Bitcoin Technical Analysis: The Calm Before the Storm

The Bitcoin market is once again on a positive track, with prices continuing to rise. In the ongoing bull run, it is clear that Whales are focusing only on Bitcoin and, to a lesser extent, Ethereum as well. 

Basing it off on the current price action of the entire cryptocurrency market, it is reasonable to conclude that market capitalization has been on a massive rise only in Bitcoin (BTC) and ETH cryptos.

On the other hand, Altcoins are certainly attempting to join in the present price surge but have remained underperformers in comparison to Bitcoin. From a technical standpoint, Bitcoin is trading near its May peaks, while the bulk of altcoins are unable to break out of the range. However, given the momentum that altcoins may generate when large purchasers come into the market, it would not be shocking to see altcoins eclipse Bitcoin, despite the fact that BTC now leads by substantial gains.

BTC Price and Levels Uncovered

With the completion of half of October, the Bitcoin market has shown itself with fresh numbers, which was observed at the beginning of 2021.

The bulls took control to reach fresh highs on the lower time horizons after lingering between $40,600 and $44,500 for a long time. Since the beginning of this month, there hasn’t been a single major downfall with a decline of more than the per day average percentage movement of Bitcoin. The cryptocurrency touched values near USD 55,700 at the conclusion of the first week, following which prices fell into a mini range.

However, following a brief fall from $55,700, prices proceeded to rise to the psychological resistance of $60,000 level with hardly any big retracements to the negative along the way up.

The BTC cryptocurrency price increased by 40 percent in less than two weeks, which is huge in consideration of its market cap as well as the weekly average.

Speaking of the present, the most valuable cryptocurrency trades $61,800, with its recent high of $62,891. The recent high was made on 15 Oct, after which the market has not been able to reach this level yet.

Current Market Price of BTC Puts 99% of Supply in Profit

The bitcoin market has eventually hit the $60,000 mark, the same level that was witnessed a couple of quarters ago. With the mainstream getting in on the buys around the highs in May, all such investors went negative with their investments.

However, now that the Bitcoin market has risen back to the same $60K prize zone, most BTC holders have registered green on their portfolios. According to Glassnode, a leading crypto analytical platform, over 99% of the BTC’s supply is positive.

“With Bitcoin over $60k once again, only 0.98% of the circulating supply was last spent at higher prices… 99.02% of all BTC supply is now in profit,” – Glassnode indicated.

Bitcoin Price Chart Analysis

Bitcoin token has unquestionably enjoyed a remarkable run so far. Despite the occasional unfavorable media coverage, the BTC crypto has always been able to weather the storm elegantly. And this comes with the overall sentiment the long-term investors have towards the market. The market bouncing back up irrespective of the percentage downfall clearly signifies that the downturns were perceived as a massive discount in prices.

To begin with the technical elements, the market is seeing a significant upward movement, with prices finally reaching the $60,000 psychological barrier. After being trapped in an allegedly bearish phase for almost two quarters of 2021, the bull appears to have reclaimed control of the market by driving it up even higher with strong momentum.

The last bull run that began exactly a year ago helped analysts forecast to a degree the levels at which the market could find support to restart its upward trajectory.

On the higher timeframes, a couple of price levels were crucial for the market participants – the demand level at $30k and the supply level at  $58.5k. The $30k demand level was the point where buyers were anticipated to take charge and transit north. Interestingly, the market did hold on at the support levels after the prices crashed insanely during mid-May – showing the existence of the buyers on the bigger picture. Consequently, the Bitcoin market got back into an uptrend making higher highs and higher lows.

Shedding light on the current price action, there are no signs of sellers in BTC crypto despite the market being in a region of resistance (supply). If looked carefully, the price smoothly breached through the $58,000 supply zone though it was considered to be a major hurdle for the market.

The market has now gone into a minor consolidation as there is perhaps some profit-taking kicking at $61,000. Depending on the current momentum of the buyers, it is highly probable for the prices to not find a major reaction from the sellers at these price levels because the bulls have outsmarted the bears in every possible technical aspect at this point in time.

Now you can get the world’s largest cryptocurrency and most of your other favorite cryptos from our list of popular and reliable cryptocurrency exchanges.