As Bitcoin surpasses $20,000, the market expects a strong October. The crypto is trading between $19,712 and $20,479 at the time of writing.
This is the highest trading price BTC has reached since the September 13 crash shook the global financial system.
As BTC bulls have been attempting to break this resistance level for almost a month, the break of the $20,000 psychological barrier is a key event.
However, for those looking to acquire Bitcoin or add to their existing holdings, the break can serve as a strong buy signal.
Perhaps this market rally is what the cryptocurrency industry needs to end the crypto winter.
Take the bull by the horns
CryptoQuant claims that numerous indicators can provide reliable buying advice for traders. The depletion of foreign exchange reserves is one such factor.
Decreased bitcoin exchange reserves are a bullish indicator as they point to an increase in bitcoin purchases.
A shift in the foreign exchange outflow must always be taken into account. On October 4th, the value of the exchange outflow was $47,655.83.
A high number for this indicator indicates decreased bitcoin selling pressure. The fear and green index is also rising, offering investors and traders strong buy signals.
A rising RSI reading can indicate an increase in investor confidence due to recent developments in the cryptocurrency market or the $20,000 psychological resistance level.
Extended accumulation in sight
Bitcoin’s price surge is not unexpected. Recent reports suggest Bitcoin is experiencing sustained accumulation.
Since September 27, the number of bitcoin addresses holding between 100 and 10,000 bitcoins has increased dramatically.
As of this writing, the 7-day moving average is providing dynamic support for Bitcoin’s rise. Current support is $18,548, resistance is $20,473.
Since the current trend is on the bullish side, we can expect the price to rise in the coming days. Meanwhile, bitcoin is still struggling to clear the $20,472 resistance level.
A break of this price level will eventually propel the price above the 78.60 Fibonacci retracement level which resides at $21,229.
The BTCUSD pair loses $20,000 and is now trading at $19,954 on the daily chart | Source: TradingView.com Featured Image by Fintwit, Chart: TradingView.com
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