Bitcoin [BTC] Just finished a very exciting week that has been observed for a while now. This was because the cryptocurrency’s downtrend in October continued to build on the downtrend since mid-August. As a result, the recent rally eased the bearish market tension, hence last week’s rally.
But can the bulls sustain this bullish trend for a longer period? Let’s find out.
Here is AMBCrypto Bitcoin (BTC) Price Predictions for 2022-2023
Yes, Bitcoin saw a bullish recovery of more than 10% last week, but its volatility has been particularly low in the past three days. But can the bullish momentum resume or will we see the selling pressure return? Well, here are some notes that can help give an overview of where the market might be headed given the current supply.
According to a CryptoQuant analysis conducted by Tariq Kain (not his real name), the recent rally has been driven by retail buying pressure. In other words, analysts noted that the participation of whales and institutional investors was significantly low.
Confirms Drop in Bitcoin Elections and Establishment Participation
This analysis may be valid as the recent uptrend was not marked by long daily candles to indicate a strong large buy. This does not necessarily mean that electoral activity was absent. In fact, some bullish pressure was seen from addresses between 10,000 and 100,000 BTC over the course of the month. Last week’s performance saw increased buying pressure from titles in the 100 to 100,000 range.
Addresses containing between 100 and 1,000 coins also saw net outflows during the week. This refers to profit taking by whales with higher prices. The 100,000 to 1 million headlines recorded big outflows on October 25. This elective class is likely to represent exchange addresses.
The above analysis also showed that the backlog of headlines has stalled. In addition, an increase in foreign exchange reserves has been observed in the past seven days. This indicates that many traders hold bitcoins on exchanges. Moreover, this also indicates that traders may not be confident enough about the bulls.
The long-term Bitcoin holder SOPR was 0.69 at press time. This means that scammers in the long run were still on the losing side.
All of the above information strongly indicates expectations of another bearish rebound. This means that Bitcoin may be doomed to extend its stay in the lower band. A look at the price action revealed that it was already facing resistance in the $20,800 area. The same range has previously acted as support and resistance in recent months.
Are you okay BTC?
It will be difficult for Bitcoin to sustain an uptrend in the short term without the need for elections and institutional demand. After that, an increase in selling pressure is likely to push towards another bearish outcome. On the other hand, investors should watch for the return of bullish demand from whales and institutions. This would ensure the continuation of the bullish momentum.