Bitcoin (BTC) declined to lows of $59,650 on Oct. 23 before a rebound took the price back above the $61,000 mark. The week had been a memorable one for Bitcoin as Wall Street opened its doors for the first Bitcoin (BTC) exchange-traded fund (ETF) on Oct. 19, with the listing of ProShares Bitcoin Strategy (BITO) on the New York Stock Exchange. The fund also pulled more than $1 billion in trading volume on its first day, while Bitcoin price notched a new record high at $66,999.
The second Bitcoin (BTC) futures-linked exchange-traded fund in the United States, Valkyrie’s Bitcoin Strategy ETF began trading on the Nasdaq on Friday. As of press time, Bitcoin was marginally up at $61,302 while Ethereum traded up by 4.03% at $4107. Selected Altcoin tokens, Shiba Inu (SHIB, +20.01%), Nexo (NEXO, +15.15%), Kadena (KDA, +26.18%), HedgeTrade (HEDG, +20.98%), Proton (XPR, +13.64%), Wilder World (WILD, +12.76%) were significantly up as the Altcoin market followed ETH’s move closely by posting a rebound.
Kadena (KDA)’s technology aims to solve the challenges with current blockchains such as speed, scalability, and security while enabling efficient transactions and sharing of data in a decentralized manner. Kadena has ticked higher since the start of October finally marking all-time highs of $4.93 on Oct. 23.
Shiba Inu saw an explosive rise to $0.00003452 on Oct. 23, gaining nearly 27%. Notably, SHIB’s price increases always aligned with a reduction in its total supply. The ”SHIB burn” aims to implement this while positively impacting the price.
Along these lines, steven Cooper, Co-owner of Bigger Entertainment indicated his support by creating playlists that help burn, stating ”We own #shib. We’re in this too! We’ve created playlists to help burn. All artists have agreed to donate up to 20% (20 per stream based on current price) of their royalties to the burn strategy. Each month we’ll burn and post it”.
In follow-up tweets, he says ”As promised, another 5 million burnt. #SHIB…We’ll burn another 5 million in the next day or so. We have several small artists burn coming as well”.
Meanwhile, on-chain analytics Santiment detected increasing whale transactions at the week’s start, stating that a price increase was deemed to follow if the trend sustains.
”#ShibaInu is back up to $0.00002885 while the spotlight is back on #Bitcoin and its close-in on its new #AllTimeHigh. But keep an eye on $SHIB’s whale transactions exceeding $100k. When these transactions come in bunches, price rises generally follow”
What Indicators Reveal on Bitcoin’s Bull Run
Caution remains the name of the game as Bitcoin dabbles around the $61k mark. Some analysts call for a wider BTC correction, stating that the Bitcoin Futures ETF launch could turn out to be an epic ”buy the rumor, sell the news” event, citing the selloff bout that followed the CME Bitcoin Futures and COIN listing.
On the topic of retracement, Crypto analyst Michaël van de Poppe says: “Overall; looking at $56–$59K as a good spot to buy Bitcoin.”
Cryptoanalyst Pentosh1 believes a close beneath $58k won’t be good for the bulls ”Imo closing below 58k would be a problem after an ATH break. From a market structure perspective would be pretty bearish. You’d want price closing above the old range (see next tweet from prev ath’s) not going back inside that range”.
Amid these concerns, indicators suggest that Bitcoin’s price run could still have some bullish fuel left in the tank.
On-chain analytics, Santiment notes that BTC prime indicators remain quite strong ”Bitcoin has kicked off the weekend by dipping back mildly to below $61k. That being said, two prime indicators our community uses often, active addresses & circulation, appear to remain quite strong for $BTC”
The market value-to-realized value (MVRV) Z-score also suggests the bull run has plenty of steam left.
Fear and Greed Index, Courtesy: Alternative.me
Notably, Bitcoin’s dip from recent all-time highs rather saw a switch in market sentiment from the previous week’s “extreme greed” to ”greed” suggesting that investor hopes of Bitcoin pursuing further gains haven’t changed that much.
Image Credit: Alternative.me, Santiment, Shutterstock