Following a significant upsurge, Bitcoin (BTC), the primary cryptocurrency by market capitalization globally, experienced a substantial decline in its market value. Between 26 and 29 October, the digital currency garnered considerable attention due to an 11% increase in price. Yet, this upward trajectory was short-lived.
Is the Price Correction of Bitcoin Expected to Continue?
Presently, investors and traders ought to recognize that a price correction subsequent to a notable gain signals potential positivity for the long run. Such corrections have the capacity to pave the way for a promising price upsurge in the future.
Consequently, the foreseen price correction might not have come as a surprise to some. Against the backdrop of this correction, certain large holders and institutional investors have undertaken substantial asset transfers worth hundreds of millions.
Recent Moves by Whales and Institutions
According to Lookonchain, a blockchain-based transaction monitoring platform, Mt. Gox’s wallet transferred 500 BTC, equivalent to around $35.04 million, from nearly 45,000 BTC valued at $3.11 billion during the early stages of the Asian trading session.
Furthermore, another major holder seized the opportunity and procured 550 BTC valued at $38.68 million amidst the price descent to a crucial support level.
Analysis of Bitcoin’s Technical Facets and Key Threshold
As per CryptoCrypto’s technical evaluation, BTC seemed to be in the process of reassessing its breakout point of $69,235 from the descending channel pattern in play at the time.
Given its recent price movements and past momentum, maintaining this level could set the stage for a significant rally in the upcoming days. Conversely, failure to hold this breakout could be deemed as a false breakout.
At the moment, BTC was trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a bullish trend. Furthermore, the Relative Strength Index (RSI) hinted at a potential upward movement, situated within the neutral zone, signifying neither overbought nor oversold conditions.
Optimistic On-Chain Metrics for Bitcoin
The favorable outlook for Bitcoin was bolstered by on-chain metrics. Coinglass, an on-chain analytics company, reported a Long/Short ratio of 1.09 at the current juncture, indicating a strong bullish sentiment prevailing among traders.
Moreover, the Open Interest witnessed a 17% surge – pointing towards heightened interest in the cryptocurrency among traders.