As Bitcoin passes $20,000, the market is expecting a strong October. The crypto is now trading between $19,712 and $20,479 at the time of writing.
Since the crash of September 13 rattled the global financial system, this is the highest trading price BTC has reached.
As BTC bulls have been trying to break through this resistance level for almost a month, the breaking of the $20k psychological barrier is a major event.
To those looking to acquire Bitcoin or add to their existing holdings, however, the breakthrough may serve as a powerful buy signal.
Perhaps this market uptick is what the cryptocurrency industry needs to end the crypto winter.
Taking The Bull By The Horns
CryptoQuant claims numerous indicators can provide reliable buy indications for traders. Depletion of foreign-exchange reserves is one such factor.
Decreased Bitcoin exchange reserves are an optimistic indicator since it suggests an increase in Bitcoin purchases.
A shift in the outflow of foreign exchange is always a consideration in this context. On October 4, the value of the exchange outflow was $47,655.83.
A high number for this indicator indicates reduced Bitcoin selling pressure. The fear and green index is also rising, offering investors and traders strong buy signals.
A rising RSI value may indicate an increase in investor confidence due to recent developments in the cryptocurrency market or the psychological resistance level of $20,000.
Extended Accumulation In The Offing
Bitcoin’s price increase is not unexpected. Recent reports indicate that Bitcoin is witnessing a prolonged accumulation.
Since September 27, the number of Bitcoin addresses holding between 100 and 10,000 Bitcoins has surged dramatically.
As of this writing, the 7-day moving average is providing dynamic support for Bitcoin’s ascent. Current support is located at $18,548, with resistance at $20,473.
With the current flow on the bullish side, we may anticipate a price increase in the coming days. Meanwhile, Bitcoin is still fighting to surpass the $20,472 resistance level.
A breach of this price level will eventually drive the price over the 78.60 Fibonacci retracement level, which is located at $21,229.
BTCUSD pair loses $20K handle, now trades at $19,954 on the daily chart | Source: TradingView.com
Featured image from Fintwit, Chart: TradingView.com