$20K is becoming more and more of a stable support price line.
In terms of technical analysis, $20K is becoming more and more of a stable support price line for bitcoin. Last week, BTC reached $20,961k, but was unable to get past the $21k level, but added 6% over the week. Further growth is in question on the short-term horizon, but the $20,000 level also looks pretty comfortable to lose.
In the early months of 2019, during the bear market, 30% of all bitcoin supply was near the average realized price, which is the value that investors paid on average for these digital assets. In April 2019, the market price of bitcoin rose above the realizable price level, after which the market began to move into a bullish phase.
The situation now is similar: 20% of bitcoin supply is currently within a corridor of the realized price of $17,000 to $22,000. This has been observed over the past three months. Consolidation is already high, although it could still rise for a while, after which the entry into the “bullish” phase of the market becomes very likely, and in 2.5-7 months, given the experience of 2019, – such estimates give Glassnode.
On the positive side, it is worth noting that 56% of all bitcoin supply is currently in the plus side, and long-term investors have an even higher figure of 60%. Given this, bitcoin selling pressure on the price of the No. 1 cryptocurrency is easing, which also contributes to the folding of circumstances towards the market moving into a bullish phase.
Meanwhile, Arcane Research said that the U.S. Federal Reserve’s rate decision, which will appear on the evening of November 2, could cause strong volatility and a decline in bitcoin prices to $18,600, but it will likely be a short-lived moment.