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These Indicators Signal About Bitcoin Closing October in Green Zone: Details

Mon, 10/10/2022 - 15:56
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Gamza Khanzadaev
Market bets on Bitcoin growth in near term, here's why there's a chance
These Indicators Signal About Bitcoin Closing October in Green Zone: Details
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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There are more and more chances for Bitcoin to close the month in the green zone as October progresses. In addition to those factors that U.Today reported earlier, there are two additional indicators with a rather positive nature.

Funds flows report indicates positivity

The first positive signal can be seen in the results of the CoinShares' digital asset funds flows report. From this weekly research, it was learned that $14.7 million were withdrawn last week from Short Bitcoin products, with a concurrent inflow of $11.7 million into products focused on growing or holding the BTC price. This type of fund flows may signal some dissipation of bearish sentiment and the presence of positivity among market participants.

Mining difficulty sets all-time high

Another factor is the increasing difficulty of BTC mining by 13.55%, setting another historically high level. At the same time, each increase in difficulty now also increases the divergence between the BTC rate and hashrate, which traditionally had a positive correlation. If history repeats itself, the hashrate recovery could once again herald a rise in the Bitcoin price.

Bitcoin (BTC) price action

Late last night, there was a break above the $19,500 level, but failing to advance further, the Bitcoin price fell below $19,300. At this point, it was just a false breakout.

Source: TradingView

At the same time, the stock market, represented by the S&P 500 Index, also began a pullback. In case of the possible continuation of growth, the target is $3,700-$3,800. If resistance is reached, Bitcoin has the chance to grow much more in its percentage ratio.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.