“Unlocking Bitcoin’s true potential requires a breakthrough of the $31K mark, thwarting a potential ‘bearish fractal’ that could cast a shadow on its path towards a prosperous 2023.”
Bitcoin (BTC) has managed to hold above $30,000, and there are indications that its price strength could cancel out its “bearish fractal.” On October 23, BTC hovered near $30,700, up 2.5% from the previous day. After the weekly close on October 22, Bitcoin experienced significant gains, reaching its highest levels since July, stopping just shy of $31,000. Analysts are now keeping an eye on whether Bitcoin can break the $31,000 level.
Rekt Capital, a popular trader and analyst, believes that Bitcoin could disregard the bearish chart fractal that has been in play throughout 2023. This fractal involved the formation of a double top near $32,000, suggesting potential downside. However, for this to happen, Bitcoin needs to breach the $31,000 level.
Glassnode, an on-chain analytics firm, provided more encouraging cues for Bitcoin. Their True Market Deviation indicator, also known as the Average Active Investor (AVIV) profit ratio, has crossed a key level. Bitcoin’s True Mean Market price (TMM) is now below its spot price, indicating positive market sentiment.
Institutions also seem to be awakening to Bitcoin’s potential. The potential approval of a spot-price-based exchange-traded fund (ETF) in the United States has resulted in a significant increase in bullish inflows in the crypto market. Over-the-counter (OTC) trading desks have seen a spike in inflows since late September. The Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle, has also seen a lower discount to the Bitcoin spot price.
It is important to note that this article does not contain investment advice or recommendations. Investing in Bitcoin or any other cryptocurrency involves risk, and individuals should conduct their own research before making any investment decisions.
