Key Points
- Bitcoin [BTC] experiences a bullish outlook, surpassing the $64k resistance level in October.
- The Bitcoin spot ETF inflows likely facilitated this 5.1% price move, despite being only a fraction of the total trading volume.
Bitcoin [BTC] has demonstrated a promisingly bullish outlook, according to various social media posts.
Breaking the October Resistance
The cryptocurrency saw a remarkable surge beyond the $64k resistance level that had been opposing bullish investors in October. This resistance was successfully overcome on the 14th of October, and the channel highs were subsequently retested.
The impressive 5.1% price move was potentially facilitated by the record-breaking Bitcoin spot ETF inflows. However, it’s important to note that the ETF share only represents a fraction of the total trading volume.
Range Breakout vs. Channel Highs
Throughout October, BTC traded within a short-term range that extended from $60.2k to $64.1k. The daily trading session on Monday easily surpassed the resistance, but encountered opposition at the $66.5k mark.
This resistance coincided with the descending channel’s highs, as well as with the local highs from the 27th of September. A session closing above $66.5k would be a strong sign of firm bullish conviction.
However, the OBV was unable to clear the local highs, remaining noticeably lower, while the price was at the same resistance at $66.5k. This indicated that the buying volume in recent weeks was not as high as the sessions where BTC noted losses.
The 1-month lookback period showed a concentration of liquidation levels at $66.6k to $67.4k. The proximity of this liquidity pool could potentially attract prices higher before a reversal toward $60k.
Whether Bitcoin is ready for the anticipated bull run in Q4 2024, or whether more consolidation is ahead, remains uncertain. Based on the liquidation heatmap and the OBV, a rejection seemed likely.
A bullish reaction could follow at the former range highs at $64k and could present a buying opportunity. However, swing traders should be prepared for a possible deeper dip and manage their risk accordingly.
Please note that the information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
