BTC View Critical October Monthly Close Against Short-Term Pullback Context (Bitcoin Price Analysis)

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October has so far been a solid month for BTC, currently up 40% for the month, following the September earthquake.

The overall fundamentals and chain trend remain firmly bullish as long term holders and miners continue to show no signs of aggressive distribution. Conditions continue to look a lot like BTC’s situation in November 2020, just before a new all-time high was hit.

However, we need to be cautious in the short term, as cash inflows slowly tend to increase and the estimated leverage ratio is still high at 0.19.

The techniques

TL; DR – if BTC struggles to maintain the 21-day MA, 21-day EMA, and $ 60,000 in the short term, it could trigger a further drop in the support area between $ 58.3,000 and $ 53,000 .

BTC / USD, October 31 Bitcoin price remains in a short-term decline phase after a strong four-week rally, with an increase in open interest rates, funding rates and the estimated leverage ratio BTC managed to close above the 21-day MA, 21-day EMA and $ 60,000, which is a positive signal in the short term, but the leverage ratio is still high, suggesting that there is still a risk of dismantling. In this case, the price zone between $ 58.3,000 and $ 53,000 is likely to be a solid level of tech and on-chain support to watch out for. BTC recently broke a short-term bearish trendline, but remains below $ 63.7,000, a level to help form a higher high. then a breakthrough to new all-time highs, sending BTC from $ 20,000 to $ 40,000 very quickly. Recently, BTC hit new all-time highs, but with a high leverage ratio, which has led to the current upheaval. Given the firmly bullish trend in fundamentals and the chain, it’s likely that BTC will find a local low between $ 60,000 and $ 53,000, then retest previous all-time highs of $ 64.8,000, leading to a higher massive breakout. If the price of bitcoin closes below $ 53,000, it will be a bearish signal, triggering further downside risk of $ 50,000 to $ 45.2,000. This is a scenario the bulls must avoid to protect the current breakout attempt above $ 64.8,000. Critical monthly close is approaching (Sunday midnight UTC): we need to see a monthly candle close above $ 58.8,000 to hit a new monthly close high, further strengthening long-term techniques.

Monthly BTC / USD chart.

Onchain

Onchain metrics continue to show a very bullish overall trend for Bitcoin:

Spot exchange and all foreign exchange reserves continue to hold multi-year lows. Even though spot foreign exchange reserves have increased as coins get younger, likely traders have made profits. When looking at UTXO age ranges, older coins on the whole continue to pile up, while younger coins have aggressively taken profits. The miners continue to hold out, showing no signs of distribution: Miners’ reserves are currently around 1.857 million BTC.

BTC Chain Analysis, October 31

Mean Coin Age continues to hit new all-time highs, despite the short-term pullback, indicating that older coins have not sold this pullback. BTC has already hit a new high, and LTHs and miners haven’t started a distribution trend. This indicates that there is significant potential for BTC Google search trends for BTC remain below cycle peaks, with active addresses away from peaks. All of this suggests that there is significant potential for BTC.

BTC Chain Analysis, October 31

In conclusion, large rallies with increasing leverage need healthy shakes to remove leverage and help build structure, making the bull market rally more sustainable. We can expect a further bullish continuation leading to new all-time highs once the pullback phase is over. Bulls need to protect $ 58.3,000 to $ 53,000 in the event of further jerking. Onchain and technical data suggest this support zone should hold, with bullish continuation to new all-time highs in November. SPECIAL OFFER (Sponsored) Binance Futures 50 USDT Voucher FREE: Use this link to sign up and get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

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