Bitcoin (BTC) abruptly hit one-week highs on Nov. 2 after days of sideways action ended in a brief but strong breakout.
BTC/USD 1-minute candle chart (Bitstamp). Source: TradingView
Upside action returns to BTC/USD
Data from Cointelegraph Markets Pro and TradingView followed sudden volatility on BTC/USD as it gained over $1,500 in minutes.
At the time of writing, $63,400 formed a focus amid the pair’s highest levels since Oct. 25.
#Bitcoin ready to break out? pic.twitter.com/EHQnwyke7D
— Michaël van de Poppe (@CryptoMichNL) November 2, 2021
For popular analyst Filbfilb and others, the move was anticipated, with chart signals flashing volatility on Monday.
“Another bit of a nothing day for bitcoin.. still struggling around the MR line… next touch on resistance will be a 4th touch of the downtrend so a retest and breakout fits with what I’m looking for,” he summarized to Telegram channel subscribers alongside an annotated chart.
“We haven’t lost the MR line & found resistance there, but I’m expecting the next move to happen in the next 48 hours.”
Others highlighted Bitcoin’s relative strength index (RSI) now being above 70 — a classic “prelude” to an incoming extended rally.
Small sample size but historically a 100% accurate prelude to a multi month rally pic.twitter.com/McA39f9Fpv
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) November 2, 2021
As Cointelegraph reported, RSI levels are being keenly watched to determine both a breakout and an ideal market exit opportunity.
Funds squeeze the Bitcoin supply further
Bullish tendencies have been stacking up across the Bitcoin ecosystem as November starts.
The latest data shows that in addition to on-chain metrics in the green, investment habits are echoing February — the run-up to previous all-time highs of $64,900.
Specifically, funds purchased more BTC in October than miners produced — a first since the second month of the year.
Bitcoin funds purchases table. Source: Jarvis Labs
Miners themselves have become accumulators in 2021, with only May’s China debacle causing a rift in the trend.
Bitcoin miner reserves chart. Source: CryptoQuant
Source: Cointelegraph
