Too green to be true? Bitcoin (BTC) Price Recovers Near $19,000 As Data on chain and from cryptocurrency exchanges, announce big moves to come.
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The price of Bitcoin at $19,000: will it change?
The price of bitcoin drops to $19,138 on Bitfinex today, October 18, 2022. The cryptocurrency is trading at $19,175 at the time of writing. Its price is currently recording a daily loss of 1.83%.
Will this drop to levels near $19,000 be followed by a strong bullish impulse or bigger declines? Or should the markets expect small daily variations, with an extension of the routine that has been in place for days?
Data from whalemap show ‘strong on-chain activity’ of whales and HODlers yesterday, October 17, 2022. Much of these ‘bitcoins that moved had been inactive since the summer of 2021’, recording a total loss of over $350 million from.
Whalemap analysts believe these movements suggest “ a fairly rapid increase in volatility “.
Bear or bull: a (false?) air of November 2020
Other data supports and clarifies this probability of an imminent increase in volatility. The platform Material Indicators shared a chart from the order books of Binanceto show a significant resistance wall that has formed at $20,000.
This setup resembles that of November 2020. At that time, Material Indicators points out that “over $100 million of requested liquidity was consumed for start the bull run “. Bitcoin had then crossed $20,000, to begin a bull run that allowed it to reach a historic high near $69,000 after about a year.
Can the markets really expect a repeat bis of such a bullish scenario? The macroeconomic conditions are different this time, notably with inflation that is giving central banks a hard time.
The beginning of a green period confirmed for the price of Bitcoin?
Glassnode also provides other on-chain data, which also supports this idea of an upcoming break from the current routine.
The company has shared a graph that shows Bitcoin supply having moved over the past six months, is now approaching its all-time lowwhich amounts to 18.12% of the circulating supply.
Based on historical data, this very low volume occurs “typically after prolonged bear markets.” The graph shared by Glassnode also shows that when the supply of Bitcoin was so low in 2016, the price of Bitcoin was at the start of a long ascentwhich will take its price to around $20,000 at the end of 2017.
Does this return to $19,000 correspond to the expected test, which could lead to a rise breaking the resistance zone of $19,500-$19,600, followed by a reconquest of $20,000 and above?
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