Bitcoin’s Halloween Dip Looks Like A Setup-Not An Accident

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So, Bitcoin’s price decided to have a little Halloween scare, plummeting to $106,200 just before the spooks and scares of October 31st. Classic move, right? It then pulled a classic “hold my beer” moment and bounced right back, surging nearly 4% to $108,700. Trick or treat? More like a market trick that’s just too good to be true.

This wasn’t just your average Halloween volatility-no, no. This dip followed by a sharp surge has left traders scratching their heads. Was it just random market chaos, or was it a well-calculated move to reset everyone’s expectations and prepare for a bullish reversal? The charts are now whispering that this little scare might have a much bigger purpose. A setup, if you will. 🎃

The Dip May Have Reset Bitcoin’s Near-Term Market Structure

After the plunge, Bitcoin’s Relative Strength Index (RSI)-that trusty little metric that tells us if buying is stronger than selling-decided to hang out at a comfy level even though the price kept slipping lower. A bullish divergence was born. This is like the market version of a plot twist, where the sellers are losing their grip and buyers are stepping up to the plate. 🏅

The RSI’s dramatic comeback just so happened to coincide with an almost complete inverse head-and-shoulders pattern (how convenient!). The recent dip helped finish off the right shoulder of this pattern. Now, all Bitcoin needs is a little neck-line breakout around $116,400, and we could be seeing a surge like never before. You know, the kind of surge that makes you feel like you’re watching a sports movie montage. 💪

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Supporting this little theory is the Net Unrealized Profit/Loss (NUPL) metric from Glassnode. Basically, it shows how many investors are sitting on profits or losses. And guess what? It’s dropped to 0.483, its lowest in six months. Translation: weak traders are bailing out while the seasoned pros hold tight. No one’s selling, so the price isn’t going to plummet-unless something dramatic happens. 🤑

The last time NUPL hit these depths on October 17, Bitcoin had a glorious 7.6% rebound, going from $106,498 to $114,583. This dip might’ve flushed out the short-term thrill-seekers, setting the stage for the next big rally. Cue the dramatic music! 🎬

$111,000 Could Decide If The Rebound Holds

If this little dip-surge dance is the real deal, then the next big moment of truth lies around $111,000-$111,400.

According to the Cost-Basis Heatmap, which is just a fancy term for where all the coins were last bought, there’s a massive $18.82 billion worth of Bitcoin chilling in this price range. This is where the party’s at, and it’s where the real resistance begins. If Bitcoin can break through this zone, it’ll be like finding the secret level in a video game. 🎮

If it breaks above, the price will keep climbing. If not? Well, Bitcoin will have to keep trying. Either way, this zone is the Wall of China for now. Watch closely! 🧱

Breakout or Fakeout? Key Bitcoin Price Levels That Will Confirm the Move

If Bitcoin can close above $116,400, this whole reversal pattern completes, and we’re off to the races with a 12.2% target towards $130,800. That would set a new all-time high for the King of Crypto. 👑

The next checkpoint? Around $125,900. It’s like the next big boss in the game. Short-term profits might be taken there, but if Bitcoin falls below $106,200, the bullish setup will go poof-and we’ll be back to square one, praying for a little more stability. 🤷‍♀️

So, will this be a breakout or just a good ol’ fashioned fakeout? Stay tuned. 🍿

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2025-10-31 09:18