Bitcoin price pumps while whales send thousands of tokens to exchanges

Bitcoin price establishes a new monthly high after a 10% rally.
As Bitcoin ascended, 52,713 BTC tokens were sent to exchanges.
The health of the uptrend depends on $19,200 remaining unbreached.

Tony M.FXStreet Contributor

Bitcoin price rallies, but on-chain metrics suggest caution should be applied.

Bitcoin price at the crossroads

Bitcoin price has stunned the market as the bulls have rallied in a skyrocket-like fashion. The ongoing uptrend has raised Bitcoin's market value by 10% this week and has established a new monthly high for October at $20,907.

Traders should apply precautionary measures, however, as on-chain metrics hint that whales may already be satisfied with their gains. According to Santiment’s Exchange Inflow indicator, 52,713 BTC tokens were onboarded onto all exchanges as Bitcoin made new monthly highs. This indicator could suggest that whales are looking to book profits in the near future.

Santiment's Inflow Exchange Indicator

Bitcoin price currently trades at $20,546. A Fibonacci retracement tool surrounding the recent uptrend move shows the consolidation as a 23.6% retracement. An ideal Bitcoin trade setup would be to purchase BTC near $20,300 at the 38.2% Fib level and aim for the $22,000 psychological level.

Considering these factors, the health of the newfound uptrend will depend on the thrust candle low of $19,200 remaining unbreached. If the bears breach this level, an additional decline targeting the $18,700 liquidity zone could occur, resulting in a 9% decrease from the current Bitcoin price.

BTC/USDT 2-Hour Chart

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

Author

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.