Bitcoin shows resilience despite poor macro conditions as outflows from exchanges accelerate

After the cryptocurrency sector reclaimed its $1 trillion market capitalization, optimism has returned among crypto investors and experts, at least in terms of the industry’s flagship asset, Bitcoin (BTC), which has been demonstrating resilience in recent days.

As it happens, Bitcoin has recorded significant resilience in price and a massive outpour from crypto exchanges despite the unfavorable developments on traditional markets, according to an analysis by Cristian Palusci, an expert with crypto analytics platform CryptoQuant, published on October 31.

Poor macro situation

According to Palusci, these negative macro patterns include the liquidity crisis in the bond markets, as well as the difficulties that have engulfed the real estate sector, in anticipation of the upcoming Federal Reserve’s funds rate hike and the U.S. labor market report. 

In addition, he explained that:

“I believe that the next few days will be useful to understand the direction of the equity markets and, given the close correlation, also of the crypto market. We also add the tensions on the geopolitical front, with Russia suspending the wheat deal after the attacks on Sevastopol.”

Finally, Palusci concluded that “it will not be boring and we will see if in such a scenario Bitcoin will have the strength to break the resistance at $21K.”

Bitcoin technical analysis

At the same time, BTC’s technical analysis (TA) is looking positive, as the summary demonstrates a ‘buy’ sentiment at 11. Upon further breakdown, the oscillators suggest buying Bitcoin at 2, while the moving average (MA) indicators point to a ‘buy’ a bit stronger – at 9.

Bitcoin price analysis

Elsewhere, crypto trading expert Rekt Capital noted on November 1 that the “new BTC monthly close is in which solidifies BTC’s return into the ~$20,000-$23,300 macro range,” adding that “BTC may need to dip in the short-term into ~$20,000 for a retest attempt” to fully confirm its return to the above range.

At press time, Bitcoin was changing hands at $20,503, which represents a 0.90% drop across the previous 24 hours, but also a 5.69% increase over the week, according to data retrieved by Finbold on November 1.

It is also worth noting that some crypto analysts expect a very bullish year for Bitcoin, taking into account the decentralized finance (DeFi) asset’s behavior in previous years, specifically the similarities with its technicals from 2019.

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