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Bitcoin price nearly breaks above $56,000 but retreats to affirm higher support around $55,000 before resuming the uptrend.
A falling Bitcoin supply on exchanges could quickly bolster the price above $60,000 as selling pressure fades.
Bitcoin has kept its October winning streak Intact. Although the bellwether cryptocurrency suffered delays at $51,800, leading to a minor setback, bulls almost immediately regained control, pushing for gains above $55,000 (the critical supply zone marked in red on the daily chart).
Bitcoin Price Stalls Short Of $56,000
The flagship cryptocurrency exploded above the supply zone and closed in on $56,000 before the bullish momentum faded. A minor correction occurred as BTC sought the support of around $55,000.
Bitcoin must stay above the red zone to annihilate the building overhead pressure. Holding within the supply area will also keep the uptrend intact.
Meanwhile, Bitcoin’s daily time frame is still bullish, with the Moving Average Convergence Divergence (MACD) having crossed above the mean line. A buy signal sent toward the end of September has also been sustained, adding credibility to the optimistic outlook.
At the same time, BTC’s move above $55,000 proved that buyers have what it takes to close the gap to $60,000. The consistent bullish action implies that the micro downtrend experienced in August is finally over, and the market could be gripped with the fear of missing out (FOMO), where investor risk appetite expands significantly.
BTC/USD Daily Chart
Bitcoin’s supply on exchanges continues to diminish as the price roars toward $60,000. On-chain data by Santiment highlights that only 2.42 million BTC is available on known exchange wallets compared to a three-month high of 2.55 million.
Bitcoin Supply On Exchanges
As supply on exchanges dwindles, selling pressure goes down. This shows that investors are deciding to hold amid speculation that the price will move higher. Hence, with reduced overhead pressure, Bitcoin gains momentum to rally, as shown in the chart. Therefore, the largest cryptocurrency must be better positioned to make a higher move than correct below $50,000.
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