Bitcoin’s resilience is the talk of the crypto town. Standing tall at a touch above $30,000 as Wall Street woke up on October 23rd, its fortitude suggests the cryptocurrency’s fate might defy a bearish destiny. But while the numbers are optimistic, the looming shadows of market patterns keep the bulls on their toes.
Testing the Waters at $31,000
After seizing the momentum post-October 22nd’s weekly close, Bitcoin almost tasted the glory of $31,000 – a figure it hadn’t flirted with since July.
The crypto enthusiasts watched, holding their collective breath, as the digital currency showcased its robust growth. The ace trader and crypto seer, Rekt Capital, too, stands at the edge of his seat, awaiting the breaking of the $31,000 ceiling.
But it’s not all rosy. There’s a storm lurking. Throughout 2023, Bitcoin’s price movements have echoed a particular bearish chart pattern – one that hints at a potential downward slide.
Known among traders as the doubletop formation, this pattern has been triggered by Bitcoin hitting near $32,000 twice this year, hinting at possible losses ahead. And now, for Bitcoin to shove this gloomy forecast aside, it needs to rally past the critical $31,000 barrier.
The Bear Market’s Redemption?
Yet, even amidst these uncertainties, there are silver linings. Glassnode, an on-chain analytics firm, throws light on the True Market Deviation indicator.
As revealed by Checkmate, Glassnode’s prime analyst, this indicator, sometimes referred to as the Average Active Investor profit ratio, has turned a corner.
How so? Bitcoin’s True Mean Market price (the point where Bitcoin hovers 50% above or below) currently stands slightly shy of its actual price, resting at $29,780.
In the ever-turbulent world of cryptocurrency, such metrics often lead experts to question – has Bitcoin finally settled its bear market debts?
Eyes on the Prize: The U.S. Bitcoin ETF
Diving deeper into this rally’s potential catalysts, James Van Straten of CryptoSlate brings the spotlight to the U.S.’s expected nod to its inaugural Bitcoin spot-price-based exchange-traded fund (ETF).
Even though the regulatory seal of approval hasn’t been stamped yet, the crypto streets are rife with whispers. After several legal tussles, it seems the regulatory goliaths might be losing grip, making the ETF’s green light seem more a matter of ‘when’ than ‘if’.
Such anticipation has already injected bullish energy into the market. Data from Glassnode underscores this, highlighting a spike in crypto inflows via over-the-counter trading platforms since September’s tail end.
Furthermore, the Purpose Bitcoin ETF, boasting around 25,000 Bitcoin in its coffers, has seen a consistent influx of investments over the past weeks.
Although these investments may not be groundbreaking in volume, they undeniably paint a picture of rising market optimism.
In the backdrop, Grayscale Bitcoin Trust, Bitcoin’s premier institutional investment vehicle, showcases its own set of dynamics. The Trust’s discount to Bitcoin’s actual price has shrunk, displaying its smallest negative gap since December of the previous year.
So, as Bitcoin edges closer to the coveted $31,000 mark, the crypto world watches with bated breath. Will it defy the bearish forecasts and solidify its position, or will the looming shadows of past patterns pull it down? Only time will tell, but one thing’s certain: the clock’s ticking, and the stakes have never been higher.
Source: https://www.cryptopolitan.com/bitcoins-31k-battle-against-bearish-fate/