KuCoin Weekly Technical Overview: Extreme Greed Kicks In As Bitcoin Breaches its Largest Resistance
The Bitcoin market is back in the bullish trajectory as the prices do not seem to pause heading higher. In the current bull run, it is evident that the institutional buyers have got their eyes only on Bitcoin and even Ethereum to an extent at the moment. Because the recent price action of cryptos is observed, it can be ascertained that the market cap is growing only in the top two largest cryptocurrencies in the world - Bitcoin and Ethereum.
Of course, altcoins are eventually trying to participate in the current bull run but remain laggards relative to Bitcoin. From a technical perspective, Bitcoin is trading at the highs made in May, while most altcoins are struggling to break out of the consolidation. But, considering the momentum altcoins can carry when the big buyers enter the market, it would not be surprising to watch altcoins overtake Bitcoin. However, BTC is in the lead by a significant margin.
Bitcoin Price Update
The Bitcoin market has presented itself with large numbers at the end of the third week of October.
After hovering between $40,000 and $45,000 for an extended period, the bulls took charge to make new highs on the smaller timeframes. From the beginning of October, the Bitcoin price market has not seen even a single big red day with a drop of over 3%. Within the end of the first week, BTC saw levels around $55,000, and prices consolidated after that.
But with barely any major retracements to the downside, the prices continued to reach the much anticipated $60,000 mark after taking a dip of $55,000 for a short period.
In two weeks or so, the BTC cryptocurrency price shot north by a whopping 45%, which is certainly significant for a trillion-dollar worth market.
As of writing, the world’s largest cryptocurrency trades at $60,900 amid setting at high up to $62,947. And since the past 24 hours or so, the prices are dipping gradually, in the form of profit-taking.
Bitcoin Mining a Major Contributor to Current Bitcoin Rally
With evidence of considerable support from mining farms, Bitcoin mining is one of the consistent sources of positive confidence. The top cryptocurrency is revamping its mining operations to compensate for the processing power lost due to a mining restriction in China.
As a result of the shift in the mining dynamic, the United States has surpassed China as the world's largest miner. Apart from the institutional players going long on Bitcoin, a bullish change in the mining situation is also one of the major reasons for BTC inching its all-time highs.
Extreme Greed in BTC as the Index Scores 79
The Fear and Greed Index that represents the sentiment of market participants in the BTC market has gone into extreme greed. The index has been hovering to the right as the market is heading higher almost every trading day. Although the general interpretation of extreme greed presents an upcoming correction in the market, it certainly does not consider the market’s technical price action.
Bitcoin Breaches $58,100 Resistance Level
Bitcoin has undoubtedly had an exceptional thus far. Despite its negative newsflash every and then, the Bitcoin market has always been able to sustain them gracefully. Thanks to the believers of Bitcoin and cryptocurrencies who have seen the downturns as a dip and not a crash.
Getting started with the technical aspects of Bitcoin, the market is experiencing a great move to the north as the prices have finally reached the $60k mark. After being put into an arguable bear cycle for over five months, the bull seems to have officially taken back control of the market by pushing the market higher and higher with compelling momentum.
The previous bull run certainly gauged analysts predict to an extent the levels where the market could possibly take support to resume its uptrend. And the price action has surprisingly played out exactly as per anticipation.
On the bigger picture, two price levels stood significant for the buyers and sellers. The first being the demand zone at $30,000 and the second the resistance at $58,100. After the market took a massive dip from the resistance level, the demand level was where most of the market participants expected the price to take support and turn to the upside. And the market did pan out the same way by holding the demand zones intact.
Bitcoin Price Chart on the Daily Timeframe | Source: BTC/USDT
After accumulating most of the positions between $30,000 and $40,000, the bulls are heading higher and picking momentum every of the way. The last couple of days was rather interesting for BTC, as it was fighting its largest resistance. However, with the price trading around $60,800, the resistance has been broken on the price front. It would be appealing to watch if the price plunges back into the resistance, leaving a fake-out in the bottom like the previous two times, or the trend simply continues to make higher highs and higher lows, ignoring the five-month-old levels.
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