Bitcoin Soars Alongside Spot ETFs. The ATH Is in Range!
UPtober Bets Paid Off: Bitcoin Adds More Than $10K to Its Value.
After breaking through the double top at $69,000, Bitcoin flew to a high of $73,600, coming within inches of the All-Time High at $73,794. It is currently trading at $69,350 and it is printing a pullback, which is relatively normal after a strong climb that took the Relative Strength Index into overbought territory.
According to X (formerly Twitter) sources, the latest drop wiped about $500 million from the market, as large amounts of long trades hit their Stop Loss. And while this is surely not a reason for celebration for the long position holders, the overall market is bullish despite the recent pullback.
BlackRock’s IBIT Bitcoin ETF brought in a record-breaking $872 million of inflows on October 30. This was the next day after BTC reached $73,600. This is the largest inflow since BlackRock launched their Bitcoin spot Bitcoin Exchange Traded Fund, back in January of this year.
The Core PCE Price Index release Thursday did not throw any curveballs nor did it create huge volatility, as the actual reading matched the forecast and differed from the previous by a very small margin.
There is still a major release today: the U.S. Non-Farm Payrolls report, which has the potential to create volatility in USD and crypto pairs. Also, the rapidly approaching U.S. election is likely to create additional turmoil in the market. It may be even possible that some investors will pour some funds into Bitcoin ETFs, seeing it as a vehicle to hedge against uncertainty stemming from the Presidential race coming to an end.
Chart Analysis – BTC/USD
Bitcoin is up 2.46% over the last 7 business days and as October came to an end, we can safely say it was actually UPtober and that history repeated itself just as it did many times before. The month started at roughly $60,000 and finished just above $70,000.
BTC/USD created a double top at $71,500 in late May and early June. However, the recent price action showed that the pair is not giving much importance to this pattern. On October 29 it moved above this resistance and just 2 days later it dropped right below it.
It remains to be seen what the extent of the current pullback will be but the RSI is moving down after breaching its overbought level, so we may see a deeper retracement. It must be noted that there is no bearish divergence (the price made a higher high and the RSI also made a higher high). This generally means that we are dealing with a regular pullback, not necessarily the end of an uptrend.
