Bitcoin (BTC), after days of sideways trading, abruptly reached one-week highs Nov. 2, following a strong but brief breakout.
BTC/USD 1-minute candle charts (Bitstamp). Source: TradingView
BTC/USD: Upside action comes back
Data from TradingView and Cointelegraph Markets Pro followed sudden volatility in BTC/USD’s rise to $1,500 within minutes.
The pair was at its highest level since Oct. 25, when $63,400 was the focus.
Is #Bitcoin poised to explode? pic.twitter.com/EHQnwyke7D
— Michael van de Poppe (@CryptoMichNL) November 2, 2021
Popular analyst Filbfilb, along with others, anticipated the move, with chart signals flashing volatility Monday.
“Another little bit of a zero day for bitcoin.. still struggling about the MR line… next touching on resistance will be a fourth touch of the downtrend so a retest or breakout fits with what’s important to me,” he stated to Telegram channel subscribers along an annotated chart.
“We haven’t lost the MR line & encountered resistance there, but I expect the next move in the next 48-hours.”
Others pointed out Bitcoin’s relative strength indicator (RSI), now at 70, which is a classic “prelude to” an upcoming extended rally.
Small sample size but historically a 100% accurate prelude to a multi month rally pic.twitter.com/McA39f9Fpv
— //Bitcoin (@BTC_JackSparrow November 2, 2021
Cointelegraph reported that RSI levels are closely monitored to determine if there is a breakout or if there is an exit opportunity.
Bitcoin supply is further squeezed by funds
As November begins, bullish tendencies are increasing across the Bitcoin ecosystem.
Related: “Uptober” closes at a record high in the best month in 2021 — 5 things you should be watching in Bitcoin this week
Recent data show that, in addition to green on-chain metrics, investors are following February — the rise to the previous record of $64,900.
Funds bought more BTC than miners produced in October, which is the first time this has happened since the second month.
Table of Bitcoin fund purchases. Source: Jarvis Labs
In 2021, miners have been accumulators themselves. Only May’s China disaster has caused a rift.
Bitcoin miner reserves chart. Source: CryptoQuant