After months of wailing and screaming that started in May, the crypto winter appears to be coming to an end as the market experienced a big bullish season in October. As soon as Bitcoin burst through the $20K fundamental barrier mark, it reached its monthly highs. As the digital asset added close to $30 billion to its market cap and saw an 8% boost in value in “Uptober,” BTC is attempting to reclaim its former glory.
The fact that Bitcoin may once more create a bottom in the price chart ahead of the impending Federal Reserve FOMC meeting, slated for tomorrow, could spell trouble for the cryptocurrency’s bears.
A Parallel In Bitcoin’s Price Pattern
Numerous well-known cryptocurrency specialists from all over the world have offered their predictions on how Bitcoin’s price will go in the future based on its past trend.
An extended downward trend for Bitcoin has recently been hinted at by on-chain data supplier and research firm Glassnode, who recently revealed its weekly on-chain data for Bitcoin Org.
Specific indicators show the in-depth comparison of BTC’s current bottom movement with its past cycles, according to Glassnode’s weekly report. Realized Price and Mayer Multiple, which determine the average intake per coin and the ratio of the coin’s current price to its 200-day SMA, respectively, were used to confirm this bearish analysis (simple moving average). If the spot price trades below the estimated Realized Price, which denotes an overall bearish trend of the particular coin, the Realized Price aids in recognizing the unrealized loss of the entire market.
The overbought and oversold market circumstances are shown by the Mayer Multiple. The analyst pointed out that at its prior cycle lows, Bitcoin kept a Mayer Multiple value below 0.6.