Bitcoin price: Quick recovery
Early this morning (November 1), Bitcoin - the world's largest cryptocurrency by market value witnessed an increase of 1.29%%, down to 109,017.16 USD.
This new price contributes to bringing market capitalization to 2,174 billion USD, up 14 billion USD. However, trading volume in the 24 hours was at 66.33 billion USD, up 18.68 billion USD.
Assessment and forecast
Bitcoin's sharp drop to $106,200 right before Halloween caused a panic in the market, "evaporating" nearly 5% in just a few hours. However, Bitcoin has since recovered nearly 4%, surpassing 108,700 USD, turning a price drop into a strong rally.
This "deep decline - strong rebound" trend has attracted the attention of the trading world. Many experts believe that this is not a random fluctuation but a deliberate adjustment, to reset market sentiment and create a premise for the possibility of price reversal. Current technical charts suggest that the shaking could serve a larger target.
After a sudden decline, the RSI - a measure of buying power compared to selling - has remained stable, although Bitcoin prices still created a lower bottom in the period of October 22 - 30. This creates a price increase phase, a signal that the selling side is gradually weakening while the buying side is gradually regaining control.
In addition, data from Glassnode on the NUPL (TTP/Loss Not yet Implemented) shows the rate of investors making a profit or loss, showing 0.483, the lowest in the past 6 months. Such a low level often appears when weak investors have left the market, while long-term investors are still steadfast in holding it. The decrease in NUPL also means that profit-taking pressure is very low.
The last time NUPL was at the same level was on October 17, Bitcoin increased by 7.6%, from 106,498 USD to 114,583 USD. This suggests that the recent decline may have eliminated short-term speculators, paving the way for a new recovery.
If this increase and decrease really marks a reversal point, the 111,000 - 111,400 USD zone will be the next important test.
The mid-term bottom line could be around $125,900 (near the previous historical peak), where some investors could take short-term profits. However, if Bitcoin falls below 106,200 USD, the price increase signal will be neutralized, the high possibility of the price will decrease to around 103,500 USD.
At that time, the market will need more time to stabilize before it can increase again.
