Bitcoin could rally higher in the weeks ahead, printed a macro buy signal
Bitcoin has undergone a strong rally since the cryptocurrency almost plunged to $0 in March. The cryptocurrency currently trades for $13,400, far above the March lows of $3,500.
Bitcoin has undergone a strong rally over the past two weeks. But technical trends show that the coin could surge even further in the weeks and months ahead.
One crypto-asset trader and Youtuber shared the chart below on October 28th. It shows that an important technical indicator formed a “buy” for the third time in the past few months.
This shows that Bitcoin has room to move higher in the weeks and months ahead
| Source: @ImWeeknight
This indicator is important as it has predicted critical retracements. Near the highs of February, a sell signal was printed, which was followed by a strong decrease toward $3,500 from above $10,000. The indicator also printed a series of buy signals during retracements during the previous exponential rally of 2016-2017.
Bitcoin Could Rally Higher in the Weeks Ahead
Bitcoin is expected to inch higher in the weeks ahead despite recent weakness in the market.
The cryptocurrency trader who in August predicted BItcoin would drop to $9,800 shared the chart below yesterday.
It shows that BTC’s recent price action is extremely similar to a period of consolidation after late July’s rally to $11,000. This fractal comparison indicates that Bitcoin will trend slightly higher to the middle of November, peak at $14,000, then continue to consolidate from there. Bitcoin moving to $14,000 from current levels would mark a 4.5% rally.
This expectation of a bullish consolidation lines up with uncertainty expected around the U.S. Presidential Election. Around the time of these elections, markets are often hesitant as there can be uncertainty about who the chosen candidate will be and how their policies will affect the economy.
Bitcoin Transaction Fees Rise to 28-Month High as Hashrate Drops
As of Wednesday, the mean fee per transaction, or the average transaction cost, was 0.00086764 BTC, the highest since June 2018, according to data source Glassnode. In dollar terms, the average transaction fee was $11.66.
Average fees in bitcoin terms have increased by 573% in the past 12 days alongside the cryptocurrency’s price rally from $11,200 to $13,800.
The high number of unconfirmed transactions comes amid Bitcoin hitting new multi-month highs. On Oct. 27, Bitcoin surpassed a $13,745 threshold, almost touching its previous peak of $13,970 recorded on June 26, 2019.
Amid the bullish trend, the Bitcoin network faced some issues in its key indicators recently. On Oct. 25, Bitcoin’s hash rate — a key indicator of the health of the Bitcoin network — tumbled from 151.1 EH/s on Oct. 24 to 116.3 EH/s.