If many were betting on October for Bitcoin to regain color, it will ultimately be nothing. If the digital asset shows an advance slightly above 5% over the 31 days of October, we are still far from a real recovery. And if the movement of magnitude was for November? Let’s see it all together!
Some indicators are bullish!
If October was bullish, many expected the tenth month of the year as the messiah. A messiah capable of reversing the direction of the market, driven since last November. In the end, nothing came of it and the bulls’ expectations now turn to November. With some legitimate hopes. As the trader Mustache recently pointed out, certain technical indicators tend to validate the bullish hypothesis. And to accredit his bullish view on the Bitcoin the trader argues using le signal NVTS. He believes that a major movement is coming for Bitcoin and that the market could give a large green candle soon.
The NVTS signal is inspired by the Network Value to Transaction ratio, a ratio that studies the relationship between an asset’s market capitalization and trading volumes. Unlike the NVT ratio, the NVTS signal uses the asset’s 90-day trading volume via its moving average as the denominator. Mustache also believes in the bullish reversal of Bitcoin by the signals sent by the Wyckoff method. It is a technical analysis approach that helps traders in decision-making. This method is based on 4 phases of a cycle which are repeated continuously: accumulation, increase, decrease, and distribution. If we apply this method to previous cycles of Bitcoin, it would seem that we are currently in the accumulation phase.
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Whales continue to hold Bitcoin!
To better understand the evolution of the price of a digital asset, the behavior of whales often offers an interesting reading grid. Over the last few weeks, the supply in circulation has slightly decreased, which suggests that the whales are carefully keeping the asset in their portfolio. A phenomenon that Dan Lim, an analyst for the CryptoQuant platform, explains to us:
Although there is not yet such a strong movement as the start of the bull market, if investors react with DCA or split purchases according to each situation, there is a good chance that good results will appear in the end. .
Other traders like PlanB also suggest that November could be the scene of a major movement. Like others, he considers the upcoming move to be bullish. Like October, November is often a positive month for the price of Bitcoin. Over the past 10 years, the BTC token has been bullish in November in 70% of cases. With a special mention in 2013 when the mother of cryptocurrencies saw its price soar by 453%, the biggest increase ever observed over one month for Bitcoin. If November 2021 was the month of the trend reversal, November 2022 could see the course of history reverse!
As of this writing, Bitcoin is trading for $20,525. The mother of cryptocurrencies still weighs more than $395 billion in market cap and its dominance is 38.6%.
Read also: Bitcoin, on its way to $30,000 in November?