As things are starting to look up for the general cryptocurrency sector, which is trying to stay above the $1 trillion in capitalization after weeks of its assets trading sideways, the future price movements of Bitcoin (BTC) are a particularly hot topic in the crypto circles.
Taking into account its current behavior, Bitcoin is approaching a crucial level, with the ‘significant’ resistance area between $20,750 and $20,900, crypto trading expert and analyst Michaël van de Poppe noted on October 27.
In his tweet and accompanying chart, Van de Poppe explained that, in order for BTC to continue its bullish run, it needs to stay at the area of $20,500:
“Now, to continue the trend, the area at $20.5K needs to hold, but I think we’re ready for a test at $20K before the market continues.”
Bitcoin price analysis
Van de Poppe’s expectations might as well come true, as Bitcoin was at press time trading quite above that range – at $20,713 – which is an increase of 1.30% on the day, as well as 8.03% across the previous week, as per data retrieved by Finbold on October 27.
As things stand, the market cap of the still largest decentralized finance (DeFi) asset by this indicator currently stands at $397.38 billion, according to CoinMarketCap data.
Less volatile than other assets
Meanwhile, Bitcoin’s volatility over 20 days dropped below that of the U.S. stock market, particularly the Nasdaq and S&P 500 indices, for the first time in four years as FX volatility rose to post-pandemic highs.
At the same time, declining British pound sterling (GBP), which has recorded the highest volatility growth in September, has pushed investors towards Bitcoin, leading to a dramatic 233% increase in BTC-GBP trading volumes.
On top of that, long-term holders are persistent in their Bitcoin ‘hodling’ strategy, as they held over 75% of all existing BTC on October 25, which is the highest percentage seen since October 2015, as Finbold reported.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/trading-expert-identifies-key-bitcoin-area-to-hold-for-bullish-continuation/