• Despite recent volatility, there are several indicators that suggest BTC may be entering a bullish phase.

  • On the other hand, one important factor suggests that the correction will intensify in the short term.

Is “Uptober” still in the works?

Bitcoin (BTC) has experienced significant volatility since the beginning of October, performing worse than some expected. After all, this month has been a historically positive period for the entire cryptocurrency industry, leading the community to dub it “Uptober.”

Currently, BTC is trading just below $61,000, down 5% in 10 days. However, some important indicators suggest that a recovery may be on the horizon.

Over the past week, outflows from BTC exchanges have far outweighed inflows. As shown in the chart below, there have been huge red candles over the past few days, which suggests a possible shift away from centralized platforms and toward self-custody. This can be seen as a bullish sign as it reduces immediate selling pressure.

Next up is BTC’s MVRV (market value to realized value ratio), which recently fell below 2. Readings below this level typically indicate that the market is in an accumulation phase, signaling a potential buying opportunity.

Last but not least, we will discuss Bitcoin’s Relative Strength Index (RSI). The momentum oscillator, which measures the speed and change of price movements, approached the bullish zone of 30 on October 9 and is currently trading around 38. As of now, it is giving a “buy on close” signal.

Good thing for the Bears, too.

Contrary to the above factors that suggest a possible price recovery, there is one factor that suggests the opposite. According to X user Ali Martinez, this is the result of increased activity from whales, who have sold or reallocated 30,000 BTC (equivalent to nearly $1.9 billion) in the past 72 hours.

The development increases the circulating supply of the major cryptocurrency, which could cause valuations to plummet (assuming demand doesn’t keep pace).

Furthermore, the actions of these large investors could trigger panic among smaller investors, causing them to sell their holdings and accelerating a correction.

Finally, you can close Zonghao’s encryption base and see you next time!