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The recent surge in Bitcoin price appears to align with a shift in investor behavior, according to a CryptoQuant analyst known as ‘crypto sunmoon.’ In a post on the CryptoQuant QuickTake platform, the analyst observed that the current bull market is driven by leveraged bets, particularly in derivatives markets. This trend is noteworthy as it contrasts with past market cycles where increased deposits often accompanied BTC bull runs to spot exchanges. Related Reading: Bitcoin Volatility To Peak By November 8 As ‘Trump Trade’ Intensifies – Report Leveraged Bets’ Role in Bitcoin Price Growth Elaborating further on leverage bets involves using borrowed funds to multiply the size of an investment. For example, with 2x leverage, a trader can open a position twice as large as their capital. In Bitcoin futures trading, this approach can be profitable during upward price movements but also comes with risks. If the market shifts against their position, traders can face significant losses called liquidation. The analyst notes that the inflow of Bitcoin into derivatives exchanges signals increased confidence among investors, suggesting a belief in further price gains. This confidence can create a feedback loop, where rising prices encourage additional leveraged bets, further fueling the bull market. Bitcoin bull market begins with leveraged bets “The bull market will continue as #bitcoin continues to be deposited into futures exchanges for leveraged bets using derivatives, rather than into spot exchanges for selling.” – By @t0_god Link ????https://t.co/1egL7L2YoO pic.twitter.com/uuQPEiSWtb — CryptoQuant.com (@cryptoquant_com) October 30, 2024 BTC Price Performance And Outlook With Bitcoin’s price showing an 8.2% increase over the past week, currently trading at $71,804, the role of leverage becomes increasingly relevant. Notably, BTC saw a slight retracement from its recent 24-hour high of $73,562 yet continues to maintain upward momentum. This steady price growth and leveraged inflows signal broader investor optimism toward Bitcoin’s future price potential. According to the analyst, as long as Bitcoin continues to flow into futures rather than spot exchanges, the bullish sentiment will likely remain strong. Notably, leveraged bets happen to be just one of the several metrics of Bitcoin, suggesting a potential continuity of the ongoing increase in price. So far, the Stablecoin Supply Ratio Oscillator (SSRO) has seen low levels not seen since 2022. The decrease of this metric into lower levels means more stablecoins are being converted to BTC, therefore suggesting increasing demand for the asset. Related Reading: Dormant Bitcoin Wallet From 2012 Awakens, Moving Millions—BTC Price To Dip? Meanwhile, the technical outlook isn’t left in one of the several metrics indicating more rally for BTC’s price. Earlier today, the renowned crypto analyst Ali highlighted that historically, BTC has increased to 1.618 and 2.272 Fibonacci retracement levels. Should the asset follow the same pattern this time, Ali predicts BTC will surge to a price between $174,000 and $462,000. In past bull cycles, #Bitcoin has peaked between the 1.618 and 2.272 Fibonacci retracement levels. Following a similar pattern, the next $BTC top could land between $174,000 and $462,000! pic.twitter.com/KUq51Tt57z — Ali (@ali_charts) October 30, 2024 Featured image created with DALL-E, Chart from TradingView
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Ethereum Price Consolidates Gains: Is It Ready for Another Push?
Ethereum price started a fresh increase above the $2,600 resistance. ETH is consolidating gains and might aim for a move above the $2,720 resistance. Ethereum started a decent increase above the $2,650 zone. The price is trading above $2,600 and the 100-hourly Simple Moving Average. There is a key bullish trend line forming with support at $2,540 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to rise if it clears the $2,650 and $2,720 resistance levels. Ethereum Price Eyes More Gains Ethereum price formed a base above the $2,550 level and started a fresh increase like Bitcoin. ETH climbed above the $2,600 and $2,620 resistance levels to move into a positive zone. The price even broke the $2,650 resistance. A high is formed at $2,719 and the price is now consolidating gains. There was a minor decline below the $2,680 level. The price dipped below the 23.6% Fib retracement level of the upward wave from the $2,489 swing low to the $2,719 high. Ethereum price is now trading above $2,600 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $2,540 on the hourly chart of ETH/USD. On the upside, the price seems to be facing hurdles near the $2,650 level. The first major resistance is near the $2,700 level. The main resistance is now forming near $2,720. A clear move above the $2,720 resistance might send the price toward the $2,880 resistance. An upside break above the $2,880 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,000 resistance zone. Downside Correction In ETH? If Ethereum fails to clear the $2,650 resistance, it could start a downside correction. Initial support on the downside is near the $2,600 level and the 50% Fib retracement level of the upward wave from the $2,489 swing low to the $2,719 high. The first major support sits near the $2,540 zone. A clear move below the $2,540 support might push the price toward $2,500. Any more losses might send the price toward the $2,450 support level in the near term. The next key support sits at $2,320. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is now above the 50 zone. Major Support Level – $2,600 Major Resistance Level – $2,650 NewsBTC
Bitcoin Surges Past 100 Million Won, Sparking Crypto Investment Surge in South Korea
According to COINOTAG, recent analysis from Korea Daily indicates a significant surge in crypto investments in South Korea, coinciding with Bitcoin’s price surpassing 100 million won as of October 31. NewsBTC
