Regain Its Old Glory Soon?

28 Oct, 20223 min readBitcoin
Bitcoin To Gain Pace Above This Level! Will BTC Price Regain Its Old Glory Soon?

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 Sustainable Zone?

The bearish market trend has yet to bring any sight of relief and hope to investors as the crypto industry continues to plummet. The price movements of Bitcoin could be more promising but the volatility recently dropped to its lowest at 27.06% since 2020 when it was 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 ‘all exchanges netflow’ is measured on the ratio between inflow and outflow. A positive value of this metric indicates that investors tend to sell off their holdings which may lead to more downfall 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 Head Towards $25K!

For the last few weeks, BTC traded in a consolidated range between $19.6K and $18.7K after facing continuous rejection at $20K level. However, the recent price pump above the $20K level brought bullish hope for investors as it now aims to trade above $25K.

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 reveals that Bitcoin may soon break its Bollinger band’s upper limit, which is placed at $22.5K. If Bitcoin continues its bullish momentum further and breaks above the resistance level of $22.5K, it can head towards the EMA-200 trend line, 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 price jump of Bitcoin ahead of the FOMC meeting scheduled on 2 November may be a trap by whale investors as they are looking to make profits by conducting a pump-and-dump game. Therefore, Coinpedia advises you to do your own research and conduct experts’ opinions before investing in the volatile crypto market.

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