Specifically, two weeks before, Bitcoin recorded “the strongest weekly volume in more than a year, fueled by the collapse of FTX,” according to an analysis by the experts from crypto analytics firm TradingShot, published on November 22. As the analysts explained, such dramatic spikes in volume “tend to be associated with trend reversals on BTC.” Furthermore, they specified that this means the price could significantly move in either direction:
Previous patterns
In terms of forming the bull cycle top, a similar volume pattern was noted between January 11, 2021, and May 17, 2021. On the other hand, a bottom formation of the bear cycle coincided with a volume rise in the period from November 19, 2018, and May 13, 2019. Before that, a bull cycle top was formed between December 18, 2017, and February 5, 2018, with a large volume growth that was preceded by the one that occurred during a bear cycle bottom formation between January 12, 2015, and November 2, 2015. As the TradingShot team observed, the last pattern had the most similarities with the one occurring between June 13, 2022, and November 7, 2022, involving a lower highs (bottom) trendline, leading them to hypothesize on the possible bullish trend reversal:
Bitcoin price analysis
Considering the current chart patterns that Bitcoin is forming, a bullish future might indeed be in the cards. At press time, the flagship decentralized finance (DeFi) token was moving toward the key resistance level of $16,600 that crypto trading expert Michaël van de Poppe identified as leading toward further strengthening. Specifically, Bitcoin is changing hands at the price of $16,536, representing a gain of 5.20% over the previous 24 hours, although it is still a 1.08% decline across the week and a 14.86% loss on the month, according to the data retrieved on November 23. On top of the day’s improvement, the largest cryptocurrency by market capitalization ($317.74 billion) has historically demonstrated a final bullish push during the approaching holiday of Thanksgiving, although this year’s trend could be cut short, based on various technical analysis (TA) indicators. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
