Bitcoin's Journey to $34,300: Analyzing Recent Developments

Updated

Join us as we analyze Bitcoin's remarkable journey to $34,300. This article breaks down the recent developments that have propelled the cryptocurrency to new heights, offering a comprehensive perspective on the factors driving this impressive price point.

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Hello and welcome to my insights! For a long time, I wanted to share my market insights, but I didn't have the courage to do so. That's why I've decided to create interesting insights that are not common in the market

Recently, I've noticed a high demand for understanding the reasons behind Bitcoin's movements. Many people are asking about the context and background. That's why I'm sharing these insights to help people better comprehend these dynamics

For instance, observe the correlation between news and Bitcoin prices. I wasn't actively following it, but I noticed a pattern. News alternates between positive and negative content, and this content often influences price movements

- **25.9, BTC Price 26303:** FxPro analysts express bearish sentiment on Bitcoin, predicting a drop to $23,000, but CryptoQuant data suggests consolidation until the 2024 halving event.
- **26.9, BTC Price 26218:** Lumerin Hashpower Marketplace on Arbitrum offers innovative Bitcoin mining power trading.
- **29.9, BTC Price 26916:** Valkyrie acquires Ether futures contracts, transforming its Bitcoin futures ETF into a dual-investment vehicle.
- **5.10, BTC Price 27415:** ByteTree upgrades BTC market signal to bull, citing it as a safe haven amid traditional market turmoil.
- **6.10, BTC Price 27945:** BTC briefly surges above $28,000 despite U.S. employment data and bond market concerns.
- **9.10, BTC Price 27598:** Matrixport report highlights Bitcoin's potential over gold, citing advantages and a potential SEC-approved Bitcoin ETF.
- **10.10, BTC Price 27399:** Bitcoin's market dominance nears a 26-month high, as Bitstamp plans crypto services with European banks.
- **10.10, BTC Price 27399:** Fidelity Digital Assets emphasizes Bitcoin as a compelling store of value in the digital landscape.
- **11.10, BTC Price 26876:** Research introduces BitVM for Ethereum-style smart contracts on Bitcoin, but limitations are noted.
- **11.10, BTC Price 26876:** Jim Cramer expresses bearish views on Bitcoin, preferring gold as a safe-haven asset, sparking debate.
- **13.10, BTC Price 26868:** Bitcoin's performance diverges from other cryptos, attributed to potential spot-based ETF approval.
- **16.10, BTC Price 28519:** Bitcoin surges amid hopes for a U.S. Bitcoin ETF approval after a Grayscale ruling.
- **17.10, BTC Price 28410:** Bitcoin rises on positive sentiment and California's crypto licensing bill, with rising interest from BlackRock's CEO.
- **17.10, BTC Price 28410:** "Unbroken Chain" fund aims to raise $5 million for actively trading Bitcoin NFT elements.
- **17.10, BTC Price 28410:** Bitcoin nears a two-month high as firms amend spot Bitcoin ETF filings, fueling bullish sentiment.
- **18.10, BTC Price 28330:** Lightning Labs introduces Taproot Assets protocol, allowing stablecoin issuance on Bitcoin and Lightning networks.
- **19.10, BTC Price 28735:** Tesla's bitcoin holdings remain unchanged, valued at $184 million, as reported in Q3 earnings.
- **20.10, BTC Price 29685:** Google Trends Surges: 19.10, Retail interest peaks in Bitcoin's spot ETFs. "Spot bitcoin ETF" nears 5-year high, while "bitcoin ETF" hits 2-year peak. Anticipation of SEC approval in early 2023 sparks hopes for mainstream adoption. Historically, these peaks coincide with market tops in Bitcoin and Solana
- **20.10, BTC Price 29685:** JPMorgan Boosts Bitcoin: Increased optimism about spot Bitcoin ETF approval lifts BTC. SEC's non-appeal in Grayscale case bolsters ETF chances, expects approval within months. Potential mainstream influx; ETFs cheaper and encourage competition in fees
- ****23.10, BTC Price 31353 for now****: Michael Saylor's 4.7B Bitcoin Bet Back in the Green

This is recent news from the end of September until now that supports the narrative of Bitcoin. Perhaps, I filtered some information to provide a general summary for people who are not up to date with the recent context of Bitcoin.

