Bitcoin bears have continued to apply downward pressure. However, the bulls appear to be evenly matched, keeping the price within the $19,000 range.
Despite bitcoin having dropped 0.59% over the last day, the trading volume is up by an impressive 14%.
Through October, Bitcoin appears to have broken through and bounced off the $19,000 support and now appears to be moving in for another retest.
The bulls are expected to hold and defend this line while bitcoin bounces off and possibly trends upwards again to the $21,000 support before the market knows what comes next.
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However, Bitcoin may be in for a “huge volatility bout,” according to several indicators from several analysts (including Alex Kruger). This article examines bullish takes from three different sources as to why bitcoin might start to trend upward very soon.
Bitcoin Whale Holdings (Santiment)
Last week, popular bitcoin analysis and tracking platform, Santiment published an idea via their Twitter handle about why bitcoin is showing this much reluctance to go below the $18,000 support.
According to Santiment, the bulls are showing strength, and the whales are starting to accumulate bitcoin again in the third quarter of 2022. Santiment has also pointed out that something like this has been a “rarity” in 2022.
According to the analysis platform, wallets holding 100 to 10k $BTC have collectively added 46,173 BTC back to their wallets since September 27th of this year, dropping the market dominance of the stablecoin, $USDT.
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According to the chart above, the whales’ UDST holdings (purple line) had risen from late August this year, while that of Bitcoin (yellow line) started to fall.
However, since late September, the whale holdings on USDT have been declining, while that of bitcoin is rising.
This is also verifiable in the USDT-dominance chart. Around the same period (late August), the dominance of USDT relative to the cryptocurrency market started to trend upwards.
The behavior of the USDT dominance chart can be used to track the market’s behavior.
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If the dominance of USDT appears to be trending up, investors are starting to move their money out of crypto and convert it into USDT. This could signal an incoming bear market.
Conversely, if the dominance of USDT appears to be trending down, investors are starting to put their money into crypto again, which could signal market bullishness.
$BVOL By Alex Kruger
Alex Kruger (@krugermacro) is a famous economist and trader with a Twitter audience of more than 146k followers.
Lately, Kruger pointed out something interesting about the $BVOL (BitMex Historical Volatility Index). For perspective, the $BVOL is the annualized volatility of the BTC/USD pair over 30 days.
In a Twitter post, Kruger points out that an explosive BTC move follows whenever $BVOL closes below 25.
According to Kruger, this has happened twice, with bitcoin moving upwards and once with the cryptocurrency’s price moving to the downside (November 2018).
Kruger adds that the Core CPI report this Tuesday might be what pushes $BVOL below the 25 mark and allows us to see what comes next.
Bitcoin Rainbow Chart
The Bitcoin Rainbow chart is like most other kinds of graphs. It attempts to use certain data to forecast where bitcoin’s charts might be headed shortly. In the rainbow chart’s case, this data is Logarithmic growth rates.
The bitcoin rainbow chart isn’t as technical as it sounds and can be very easily read. It is made up of several bands of color (much like an actual rainbow), with zones showing how safe it (might) be to buy or sell one’s bitcoin.
Recently, the Bitcoin Rainbow Chart appears to be showing bullish signs for the cryptocurrency.
As illustrated above, the price of BTC has trended into the “basically a fire sale” zone and may be the last bullish sign bitcoin displays before a strong move to the upside.
However, it is essential to note that rainbow charts are merely fun looking at long-term price movement and should not be taken as investment advice.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)