BTC Holds Above $30K as Analysis Suggests Positive Outlook
Bitcoin (BTC) managed to stay above $30,000 as it approached the Wall Street open on October 23. Analysts believe that the strength in BTC price could help cancel out its "bearish fractal."
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was hovering near $30,700, up 2.5% for the day.
After the weekly close on October 22, the largest cryptocurrency experienced rapid gains, reaching levels just below $31,000, its highest since July.
Rekt Capital, a popular trader and analyst, emphasized the importance of breaking the $31,000 level. He stated, "Bitcoin has Weekly Closed above the Lower High resistance to confirm the breakout," referring to the weekly chart.
Rekt Capital believes that BTC/USD could disregard the bearish chart fractal that has been in play throughout 2023. This fractal involved the formation of a double top at the two year-to-date highs near $32,000, which could result in a downside.
However, in order for Bitcoin to invalidate this bearish fractal, it needs to breach the $31,000 level.
Positive Signals from On-Chain Analytics Firm Glassnode
Glassnode's True Market Deviation indicator, also known as the Average Active Investor (AVIV) profit ratio, has crossed a significant level, providing more encouraging signs for Bitcoin.
The True Mean Market price (TMM) for Bitcoin, which represents the level where BTC/USD spends exactly 50% above or below, is now below the spot price at $29,780.
With this development, Checkmate, the lead analyst at Glassnode, questioned whether Bitcoin has now paid its bear market dues. He described TMM as Bitcoin's "most accurate cost basis model."
Institutional Interest Rises in "Uptober"
James Van Straten, a research and data analyst at crypto insights firm CryptoSlate, pointed to the potential approval of the United States' first Bitcoin spot-price based exchange-traded fund (ETF) as a possible driver for the recent rally.
Although the spot ETF has not yet received regulatory approval, it is considered inevitable after legal battles resulted in regulators losing influence.
Van Straten noted that inflows via over-the-counter (OTC) trading desks have surged since late September, according to Glassnode data. He also highlighted the consistent inflows into the Purpose Bitcoin ETF, which holds approximately 25,000 Bitcoin.
The Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle, has also seen a reduction in its discount to the Bitcoin spot price. As of October 23, the discount stood at -13.12%, the smallest negative margin since December 2021, according to CoinGlass data.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment before making any investment or trading decisions.
