9 October 2023
Bitcoin price analysts are pointing to a combination of high timeframe indicators that suggest the bear market for the leading cryptocurrency may be over, hinting at an impending upward surge.
TechDev, a prominent crypto analyst known for insightful market analysis, recently shared a compelling perspective on social media platform X. Drawing parallels to historical trends, TechDev contends that Bitcoin is currently in a familiar position, reminiscent of the preludes to the 2016 and 2020 bull markets.
Bitcoin Price Analysis: Volatility Contraction Signals Imminent Breakout
To illustrate this perspective, TechDev presented a chart featuring monthly candles, Bollinger bands, and a specialized indicator showcasing the logarithmic width between the bands in relation to the 200-month moving average. What is particularly intriguing about this chart is how Bitcoin’s Bollinger bands, which gauge relative volatility, have significantly contracted, implying a forthcoming breakout to the upside.
What #bitcoin has looked like before heading north… pic.twitter.com/aDCCAKSDli
— TechDev (@TechDev_52) October 6, 2023
This influential analyst further points out that Bitcoin is not alone in its quest for a bullish breakout; the broader altcoin market is also in contention. To make this comparison, TechDev references the “OTHERS” chart, measuring the collective market capitalization of all cryptocurrencies except Bitcoin and Ethereum (ETH).
In TechDev’s analysis, Bitcoin has forged crucial support levels at the inception of a long-term bullish momentum. Simultaneously, the “OTHERS” index has managed to break through a long-standing downward resistance. These developments collectively indicate that both Bitcoin and the altcoin market are primed for significant moves, potentially marking the end of the bear market phase.
As of the latest data from CoinGecko, Bitcoin’s price stands at $27,916 with a 24-hour price movement of 0.0% and a marginal 0.1% decline over the past week. This relative stability suggests that investors are holding their positions, awaiting the anticipated breakout.
Whale Activity Sparks Speculation
Meanwhile, in a surprising turn of events, a dormant Bitcoin address that had remained inactive for three years suddenly sprung back to life. Approximately 5,000 Bitcoins, valued at around $140 million, were transferred from this address. Notably, this substantial transfer was divided among three different addresses, as highlighted by PeckShield, a renowned blockchain security firm.
#PeckShieldAlert A dormant $BTC address 1LH1dY…ztTz (which has been inactive for 3 years) has transferred ~5K $BTC (~$140M) to 3 addresses
bc1q5rpq5wppf5tua2yd97nscp8gpz8fq0w740g22c
34aed6ryXt6ZCHv6k2WPiyy7ap5VbyHr8D… pic.twitter.com/kLj1SeEQSh
— PeckShieldAlert (@PeckShieldAlert) October 8, 2023
The implications of this significant whale movement on Bitcoin’s price remain to be seen. Such sizeable transactions often draw attention and can have varying effects on market sentiment. Traders and investors will be closely monitoring how this unexpected development plays out in the coming days and weeks.
The convergence of multiple high timeframe indicators suggests that Bitcoin may be on the cusp of a bullish resurgence, reminiscent of previous market cycles.
As Bitcoin continues to vie for an upward breakout alongside the broader altcoin market, the crypto community eagerly anticipates the potential end of the bear market and the start of a new phase in the digital asset landscape.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from The Drive