Key Points
- Bitcoin has seen a 5.41% decline over the past week, with current trading at $61980.
- Market indicators suggest a potential rally if Bitcoin closes above the 21-week EMA.
Bitcoin’s value has slipped by 5.41% in the previous week.
Market fundamentals hint at a possible surge if Bitcoin ends above the 21-week Exponential Moving Average (EMA).
Bitcoin’s Performance in October
Contrary to the usual increase in October, Bitcoin [BTC] has had a challenging start this month.
At the time of writing, Bitcoin was valued at $61980, marking a 5.41% weekly drop and a daily bearish trend extension of 0.34%.
This decline followed a 9.87% monthly increase, raising questions about Bitcoin’s potential for continued growth.
Crypto analyst Rekt Capital suggests a potential rally, referencing a 21-week bull market EMA.
Market Sentiment and Indicators
RektCapital’s analysis suggests that as long as BTC stays above the 21-week EMA, the market remains bullish, indicating a potential shift in momentum.
This implies that buyers are entering the market and the price action is leaning towards the upside.
Bitcoin’s MVRV long/short difference has also moved from a downtrend to an uptrend, suggesting confidence among long-term holders.
Furthermore, the Fund flow ratio has been decreasing for the past six days, indicating that investors are depositing less BTC into exchanges to sell, but rather, storing in private wallets.
This market behavior suggests accumulation as investors anticipate further gains.
Lastly, Bitcoin’s Funding Rate Aggregated by Exchange has remained largely positive throughout the week, suggesting that investors are taking long positions anticipating future price gains.
Bitcoin’s Future Prospects
In simple terms, Bitcoin has been trading sideways over the past few days, with investors increasing accumulation while others take long positions.
Such a shift suggests the market is well positioned for further gains.
If the market sentiment holds, BTC will attempt $62785 resistance in the short term.