October 31, 2023
Bitcoin bulls are maintaining a strong position above the $34,000 mark despite various pressures in the market. Traders are closely watching the market direction as they assess whether the ongoing bullish rally will continue or start to fade.
According to CryptoQuant research head Julio Monero, there are two significant on-chain developments that suggest a potential pause in the Bitcoin price rally. Firstly, short-term holders have been selling Bitcoin at a 6% profit, marking the highest profit margin since April. This indicates profit booking by short-term holders following the BTC price reaching a monthly high of $35,150. Secondly, whales have been making significant transfers of BTC to crypto exchanges Coinbase and Binance, with the highest daily level of activity since June. These developments suggest a potential slowdown in the Bitcoin price rally.
Trader Skew notes that Bitcoin open interest (OI) remains relatively flat, with little chasing or significant movement. Bybit OI has increased by approximately 8,000 BTC. On the other hand, Crypto Tony predicts that the BTC price will likely encounter resistance near $36,000 and then experience a rejection.
As of now, the BTC price has experienced a 15% jump this week and is currently trading at $34,100. The 24-hour low and high are $33,416 and $34,238, respectively. However, trading volume has decreased by 18% in the last 24 hours.
While the US Fed's preferred gauge to measure inflation, core PCE, has cooled down to 3.7%, there has been an increase in core PCE on a month-over-month basis due to high energy prices.
Despite various pressures in the market, Bitcoin bulls are holding strong above the $34,000 level. However, on-chain developments suggest a potential pause in the Bitcoin price rally. Traders are closely monitoring the market direction to determine whether the bullish rally will continue or start to fade. It is important to keep an eye on key indicators such as open interest and trading volume to gauge the market sentiment. Additionally, the inflationary environment and energy prices may also impact the Bitcoin price. As the market evolves, it is crucial for investors to stay informed and make well-informed decisions.
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