Bitcoin’s Price Surge: Is It Breaking Free from the Bear?

Bitcoin’s Steady Climb

As Wall Street opened on October 23, Bitcoin (BTC) remained strong, keeping its head above the critical $30,000 mark. Data indicated BTC was hovering around $30,700, marking a remarkable 2.5% increase for the day. This rise came right after the weekly close on October 22, where Bitcoin made impressive gains, peaking just below $31,000—the highest it’s been since July.

The ‘Bearish Fractal’ Explained

Despite the optimism, some analysts, including Rekt Capital, are closely watching Bitcoin’s next move. Bitcoin’s ability to break and hold above the $31,000 threshold is crucial, as it could signify a shift away from the pervasive bearish momentum seen throughout the year. The bearish fractal involved two peaks earlier in the year around $32,000, leading analysts to anticipate a decline.

Key Criteria for Invalidating the Bearish Fractal

• Support Band Holds: The bull market support band remains intact.
• Weekly Closure Above Lower High: A strong close above the previous resistance level.
• Breach of $31,000: The ultimate test to affirm a bullish outlook.

Market Indicators Point to Optimism

Meanwhile, the True Market Deviation indicator from Glassnode is painting a slightly brighter picture. On October 23, leading analyst Checkmate noted that Bitcoin’s True Mean Market price (TMM) sits below the spot price, hinting that Bitcoin may be ready to move significantly upward. Checkmate cleverly posed the question, “Have we now paid our bear market dues?” as investors remain watchful of market trends.

Spot ETF Rumors Driving Interest

Another major factor influencing the resurgence could be the buzz around a potential U.S. spot Bitcoin ETF. Crypto analysts, including James Van Straten from CryptoSlate, suggest that the anticipated approval of such an ETF has ignited increased bullish sentiments. While no green light has been officially given, the prospect seems hopeful, leading to notable inflows in the crypto market.

The Role of OTC Trading

Furthermore, over-the-counter (OTC) trading desks have seen remarkable inflows which, although small, reflect a positive shift in market sentiment. The Purpose Bitcoin ETF, managing around 25,000 Bitcoin, has noticed consistent inflows, enhancing the overall optimism surrounding Bitcoin investments.

Investing with Caution

Even though Bitcoin seems to be on the verge of breaking through resistance levels, it’s crucial to remember that cryptocurrency investments come with risks. Recent trends, while encouraging, underline the importance of conducting thorough research before diving into the market.