The price of Bitcoin (BTC) has increased by 6% over the past 30 days. However, the current strength of the trend, as indicated by the ADX, is showing signs of weakening. Additionally, recent net BTC flows into exchanges suggest that holders have become cautious.
BTC needs to clear the $68,506 resistance to reach a new all-time high, but failure to hold key supports could lead to a pullback.
The current BTC trend is not as strong as a few days ago
ADX for Bitcoin (BTC) is currently at 33.55, indicating moderate trend strength. The Average Directional Index (ADX) measures the strength of a price trend, whether it is moving up or down.
A reading above 20 indicates that the trend is gaining momentum, while readings above 50 indicate a very strong trend. ADX BTC at 33.55 means the trend is still there, but not too strong.
BTC is currently in an uptrend, although the current trend is much weaker than when ADX recently rose above 50. This decline in trend strength signals that the momentum driving BTC’s rise has weakened a bit.
A weakening trend means there is less confidence in the continuation of the upward move, increasing the chances that BTC could consolidate or experience a pullback rather than continue its sharp rise.
BTC Netflow demonstrates an interesting scenario
Between October 17 and October 19, net transfers of BTC to exchanges totaled approximately 12,000 BTC, indicating significant net inflows. Typically, when users withdraw assets from exchanges, it is considered a bullish signal as it suggests they are not planning to sell.
Conversely, rising net inflows into exchanges could mean that holders are preparing to sell their BTC, which could lead to increased selling pressure.
After three days of negative net flows (i.e. more BTC leaving exchanges than entering), the trend briefly turned positive and fluctuated over the last two days. Although recent net flows have turned negative again, their volume is much lower compared to the sharp increase observed between October 17 and October 19.
The change suggests bondholders may not be as confident as before and sentiment may shift toward more caution, limiting the likelihood of strong bullish momentum in the near term.
BTC Price Prediction: Will it hit a new all-time high soon?
The BTC price chart shows that the short-term EMA lines are still above the long-term ones, which is a bullish signal. However, the gap between these EMAs has narrowed compared to a few days ago, indicating that the bullish momentum is weakening.
This could indicate that the uptrend may be losing steam and the market is in a more cautious phase.
If BTC can break through the resistance level at $68,506, it has the potential to rise further and reach $70,036, marking a new all-time high.
On the other hand, if the current trend changes, BTC price could retest the support level at $62,648. If this level does not hold, BTC could fall further, with the next major support being around $57,830.
