'Uptober' lived up to its billing as Bitcoin secured its highest ever monthly close.
'Uptober' lived up to its billing as Bitcoin secured its highest ever monthly close. However, much of the weekend trading action was sideways, and that theme has largely continued again today - it very much feels like the market is on hold. Consolidation is always a good thing post an ATH, and should BTC climb back and see a new high, it will have set a solid foundation for the next leg higher.
The difficulty adjustment has also move higher for the 8th time in succession, increasing the mining power required to create a block.
But let's not feel too sorry for the miners, their profitability may have declined, but we can see from the chart below, their hodling behaviour has seen the BTC they have held on to, appreciate significantly this year.
The miners' behaviour, coupled with the trend in falling exchange balances will eventually lead to discussions around the circulating supply of Bitcoin. Less than 14% of all Bitcoin is available to trade on exchanges. Should (when?) the SEC ever approve a physical ETF, then a supply shock will become a self-fulling prophecy, as the headlines detailing the reducing supply solidify the belief that hodling forces prices higher.
It could well be the major story of 2022.
Bitcoin has rotated around $61,750 for the last 48 hours. Dips have been met with buying, as the bears take the fight to the bulls. A continuation of this behaviour will likely see prices retest $58,850, and possibly $56,670.
There is currently a lack of buyers willing to push the price back towards $64,890, and the longer this persists, we could find the dip buyers decide that better prices are worth waiting for.
Above $64,890 and the market will push to retest $67,000 and the all-time highs, below $56,700 and a deeper retrace will likely move Bitcoin back towards $53,000 and $50,765.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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