With Bitcoin surpassing $20,000, the market is anticipating a strong October. The cryptocurrency is now trading between $19,712 and $20,479 at the time of writing.
Since the September 13 crash that rocked the global financial system, this has been the highest trading price BTC has reached.
As the BTC bulls have been trying to breach this resistance level for about a month, a break of the psychological $20K barrier is a major event.
For those looking to acquire Bitcoin or add to their existing holdings, the breakout could be a strong buy signal.
Perhaps this market rally is just what the crypto industry needs to end the crypto winter.
Take the bull by the horns
CryptoQuant claims that several indicators can provide reliable buy indicators for traders. One of these factors is the depletion of foreign exchange reserves.
A decline in bitcoin exchange reserves is an optimistic indicator as it indicates an increase in bitcoin purchases.
Shift in foreign exchange flow is always a consideration in this context. On October 4, the exchange rate was $4,765.83.
The large number of this indicator indicates a decrease in the selling pressure of Bitcoin. The Fear indicator is also rising and green, providing investors and traders with strong buy signals.
An increase in the RSI value could indicate an increase in investor confidence due to the recent developments in the cryptocurrency market or the psychological resistance level of $20,000.
Extended backlog in supply
Bitcoin’s price increase is not unexpected. Recent reports indicate that Bitcoin is experiencing a long-term accumulation.
Since September 27, the number of Bitcoin addresses containing between 100 and 10,000 Bitcoins has increased exponentially.
As of this writing, the 7-day moving average is providing dynamic support for Bitcoin’s rally. The current support is at $18,548, with resistance at $20,473.
With the current flow to the upside, we may expect prices to rise in the coming days. Meanwhile, Bitcoin is still struggling to surpass the $20,472 resistance level.
A breach of this price level will eventually push the price above the 78.60 Fib retracement level, which is located at $21229.
BTCUSD pair loses $20K handle, now trades at $19,954 on the daily chart | Source: TradingView.com Featured image from Fintwit, Chart: TradingView.com