Bitcoin (BTC) is currently trading sideways despite financial markets in the United States continuing to exhibit a high degree of volatility while markets in China are experiencing severe declines.
Given that Bitcoin has been trading sideways between $18,500 and $21,400 range over the last month, prominent crypto trading expert, Michaël van de Poppe, identified the $19,500-$19,600 mark as “crucial resistance” on October 25. van de Poppe noted that if Bitcoin can consolidate support at this level it could spark a possible short squeeze.
“If we break to the upside we can definitely say that once we do crack $19,500 and consolidate here we are probably going to get a squeeze happening always towards $20,700 and most likely $22,400 as we are taking out all the stops above these highs.”
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In addition, the trader added that technically speaking, Bitcoin could still go as low as $19,000 and continue moving to the upside as it has been bouncing up with support from this level.
Bitcoin’s volatility less than S&P 500 and Nasdaq
Notably, Bitcoin rolling volatility over 20 days has fallen below the S&P 500 and the Nasdaq equity indices for the first time since 2018, as it has shown increasing resistance to rising yields and a stronger US Dollar over the past few weeks.
Despite the price of Bitcoin stabilizing, van de Poppe stresses that “the volatility will start to increase heavily.”
Finbold also reported on October 25 that long-term Bitcoin holders are continuing their ‘hodling’ behavior and currently own over 75% of all Bitcoin in existence, the highest percentage seen in seven years – since October 2015.
According to crypto analyst martuun, the behavior by long-term holders indicates the ‘strong support’ Bitcoin has.
“They have a lower spending behavior statistically and thereby these are the hodlers from the last resort, providing Bitcoin strong support.”
Meanwhile Bitcoin has managed to outperform equities and most major fiat currencies in the third quarter of 2022, apart from the U.S. Dollar Index.
Currently, the flagship cryptocurrency is changing hands at $19,280, which represents a decrease of 0.44% on the day, as well as 1.22% across the previous seven days, although the monthly chart is showing an increase of 1.25%, according to CoinMarketCap data.
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