Crypto markets have been waiting for a volatility cascade after a short pump excited the markets, reaping decent short-term ROIs for traders.
With crypto traders and investors betting on a bullish Nov, as FOMC and Fed decisions loom, Bitcoin and top crypto assets could be preparing for some extreme trades.
Bitcoin price has been trading in the $20,400 range after it broke above the $20,000 psychological resistance around Oct. 17. After a quick pump, prices have been more or less struggling to cross above the $21,085 local top made on Oct 29.
Nonetheless, with a new month beginning and the year-end approaching, analysts are speculating whether a crypto market bottom is in.
Up and Away for Crypto Markets?
The analyst pointed out on the BTC/USD four-hour chart that Bitcoin price had made a double top pattern and could see a short term price pullback to the $20,000 level. Afterward, the price could rally to $22,400 mark.
Analyst Will Clemente noted that Bitcoin’s 90-day realized volatility was at record low levels. He further added that, “8/9 times volatility has gotten this low, price has seen an impulse to the upside.”
BTC price action noting an upside in the short-term can act in favor of the crypto market by triggering other digital assets to regain momentum. That coupled with FOMC news might be the catalyst that the crypto market needs for volatility.
Still Some Downside Action to Come, say Others
While some analysts were of the opinion that a crypto bottom had been achieved, others believe that BTC and the crypto market cap could take another tumble.
He said that BTC/USD could make a run to $21,000 and make a triple top, or an ending diagonal on a two-hour chart, to trap longs.
CryptoCapo’s bearish confirmation lay at the break of the wedge and the final confirmation at the support/resistance flip of the $20,000 price level. Additionally, the analyst has set his main target after bearish confirmation at $14,000.
Furthermore, analyst On-Chain College said that the Bitcoin Mayer Multiple was over the 0.8 level for the first time since early May 2022. While many could consider that this means it is the start of a bull run, it isn’t true.
The analyst says that price can decline further, and the Mayer Multiple can drop.
As for whether the market has in fact reached a bottom – only time will tell.
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