After an explosive performance in the first week of October, Bitcoin price action was mostly smooth throughout the month. In fact, the top cryptocurrency witnessed a moment of weakness during “Uptober,” a historically bullish month.
Due to significant downward pressure in recent weeks, Bitcoin price looks set to end the month in the red. However, recent assessments suggest that the market leader may be gearing up for the next major price move next week.
Why BTC Could Make a Big Move Next Week
In a recent YouTube video, cryptocurrency analyst Maartunn shared an interesting hypothesis about Bitcoin price, saying Bitcoin could make a big move next week. This assessment is based on the Bitcoin Crash Price Trace, which monitors BTC’s behavior after major price drops.
According to Maartunn’s analysis, the price of Bitcoin tends to plummet for about two to four weeks and then enter a period of consolidation or sideways movement before making the next major move. This has been the case for the flagship cryptocurrency since it fell more than 16% on October 10.
Maartunn noted that the market leader is currently 14 days into this consolidation phase, meaning the next move could come any time from now.
Source: @JA_Maartunn on X
The analyst further provided clues in the data, highlighting that market volatility for the top cryptocurrency is decreasing. Maartunn believes this decline in volatility is a sign that investors are sitting on the sidelines of the next significant price move.
As of this writing, Bitcoin’s value is around $111,690, up just 0.6% over the past 24 hours.
Level to watch for next move
Maartunn identified $112,500 as an important level to watch in case Bitcoin price makes its next big move. This price level is the realized price for short holders (STH) and often acts as a dynamic support and resistance level.
Typically, when the value of BTC is below this STH realized price, it means that the most responsive set of Bitcoin investors are in the red. These short-term investors are likely to dispose of their assets at breakeven prices when the Bitcoin price returns to cost basis.
Ultimately, this selling will put downward pressure on the Bitcoin price, making the STH realized price (currently $112,500) a significant resistance level.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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