Bitcoin: bull market may be in its final stages

Market Overview

The crypto market capitalization fell by 3.1% to $3.65 trillion during the day. The bulls failed to push the market above the recent highs of $3.95 trillion, and we are seeing the formation of an active short-term downtrend. This will be confirmed if the next local low is at $3.35 trillion. These levels are already below the 200-day average, which will attract the attention of long-term sellers. So, we continue to closely monitor market dynamics near $3.5 trillion, where a meaningful moving average is located.

Bitcoin at $108K has once again fallen to its 200-day moving average. It is pointing upwards and is now 30% higher than the levels seen in March-April, when BTC last dipped below it. The spring scenario of prolonged consolidation around a critical line and a further breakout now looks like a hopeful scenario for bulls. However, there are still risks that the first prerequisites for the next prolonged bear market are now forming. BTC's rebound from its lows is encouraging, but the structure remains fragile. The decline in trading volumes on spot platforms and derivatives markets signals a decline in confidence and demand, according to Glassnode.

The recent sharp correction in the crypto market is not related to manipulation, according to Galaxy Digital CEO Mike Novogratz. According to him, the leading sellers were long-term investors and miners.

Sixty-seven percent of institutional investors are optimistic about Bitcoin's prospects for the next three to six months, according to a Coinbase Institutional survey of 124 respondents. At the same time, 45% of institutional investors believe that the bull market is in its late stages.

Publicly traded companies continue to build up their crypto reserves. Strategy acquired 168 BTC over the past week. BitMine bought 203,826 ETH.

According to Jefferies, in September, the profitability of BTC mining fell by more than 7%, and the daily income per 1 EH/s of hash rate decreased from $56,000 to $52,000. In October, a sharp correction in the asset increased pressure on the economics of its mining.

 The FxPro Analyst Team