Bitcoin has recovered its lost ground. From last night to this morning (18th), it tested the $66,600 level several times and quickly moved upward. The buying power this time was too strong and it could not go down at all. At the time of writing, it successfully stood back to $68,191, with a 24-hour increase of 1.23%.
This week, the classic scenario was played out again: Bitcoin rose, but the altcoins did not; Bitcoin fell, and the altcoins followed suit.
The previously popular currencies have begun to cool down in the past few days.
There is no need to be surprised by this trend, because after seven months of torture, we should have learned to accept it.
Now the trend is clear. With the continuous influx of funds from ETFs, Bitcoin is bound to enter a bull market.
The remaining test is the coins in each person’s hand, to see if they have 100% confidence, whether they can hold on to them, and whether they can eliminate interference.
The most important thing to avoid when trading cryptocurrencies is being impatient. It is normal to have no market conditions, and it is also normal to have floating profits and losses. Relax and take it slow. Over time, if you can endure the years that others cannot, you will naturally stand out and become the winner.
Many people are wondering: Why did BTC suddenly take off, while many altcoins fell instead, and some altcoins did not follow the rise. Why is this?
In the cryptocurrency world, the total amount of liquidity is very limited. Once the price of Bitcoin rises, capital flows will converge in its direction, and altcoins will naturally encounter a situation where funds are "sucking blood". When Bitcoin enters a sideways phase, some altcoins will have the opportunity to start the market.
Currently, market expectations for a 25 basis point rate cut at the Federal Reserve’s interest rate meeting on November 7 have reached approximately 93%. Therefore, in November, the most significant impact on the currency circle will be the U.S. election. If Trump wins the election, it will be good for the entire encryption industry, and currency prices will most likely rise sharply.
CEX Bitcoin reserves hit a record low, this wave is really sprinting towards 70,000 US dollars!
What investors are most concerned about now is whether Bitcoin's rise will continue. After all, it has risen by more than 15% in the past week.
In this regard, Cointelegraph posted a picture on the social platform X yesterday, pointing out that the current Bitcoin reserves on centralized exchanges are about 2.43 million, which has hit a new historical low. As the Bitcoin reserves of exchanges continue to decline, it may mean that investors are more inclined to transfer Bitcoin to cold wallets, which will limit the market supply and may indicate an increase in Bitcoin prices.
According to Coinglass data, after the Bitcoin price reached an all-time high of $73,000 in March this year, the Bitcoin reserves have been decreasing, but the BTC price has not set a new high, but has continued to fluctuate.
Therefore, in the short term, this indicator does not seem to be completely consistent with the trend of Bitcoin. But I think that in the past, when the liquidity of Bitcoin was not so good, this indicator may have sufficient reference. However, with the development of the market, coupled with the birth of Bitcoin OTC market, futures, and spot ETFs, the reference of this indicator may be weakening, at least the correlation has decreased, and this indicator is a benign bullish indicator!
My personal opinion is: This is a real breakthrough, and the probability of stabilizing at 70,000 US dollars is very high.
The previous few attacks on $70,000 had high and low points moving downward, while the recent two high and low points moved upward.
In addition, the long position volume has gradually increased, and the long K-line entity is also gradually increasing.
These are all signs that the bears are beginning to weaken and the bulls are beginning to become stronger.
The above are conclusions drawn through technical analysis.