The Bitcoin market is picking up speed as the “Uptober” trend begins. Over the past few days, Bitcoin has seen a solid recovery, bouncing back from September’s bearish phase. Now that the price is holding above $65K, various indicators are showing mixed signals. Analysts expect there might be a small pullback before a stronger Uptober rally in the next week.
Bitcoin Sets a Bullish Stage
As Bitcoin’s price breaks through resistance levels in recent hours, there’s been a spike in liquidations. Data from Coinglass shows that nearly $90 million worth of positions were liquidated in the last 24 hours, with sellers accounting for approximately $83 million. This indicates declining selling confidence as Bitcoin hints at continuing its “Uptober” rally.
Read more: Top Reasons Why Bitcoin Price Is Up Today
Data from IntoTheBlock reveals a significant spike in Bitcoin’s NVT ratio (Network Value to Transaction), climbing from a low of 33 to 208. This indicates that the network’s value has surged disproportionately compared to transaction volumes. The sharp rise in Bitcoin’s price has not been matched by increased investor activity, suggesting the asset may be overvalued. This could lead to a sharp price rejection before any strong recovery takes place.
The crypto community has been looking forward to “Uptober,” a term used for October because it’s usually a month of gains. While there haven’t been any major price rallies yet, today’s surge in Bitcoin’s price suggests that a more sustained rally could finally be starting, just as experts and traders have been predicting.
Michaël van de Poppe had earlier predicted the end of Bitcoin’s consolidation phase. On Sunday, he tweeted that Bitcoin had already tested the $62K level and expected the consolidation to wrap up within one to two days. He noted that a successful test of the $64K mark could trigger a major breakout in BTC’s price. Surprisingly, his prediction came true today as Bitcoin reached the $64K range.
What’s Next for BTC Price?
Bitcoin broke above the 20-day exponential moving average (EMA) of $63,517, but the bulls are unable to hold the price above the key resistance of $66K. Currently, bears are aiming for a drop below the immediate Fib channel. As of writing, Bitcoin price trades at $65,784, surging over 4.8% in the last 24 hours.
Sellers are now attempting to pull the price back below the 20-day EMA. If successful, the BTC/USDT pair could decline to the 50-day simple moving average (SMA) at $61K. The support zone between the 50-day SMA and $60,000 is crucial for the bulls to defend because a break below this level could pave the way for a drop to $57,500.
However, if the price holds strongly above the 20-day EMA, it would indicate that bulls are maintaining their momentum. In that case, the pair could rally to $69.2K. While this level may act as strong resistance, if the bulls overcome it, the uptrend could extend to $74,000.
