Bitcoin (BTC) abruptly hit one-week highs on Nov. 2 after days of sideways action ended in a brief but strong breakout.
Upside action returns to BTC/USD
Data from Cointelegraph Markets Pro and TradingView followed sudden volatility on BTC/USD as it gained over $1,500 in minutes.
At the time of writing, $63,400 formed a focus amid the pair’s highest levels since Oct. 25.
#Bitcoin ready to break out? pic.twitter.com/EHQnwyke7D
— Michaël van de Poppe (@CryptoMichNL) November 2, 2021
For popular analyst Filbfilb and others, the move was anticipated, with chart signals flashing volatility on Monday.
“Another bit of a nothing day for bitcoin.. still struggling around the MR line… next touch on resistance will be a 4th touch of the downtrend so a retest and breakout fits with what I’m looking for,” he summarized to Telegram channel subscribers alongside an annotated chart.
“We haven’t lost the MR line & found resistance there, but I’m expecting the next move to happen in the next 48 hours.”
Others highlighted Bitcoin’s relative strength index (RSI) now being above 70 — a classic “prelude” to an incoming extended rally.
Small sample size but historically a 100% accurate prelude to a multi month rally pic.twitter.com/McA39f9Fpv
— //Bitcoin ack (@BTC_JackSparrow) November 2, 2021
As Cointelegraph reported, RSI levels are being keenly watched to determine both a breakout and an ideal market exit opportunity.
Funds squeeze the Bitcoin supply further
Bullish tendencies have been stacking up across the Bitcoin ecosystem as November starts.
Related: ‘Uptober’ closes at record high in best month of 2021 — 5 things to watch in Bitcoin this week
The latest data shows that in addition to on-chain metrics in the green, investment habits are echoing February — the run-up to previous all-time highs of $64,900.
Specifically, funds purchased more BTC in October than miners produced — a first since the second month of the year.
Miners themselves have become accumulators in 2021, with only May’s China debacle causing a rift in the trend.