Currently, Bitcoin is trading at $31,500-31,600 (10.23.2023) as I write this article. I want to provide some interesting insights into what drives Bitcoin's movements and the context behind them, using various tools that I will present visually.

What interests me is to comprehend recent developments and the tools that substantiate facts and data that may not be widely known or seen by most people.

For instance, the first visual example I will present is a tool that I have kept exclusively for my personal use.

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**This tool is showing where whale buy or sell in the Bitcoin market.**

A blue circle signifies low pressure, indicating whale support and the potential for a price floor. Conversely, a red circle indicates high sales pressure from whales, suggesting a possible price peak. As depicted in the image

Each time multiple points cluster around a specific price level, it serves as an indicator of whether whales are inclined to buy or sell.

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**Whales Divergence (Picture Above)**

Notably, in both March 2023 and June 2023, there is a prominent support zone where whales made significant purchases.

The significance of the WHALE Divergence in this area can be attributed to its historical status as the lowest point, as indicated by the Bitcoin Price Temperature, a widely recognized tool used by many to predict market lows.

In this specific area, we observe WHALE activity at an all-time low. This likely signifies a new low for the whales in terms of their Bitcoin holdings. Unfortunately, our data is limited to 2020 and doesn't provide further insights into the Bitcoin market.

Nonetheless, it remains a fascinating observation to witness the DIVERGENCE among the whales as they acquire and defend Bitcoin at this price point.

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**Whales + Bitcoin Price Temperature**

this particular low was identified through a widely-used tool called Bitcoin Price Temperature. People primarily employ this tool to anticipate when Bitcoin is likely to reach its lowest and highest points in the market. It offers valuable insights, potentially revealing why some whales strategically purchase Bitcoin in specific areas.

Contex: The divergence observed here suggests a positive shift in whales' buying behavior. While divergence can be spotted in various specific periods, I'm particularly focused on this one due to the conjunction of two significant factors: the historic "lowest" level of whale activity and the lowest reading on the Bitcoin Temperature indicator. This unique combination of events underscores the importance of this specific period in highlighting changes in whale buying patterns.

We're now transitioning to the next topic.

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**Whales Buyers to Resistance**

You should always consider various possibilities of market conditions. Whales, in the past, bought at the bottom of this price, which has now become a high price. Currently, there is a chance that these individuals want to sell at the price they originally purchased to avoid losses

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**Bitcoin Mentality Investors**

But now, let's delve into another aspect that piques my interest - an analysis of the psychological state of many individuals concerning Bitcoin.

I personally follow a tool that provides insights into how people perceive this market. In this tool, a red background indicates a pessimistic outlook on Bitcoin. When the background is red, it signifies that, in any case, people view Bitcoin negatively in the long term. They believe that Bitcoin is underperforming, causing losses, and triggering a chain of negative emotions, rumors, and pessimistic beliefs, among other factors.

What intrigues me is understanding why, at a time when Bitcoin is on the rise, reaching a price it hasn't seen in a long time, there seems to be a prevailing negative sentiment. This negativity may be temporary, akin to the period in 2016. You can reflect on past events. Naturally, we all hope for a shift in public sentiment towards Bitcoin being viewed more positively. This shift in sentiment could set off a series of events in favor of Bitcoin, potentially driving prices higher over time with the help of herd behavior and momentum

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**Bitcoin's Bottommost Level**

In another chart, we can observe that the most recent low price was around $15,000 (rounded for simplicity), spanning from November 2022 to March 2023. You can easily spot a low price below the green line at the bottom of the graph, just as you can identify a high price above the red line.”

Many areas have shown strong demand, and currently, Bitcoin's price is far above $15,000, more than doubling its value since then. The current state of the market is uncertain - it's challenging to predict whether it will continue to rise or experience a downturn. However, we can identify the key strengths and weaknesses of Bitcoin and strategize to minimize exposure to its weak points while capitalizing on its strengths

If you enjoyed this, please stay tuned for my weekly insights on the state of Bitcoin and the stock market in general

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Whales are exerting pressure on the Bitcoin price at $35,149, between four consecutive days of pressure between $35,000 and $36,000.

BlackMammoth

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