Bitcoin has delivered gains that “set the foundation for a resumption of the 2023 uptrend,” says the latest BTC price analysis from Glassnode.
Is Uptober here? Bitcoin, Ethereum suddenly pumps, wiping $70M in shorts
The price of Bitcoin and Ethereum surged nearly 4% in just a 15-minute window, sparking bullish predictions for the remainder of October.
Crypto Market Shows No Signs Of Positive Movement, Is ‘Uptober’ A Myth?
The crypto market woes from September look to have spilled onto October and going against the historical trend of October being a rather bullish month. September had seen the crypto market close with muted performances, but there has not been much change for the new month. Almost two weeks into the month, and it is starting to look like the much-awaited “Uptober” will disappoint investors.
Poor performances All-Around
All of the indexes in the crypto market are seeing poor performances from market participants. The first two weeks of the month have come back with negative movement and the declines have continued. The size of a cryptocurrency has not mattered either since they have all suffered closely similar fates.
The Small Cap Index came out as the worst performing for the first two weeks of October with -4.7%. This is understandable given small cap altcoins have been known to take movements a couple of steps further; recoveries run higher and declines run lower.
Large Cap coins followed as the second-worst performer in the same time period with returns of -2.4%. A bit more surprising given that they closely follow bitcoin price but it did not fall too much behind the Mid Cap Index which saw a decline of -2.1%.
Market performance remains bad | Source: Arcane Research
Bitcoin emerged as the best performer for this time period with only -1.5% in losses. It also follows the trend that investors are turning more towards bitcoin during this time and taking advantage of the decline in price.
Crypto Market Deviates From Norm
All of the performances highlighted above only go to show that the crypto market is not performing as expected. Even though investors are moving back into bitcoin, the market share of stablecoins is still on the rise, so there is still a flight to safety among investors.
Total market cap below $900 billion | Source: Crypto Total Market Cap on TradingView.com
For the last week, the crypto market dominance of bitcoin fell by another 0.20%, and ETH fell 0.24%, with recorded losses from others in the top 10 such as BNB, ADA, and SOL. Most of this lost dominance went to stablecoins such as USDT, USDC, and BUSD, all of which saw an increase in their dominance.
Crypto market sentiment still remains low in the extreme fear territory, which suggests that there is no expected recovery in the market during this time. Unless there is a reversal in this move to stablecoins, the market will continue to see negative rates.
Featured image from NASDAQ, charts from Arcane Research and TradingView.com
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Bitcoin Price Soars This ‘Uptober’ As BTC Barrels Past $20,000
As Bitcoin passes $20,000, the market is expecting a strong October. The crypto is now trading between $19,712 and $20,479 at the time of writing.
Since the crash of September 13 rattled the global financial system, this is the highest trading price BTC has reached.
As BTC bulls have been trying to break through this resistance level for almost a month, the breaking of the $20k psychological barrier is a major event.
To those looking to acquire Bitcoin or add to their existing holdings, however, the breakthrough may serve as a powerful buy signal.
Perhaps this market uptick is what the cryptocurrency industry needs to end the crypto winter.
Taking The Bull By The Horns
CryptoQuant claims numerous indicators can provide reliable buy indications for traders. Depletion of foreign-exchange reserves is one such factor.
Decreased Bitcoin exchange reserves are an optimistic indicator since it suggests an increase in Bitcoin purchases.
A shift in the outflow of foreign exchange is always a consideration in this context. On October 4, the value of the exchange outflow was $47,655.83.
A high number for this indicator indicates reduced Bitcoin selling pressure. The fear and green index is also rising, offering investors and traders strong buy signals.
A rising RSI value may indicate an increase in investor confidence due to recent developments in the cryptocurrency market or the psychological resistance level of $20,000.
Chart: TradingView.com
Extended Accumulation In The Offing
Bitcoin’s price increase is not unexpected. Recent reports indicate that Bitcoin is witnessing a prolonged accumulation.
Since September 27, the number of Bitcoin addresses holding between 100 and 10,000 Bitcoins has surged dramatically.
As of this writing, the 7-day moving average is providing dynamic support for Bitcoin’s ascent. Current support is located at $18,548, with resistance at $20,473.
With the current flow on the bullish side, we may anticipate a price increase in the coming days. Meanwhile, Bitcoin is still fighting to surpass the $20,472 resistance level.
A breach of this price level will eventually drive the price over the 78.60 Fibonacci retracement level, which is located at $21,229.
BTCUSD pair loses $20K handle, now trades at $19,954 on the daily chart | Source: TradingView.com
Featured image from Fintwit, Chart: TradingView.com
