After being supported by the crucial $18K level, the market is currently trying to recover, which might push the price as high as $22K. At about $20K, there is, nevertheless, strong resistance.
The volatility in the crypto markets over the last two weeks has been relatively low, especially when compared to the volatility in 2021. Over the past two weeks, the price of Bitcoin has been consolidating near the $20k ATH of the prior bull market.
In a CryptoQuant Quicktake published on Wednesday, analyst MAC.D noted that institutions have yet to become bullish on the Bitcoin market, raising the possibility of a price crash when the Fed announces its rate hike for November.
The expert said that the asset price’s most recent increase is unsustainable. Notably, the analyst based his claims on the fact that neither the Coinbase Premium Index nor the Fund Volume Index showed any appreciable adjustments. While the former (Coinbase Premium Index) is good, MAC.D says that since June, there have been no notable changes, while the latter (Fund Volume Index) is still declining.
“Looking at the above two indicators, it will be difficult to think of it as an upward cycle conversion because there is no clear Institutional investors buying trend. If prices rose without buying by Institutional investors before the FOMC rate announcement in November, it is likely to lose its upward momentum and dump it,” he said.
Some investors are feeling confident and excited since Bitcoin has recently outperformed other equity markets and managed to recapture and hold the $20k price threshold. Positives include the fact that miners appear to have stopped selling, which appears to have reduced selling pressure. Although popular Bitcoin expert Ali Martinez noted that this is not always the case in bad markets, October is often thought of as a favorable month for Bitcoin.
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