- The volume of large trades by whales and investors rose 7.85%, indicating a bullish outlook
- At the time of writing, 55% of the top BTC traders had long positions, while 45% had short positions
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, is poised for an upward rally after an 8% price drop in recent days.
After breaking out of the descending channel pattern on October 28, BTC rose by more than 8%. However, the latest decline appears to be a price correction – a positive sign for the upcoming rally.
Bitcoin Price Analysis and Key Levels
According to AMBCrypto’s technical analysis, the cryptocurrency appeared to encounter resistance from a descending trendline within a four-hour time frame. If Bitcoin registers an upward rally, there is a good chance that the asset could break this aforementioned hurdle.
Source: TradingView
If BTC breaks this trendline and closes a four-hour candle above $70,000, there is a good chance the asset could rise significantly. Potential to reach a new all-time high in the coming days.
However, this bullish thesis will only work if Bitcoin maintains support above the $67,500 level. Otherwise it may fail.
At the time of writing, BTC appeared to be trading above its 200 Exponential Moving Average (EMA) on both the four-hour and daily time frames, indicating an uptrend.
BTC’s bullish on-chain metrics
Looking at this bullish outlook, it seemed that whales and investors have increased their participation. According to the on-chain analytics company InTheBlokBTC’s high transaction volume has increased by 7.85% in the past 24 hours. This could help increase the price of the asset.
Furthermore, BTC’s Long/Short ratio stood at 1.20, underscoring the strong bullish sentiment among traders. Meanwhile, Open Interest rose 2.9% over the past 24 hours, indicating growing interest and the formation of new positions from traders.
Source: Coinglass
Based on an analysis of Coinglass data, 55% of top traders had long positions, while 45% had short positions.
Price performance
At the time of writing, Bitcoin was valued at $69,100, having appreciated nearly 1.1% in the past 24 hours. During the same period, trading volume shot up 45%, indicating greater participation from traders and investors.