Bitcoin price stayed roughly flat over the past 24 hours, settling at approximately $54,000
It seems that after rallying to $55,000 and falling, Bitcoin price is trying to hold steady above $54,000. Ater rallied an impressive 8% yesterday, driven by concentrated buying, trading volumes are expected to remain elevated, supporting continued upside into Q4.
BTC/USD 4-hour chart | Source: TradingView
Historically, Bitcoin price produces positive returns in the fourth quarter
According to the Blockchain data, there was a large buy order behind yesterday’s Bitcoin rally, as AZCoin News reported. It remains unclear why these Bitcoin whales are buying on-the-spot exchanges instead of an over-the-counter desk.
Bitcoin spot trading volume has increased over the past few days, reflecting a resurgence in buying activity. The past few months have been relatively quiet in the crypto markets, although the sell-off in September may have encouraged some buyers to stay on the sidelines.
The data shows a continued accumulation of BTC by long-term and short-term holders, who are beginning to realize profits based on their costs or the initial value or purchase price of an asset or investment for tax purposes. Analysts monitor the use of leverage, especially in the BTC futures market, to determine if traders are convinced behind the recent bull run.
Historically, the fourth quarter of the year has tended to generate positive returns for bitcoin, which is one reason why some analysts remain bullish. October is generally more volatile than September (average annual volatility is 66% vs. 61%), and BTC tends to end up around 13% higher when considering historical averages.
And while the possibility of further upside this quarter, some analysts hope the US Securities and Exchange Commission’s possible approval of a Bitcoin ETF later this month could prevent a further upside block the short-term upside momentum, as happened after previous significant events.
And by the time BTC maintains its $54,000 price zone, many expect the altcoin season to have begun. According to crypto analyst Spirit Jonber Kim from CryptoQuant, maybe we already have the signal for the altcoin season.
- BTC inflow means is on a slightly increasing trend. However, considering MA 144, the level for BTC selling(usually above 1.5) has not yet been received. Instead, it may be a reserve that can buy alts in line with an uptrend.
- Leverage is relatively low through the sharp rise of BTC prices. It seems that the high-lev longs were closed due to technical resistance was close.
- It seems more realistic for the funds to move into alt rather than throwing BTC right away.
At the moment, most of the market is in green, increasing slightly from 2% – 6% in the last 24 hours. The overall cryptocurrency market cap now stands at $2.294 trillion, and Bitcoin Dominance is 44.4%.
Besides, the good news today is, as AZCoin News reported, regulators have green-lighted a new exchange-traded fund that provides exposure to “Bitcoin Industry Revolution Companies.” Maybe this is the reason for the rally today.
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