Can Bitcoin maintain its bull rally in November?

• BTC was up by more than 20% over the last 30 days.
• Most metrics looked bullish, but market indicators like RSI supported the bears.

Bitcoin [BTC] has enjoyed a comfortable rally over the last few weeks, thanks to bullish market conditions. Over the first month of Q4 2023, BTC’s price surged by more than 22%. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

The uptrend has given investors hope that BTC will reach new highs ahead of its upcoming halving. While this happened, it must also be taken into account how BTC’s metrics reacted as we enter November.

A look at Bitcoin’s performance in October 

Over the last month, the king of cryptos has managed to push its price up considerably as its value spiked by more than 23%. In the last seven days, the coin’s price went up by more than 1%.

According to CoinMarketCap, at the time of writing, it was trading at $34,439.75 with a market capitalization of over $672 billion. A look at Santiment’s chart revealed that BTC’s trading volume surged substantially during its price uptick.

Thanks to that, the coin’s 4-week price volatility has also gained upward momentum in the recent past. Bitcoin’s popularity over the last month also remained high, as evident from the spike in its social dominance.

BTC’s weighted sentiment also went up quite a few times in October, meaning that positive sentiment around BTC was dominant.

Source: Santiment

Santiment’s data further revealed that BTC remained in demand among whales as its whale transaction count remained up throughout the last month.

Not only whales, but derivatives investors were also buying BTC, which was evident from the fact that its Binance funding rate was green.

Apart from these, BTC’s supply outside of exchanges was almost similar to its supply on exchanges, meaning that buying pressure was high on the coin, which is generally perceived as a positive signal.

Source: Santiment

A quick check on BTC’s mining sector 

The mining industry has also flourished amidst the price hike. As per Coinwarz, BTC’s hashrate grew over the last few months, suggesting that the mining industry was active.

At the time of writing, BTC’s hashrate stood at 466.04 EH/s. The hike in the blockchain’s hashrate also caused a surge in its difficulty, as its mining difficulty reached 62.46 T.

Apart from this, other metrics suggested that they were immensely confident in the token as a whole. This was evident from the fact that BTC miners’ balances surged substantially last month.

Thanks to the recent price uptrend, BTC’s miners’ revenue also remained pretty stable throughout the last month, as per Glassnode.

Source: Glassnode

Will Bitcoin air a similar show in November?

Bitcoin’s October 2023 price action was bullish and provided much-needed hope to investors as we experienced the longest bearish market ever since the inception of crypto.

However, will BTC’s October trend continue in November? A closer look at the blockchain’s state gave a better understanding of what to expect from it in the second month of the last quarter of 2023.

Moustache, a popular crypto analyst, recently posted a tweet on X (formerly known as Twitter) highlighting an interesting development about the king of cryptos.

As per the tweet, BTC’s True Strength Index (TSI) displayed a bullish pattern on BTC’s daily chart. For starters, TSI is a technical momentum oscillator used to identify trends and reversals.

Every time the TSI has crossed bullishly, we have seen a parabolic curve afterwards. Therefore, the probability of BTC continuing its bull rally over the next month seems likely to happen.

Though the market indicators looked bullish on the coin, a look at its daily chart told a different story. BTC’s price has already touched and gone below the upper limit of the Bollinger bands, which looked bearish.

Its Relative Strength Index (RSI) was in an overbought zone, which can put more selling pressure on the coin.

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After a comfortable uptick, BTC’s Chaikin Money Flow (CMF) registered a slight downtrend. On top of that, Bitcoin’s MACD displayed the chances of a bearish crossover in the days to follow, increasing the chances of a price downtrend in the days to come.

Therefore, considering all the aforementioned metrics, it will be interesting to see which direction BTC’s price moves in the coming weeks.

Source: TradingView