Bitcoin has ended an exciting week experienced in a while. That’s because the asset’s October decline extended the bearish bias since mid-August. Consequently, the latest rally eased the tension amid the market downturn, translating to excitement during the previous week’s rally.
However, can BTC bulls sustain the current uptrend for a while? Though BTC saw a bullish revival with its 10% gain over the previous week, its volatility plunged substantially over the past three days. However, can we expect uptrend resumptions or selling momentum?
Let’s check some indications that could clarify possible targets from the prevailing range. CryptoQuant data confirmed that retail buying pressure fueled the latest rally. That means institutional & whale participation was considerably low.
Low Institution and BTC Whale Participation
That analysis remains logical as the recent rally didn’t see long 24hr candlesticks to confirm massive purchases. Nevertheless, that didn’t imply the absence of whale activity. The crypto saw bullish momentum from wallets with 10,000 – 100,000 $BTC throughout the month.
The previous week’s performance noted upticks in buying momentum from wallets with 100 – 100,000 tokens. Wallets with 100 – 1,000 coins also recorded net outflows on the week. That confirmed profit booking by whales as BTC prices soared.
Meanwhile, the 100,000 – 1 million cohort recorded swift outflows on October 25. This whale group possibly represented exchange wallets. The above assessment indicated that accumulation by leading addresses leveled.
Moreover, increased exchange reserves over the past week were visible. That suggested that most traders held their Bitcoin on exchanges. Moreover, this indicated that investors might not be confident in the bulls.
BTC’s longer-term holder SOPR read 0.69 during this publication. That confirmed that longer-term holders exhibited losses. The above analysis suggested impending bearish retracement for the leading crypto.
That means Bitcoin might stretch its stay around the lower range. Evaluating the price actions show Bitcoin encountering resistance around the value area of $20,800. The level previously served as resistance and support.
Is BTC Okay?
Bitcoin will hardly sustain the near-term surge without institutional and whale demand. After which, increased sell momentum will likely welcome another bearish wave. Meanwhile, investors should watch potential bullish demand return from institutions and whales. Such tendencies would translate to continued bullish momentum.