The most likely scenario facing the Bitcoin market

22 Okt 2023

HERE is the most likely scenario facing the #Bitcoinmarket on the chart and #Bitcoin market #analysis review along with reasons why the price moving in a long-term #uptrend currently, so here we are waiting for down trend in a short-term inside the long-term uptrend!


#TechnicalAnalysis

• Bitcoin has been trading in the range between 20k to 25K for the last few months after crashing from all-time highs. This indicates it is consolidating and establishing support in this zone.
  
• The 200-week moving average around 22k is a key long-term support level. Bounces off this level indicate bullish sentiment.
  
• RSI recovered from oversold levels and is rising back toward 50, suggesting selling pressure is weakening and positive momentum is building.
  
• The #MACD crossover recently turned positive, signaling the start of an uptrend. Several other technical indicators like the #Ichimoku cloud also indicate a bullish trend.
  

#SentimentAnalysis

• Crypto fear and greed index has risen from "extreme fear" to "fear", suggesting sentiment is gradually improving. This often precedes bull runs.
  
• Funding rates on futures contracts have flipped positive, indicating traders expect prices to go up. Rising open interest also points to increased bullish sentiment.
  
• Social media and news discussions relating to crypto have increased, suggesting renewed retail interest compared to extreme bearish sentiment in June 2022.
  

#On-ChainAnalysis

• Number of addresses holding BTC continues rising, showing accumulation by long-term holders. Around 65% of supply has not moved in over a year, indicating strong hold sentiment.
  
• Miners have reduced outflows as reserves decline, suggesting they are holding onto newly minted coins anticipating a bull market instead of selling.
  
• Exchange inflows remain relatively low compared to historical levels, indicating lack of panic selling. Exchange balances are declining.
  

#FundamentalAnalysis

• Adoption by institutional investors and corporations continues rising, lending legitimacy. #BTC holdings of listed companies reached an all-time high in Q3 2022.
  
• Network health remains strong, with hashrate and mining difficulty rebounding to new highs. This suggests faith in long-term viability.
  
• Potential #SEC spot Bitcoin ETF approval may provide a significant boost to market #sentiment and institutional inflows into crypto.