Key Points
- Bitcoin [BTC] has experienced a rapid surge beyond the $64k resistance level, with a bullish outlook.
- The record-breaking Bitcoin spot ETF inflows likely aided this 5.1% price move.
Bitcoin [BTC] has seen a substantial surge, comfortably breaking through the $64k resistance level that previously opposed the bulls in October. This breach occurred on the 14th of October and subsequently retested the channel highs.
Impact of Bitcoin Spot ETF Inflows
This price move, a notable 5.1% increase, was likely influenced by the record-breaking inflows into Bitcoin spot ETFs. However, it’s important to note that the ETF share represents only a fraction of the total trading volume. This leaves investors pondering whether to anticipate a breakout or another rejection.
Channel Highs vs. Range Breakout
Throughout October, BTC has been trading within a short-term range that extended from $60.2k to $64.1k. The resistance was easily overcome during Monday’s daily trading session, but it faced opposition at the $66.5k mark. This resistance level coincided with the descending channel’s highs, as well as with the local highs from the 27th of September. A session close above $66.5k would signal strong bullish conviction.
The OBV, however, was unable to clear the local highs and was noticeably lower, while the price was at the same resistance at $66.5k. This indicated that recent buying volume was not as high as the sessions where BTC noted losses.
The 1-month lookback period showed a concentration of liquidation levels at $66.6k to $67.4k. The proximity of this liquidity pool could attract prices higher before a reversal toward $60k.
It remains uncertain whether Bitcoin is primed for the anticipated bull run in Q4 2024, or if more consolidation lies ahead. Based on the liquidation heatmap and the OBV, a rejection seems likely.
A bullish reaction could follow at the former range highs at $64k and could present a buying opportunity. However, swing traders should be prepared for a deeper dip and manage their risk accordingly.
Please note: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
