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This Week in Bitcoin: Bullish Breakout Possibilities Rise - TipRanks

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Date: 2021-10-14 05:41:36

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Bitcoin is flirting with $56,000, rising by more than 90% since the lows it touched in July, suggesting that the seminal cryptocurrency may soon shatter its all-time high.

The Fundamental Look

BTC prices have demonstrated a massive recovery of more than 90% since prices dipped to $29,856 on July 20. The flagship digital currency rallied past resistance at $57,000 resistance on October 11, reaching its highest level in five months. 

Per charts shared by Bloomberg, the price of the flagship currency is poised to surpass its previous all-time high (ATH) of $64,800 achieved in May. Moreover, the current “inverted head and shoulders” pattern indicates a possibility of BTC reaching $79,000.

On the other hand, derivatives data shows traders positioned neutral-to-bullish, serving as another potential catalyst for a new all-time high before the end of 2021. (See Analysts’ Top Stocks on TipRanks)

Another report by U.Today suggests that the growing U.S. debt, and tensions over a potential default may help Bitcoin enter a unique price rise phase during the fourth quarter. With “Uptober” in full swing, market sentiment regarding BTC has undergone a dramatic shift.

The Crypto Fear & Greed Index report shows that compared to last month’s score of 44, which indicates Fear, traders’ collective mindset has catapulted to 70, corresponding with Greed. 

Meanwhile, on-chain metrics from Glassnode are indicating more favorable trends among BTC investors, as the number of Bitcoin Active Entities increased substantially following the bull rally that started at the beginning of October.

Glassnode, in its on-chain report, highlighted that long-term HODLers currently sit on nearly 13.3 million BTC, translating to 70% of Bitcoin’s supply.

The report further suggests that these long-term HODLers have increased their collective stash by almost 2.4 million BTC over the past seven months. 

In mining news, owing to China’s ongoing crackdown on Bitcoin mining, the global market is undergoing an unprecedented restructuring of hash rates. Thus far, the U.S. stands out as the largest beneficiary of this effort.

CleanSpark (CLSK), one of the biggest Bitcoin mining companies, has purchased 4,500 Antminer S19 mining rigs to increase its computing power to 450 PH/s, marking a 45% increase over its existing computing power.

Moving on, in terms of crypto adoption, Birmingham Legion’s Alex Crognale became the first-ever USL professional soccer player to get paid in BTC. In South America, Venezuela’s Simón Bolívar International Airport is preparing to accept BTC as payment for tickets and other services.

Finally, crypto exchange Blockchain.com is debuting Bitcoin margin trading, enabling its gold-verified users across 150 countries to trade with up to 5:1 leverage. 

Whales Of The Week

  • October 7: 31,334.291 BTC moved from multiple addresses to an unknown wallet
  • October 7: 11,500.000 BTC moved between unknown wallets
  • October 8: 7,602.052 BTC moved from multiple addresses to an unknown wallet
  • October 8: 11,700.000 BTC moved from multiple addresses to an unknown wallet
  • October 10: 2,524.645 BTC move from multiple addresses to an unknown wallet
  • October 11: 5,380.960 BTC moved from multiple addresses to Bitfinex
  • October 11: 6,229.990 BTC moved from multiple addresses to an unknown wallet
  • October 12: 6,988.992 BTC moved between unknown wallets
  • October 12: 3,609 BTC moved from multiple addresses to Bitfinex

The Technical Take

Over the last seven sessions, Bitcoin prices have been effectively flat, even after reaching multi-month highs. However, Bitcoin has outperformed Ethereum and Cardano, with ETHUSD sliding -3.31% and ADAUSD tumbling -9.10% over the same period.

Despite prices moving modestly higher over the last week, BTCUSD’s upward momentum is waning, suggesting that a near-term pullback could be underway following the pair’s brief jump above $57,000. Considering the move higher from strong support sitting around $40,800, a 30% pullback might lead to a near-term price retreat to $52,000 before resuming the upward trend. 

The Relative Strength Index and Stochastic Oscillator also indicate that BTCUSD is currently overbought, alluding to the growing likelihood of a brief downward correction before the pair reverses higher. Nevertheless, the bullish head and shoulders formation, and the completion of the right shoulder suggests that any pullback will likely be minor and brief before upward momentum resumes.

Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.

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Original Source: https://www.tipranks.com/news/article/this-week-in-bitcoin-bullish-breakout-possibilities-rise/