Although many were betting on October to bring Bitcoin back into the black, it did not happen. Although the digital asset has risen slightly above 5% in the 31 days of October, we are still far from a real renaissance. What if the big move was made in November? Let's take a look together!
Some indicators are bullish!
If October was bullish, many were looking forward to the tenth month of the year as the messiah. A messiah capable of reversing the direction of the market, which has been underway since last November. Ultimately, this did not happen and the bulls are now looking to November. With some legitimate hope. As trader Mustache recently pointed out, some technical indicators tend to validate the bullish hypothesis. In support of his bullish view on Bitcoin, the trader claims to use the NVTS signal. He believes that a big move is on the way for Bitcoin and that the market may soon give a big green candle.
The NVTS signal is inspired by the Network Value to Transaction ratio, a report that studies the relationship between the market capitalization of an asset and trading volumes. Unlike the NVT report, the NVTS signal uses the asset's 90-day trading volume as its denominator through its moving average. Mustache also believes in Bitcoin's bullish reversal through the signals sent by the Wyckoff method. It is a technical analysis approach that helps traders make decisions. This method is based on 4 phases of a continuously repeating cycle: accumulation, increase, decrease and distribution. Applying this method to previous Bitcoin cycles, it appears that we are currently in the accumulation phase.
Whales continue to hold Bitcoin!
To better understand the evolution of the price of a digital asset, the behavior of whales often offers an interesting reading grid. In recent weeks, the supply in circulation has declined slightly, which suggests that whales are holding the asset in their wallets. A phenomenon that Dan Lim, analyst of the CryptoQuant platform, explains in detail:
"While there is not yet as strong a movement as the start of the bull market, if investors react with DCA or fractional purchases depending on the situation, there is a good chance that good results will eventually appear."
Other traders, such as PlanB, also suggest that there may be an important move in November. Like others, he also sees the upcoming move as bullish. Like October, November is often a positive month for Bitcoin's price. Over the past 10 years, the BTC token has been bullish in November 70% of the time. With a special mention for 2013, when the mother of all cryptocurrencies saw its price rise by 453%, the largest one-month increase ever recorded by Bitcoin. If November 2021 was the month of reversal, November 2022 could see the course of history reversed!
At the time of writing, Bitcoin is trading at one quotation of $ 20.525. The mother of all cryptocurrencies still has a market cap of over $ 395 billion and a dominant position of 38,6%.
