Everyone thinks Halloween is Scary, not realising that the Monthly Close was Scarier
Halloween always occurs on the 31st of October, it is about who can be the scariest and who can say Trick or Treat the loudest. That is in fact best how to describe the monthly close. Trick or Treat, was it a trick that every single month since July, there has been Lower lows and Lower Highs, thus signalling a bearish trend?
Nouvive Research has found the following Bullish Trends for BTC and thus the rest of the market:
- The Monthly close despite behaving in a bearish manner per Price action is bullish on other indicators.
- The Commitment of Traders – those that are institutionalised – have signalled to Nouvive Research that they are moving net long, this is shown by the gradually increasing Open-Interest in Longs and the resultant decrease of shorts in the market on their side. The reader must be aware that 1 institutional contract = 5 BTC.
- The OBV that illustrates overall retail open-interest in the market is at an all time low, the monthly close illustrates that it is starting to pick up.
- Despite there being greater sell side support the lower we go from $6300, there is a decreasing volume in the market, illustrating that once you zoom out, over the next 1-3 Months, there will be a volatile and large move up.
- The RSI Stochastic is illustrating that BTC is heavily oversold, just about to touch the crossover, thus illustrating a bullish momentum upwards.
Nouvive’s Instiutionalised contacts have illustrated that despite institutions still behaving quietly towards the CryptoAsset Market, they are heavily buying in. This of course will not be reflected on the overall market price as they are purchasing BTC in OTC or Other the counter trades. A contact states that they are buying BTC at a rate of 10,000 a day.
Moreover, on the 1W Higher time frame, it can be seen that BTC is heavily oversold with the RSI Stochastic crossing over illustrating a bullish reversal.
All in All, Nouvive ultimately sees that there will be a bullish reversal over the next 4 weeks, especially as there continues to be more and more bullish news on the institutional sides.
Those who are waiting for institutions to run into the market, need to be aware that custodial solutions are still not ready according to our contacts and therefore only once they are ready will the market be ready to reverse.
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