Following a noticeable surge, Bitcoin (BTC), the dominant cryptocurrency by market capitalization, experienced a significant price correction on the market. Between October 26-29, the digital currency grabbed considerable attention due to an 11% price increase. Nonetheless, this upward trend was short-lived.
Is the correction in Bitcoin’s price expected to persist?
Currently, investors and traders need to comprehend that a price correction subsequent to a notable surge is a favorable indication for the long run, potentially setting the stage for an extended price upsurge in the future.
Therefore, some may have anticipated such a price correction. Against the backdrop of this correction, notable whales and institutional players have reallocated assets worth millions.
Recent movements by whales and institutions
Per Lookonchain, a blockchain transaction monitoring tool, during the early hours of the Asian trading session, Mt. Gox’s wallet, holding around 45,000 BTC valued at $3.11 billion, transferred 500 BTC valued at approximately $35.04 million.
Moreover, another whale seized the opportunity and purchased 550 BTC valued at $38.68 million as the price dropped to a critical support level.
Bitcoin’s technical assessment and significant threshold
As indicated by CryptoCrypto’s technical analysis, the price of BTC, at present, seems to be retesting the breakout level of $69,235 from the descending channel price action pattern.
Given its recent price movement and historical momentum, sustaining this level could potentially lead to a substantial price surge in the upcoming days. Failure to hold this breakout level might be deemed a false breakout.
At the time of this composition, BTC was trading above the 200-day Exponential Moving Average (EMA) on the daily chart, indicative of an upward trending asset. Furthermore, the Relative Strength Index (RSI) hinted at a potential upward movement, residing in the neutral zone (neither oversold nor overbought).
Encouraging on-chain metrics
Bitcoin’s favorable outlook was reinforced by its on-chain metrics. Per Coinglass, an on-chain analytics company, BTC’s Long/Short ratio stood at 1.09, underscoring strong bullish sentiment among traders.
In addition, Open Interest witnessed a 17% surge, signaling an escalating interest in the asset among traders.