Given BTC price’s continuous rejection of the $35k zone, it is possible that we may witness Bitcoin correction to $31k.
The price of Bitcoin has broken through the $35k resistance for the third time since the start of November. It shattered the long-term consolidation range between $25k and $31k on October 22. Although the price has been on the rise since then, the overall signals have been mixed, with some analysts expecting retracements and others anticipating a continued upward trend.
When BTC experienced the breakout from the $25k to $31k sideways consolidation that began in March, the price closed at $33k, leading many to believe it marked the beginning of the long-awaited bull run. The price continued its ascent and almost reached $36k the following week, but the entire move was rejected, causing the price to close at $35k at the end of the week. This closure at $35k also marks the first time BTC has closed around that price since April 2022. The new yearly high has been met with optimism among many Bitcoin advocates, rekindling hope for those who had lost faith during the extended crypto winter.
Two Possible Directions for Bitcoin Price
Given the price’s continuous rejection of the $35k zone, it is possible that we may witness a price correction to $31k, as it seems unlikely to break back into the long consolidation below $30k.
On the other hand, when considering various fundamental and market sentiment factors such as renewed hopes for Bitcoin, the anticipation of spot ETF approval, which could potentially drive the BTC price to unprecedented highs, and the much-anticipated bull run in 2024, among other reasons, we may see the price steadily moving higher. Technical analysis also suggests that if Bitcoin successfully breaks above the $35k zone, we can expect a continued move toward $47k, with minor resistance levels around $39k and $44k.
Crypto Rover, a popular Bitcoin expert who shares his thoughts about the long-term potential of Bitcoin with his more than 500k followers on X, believes that crypto spot ETF approval and the involvement of BlackRock will push Bitcoin to $100,000. This view is also supported by many analysts who believe that the participation of institutional giants in the ETF lobby will inject hundreds of billions of dollars into Bitcoin, thus driving up the price.
Metrics Are Positive in Anticipation of a Continued Bullish Move
Data from Altcoin Daily reveals that the number of Bitcoin addresses holding more than $1,000 has reached an all-time high, now totaling 8 million. This increase undeniably reflects the growing faith in crypto and some of the underlying factors contributing to the price rise.
#Bitcoin addresses holding $1K+ just hit a new ATH
— Altcoin Daily (@AltcoinDailyio) November 7, 2023
Data from Glassnode also suggests that the number of coins held by long-term Bitcoin holders has reached an all-time high, with many people accumulating the crypto during this time. These indicators demonstrate that a significant number of Bitcoin holders are anticipating an upward push and are preparing to be a part of the move.
As the price of Bitcoin remains in the $34k to $35k zone, with the next direction yet to be determined, many investors have also turned to altcoins. This has led to substantial growth in altcoins like Solana, Avalanche, and Polkadot over the past two weeks.