Bitcoin [BTC/USD] Price Analysis: Cryptocurrency Surges as the Bull Creates New Immediate Support

Bitcoin’s performance on the charts has always dictated changes in the cryptocurrency industry with major tokens following it as an example. This pattern was put on display recently when Bitcoin was joined by other cryptocurrencies on a rising price wave.

The second week of October has given a much-required boost to the world’s largest cryptocurrency as the market cap climbed over the $200 billion mark. This increase comes on the back of repeated claims that the cryptocurrency market would bleed red as the year comes to a close.

Bitcoin’s latest surge came after an extended period where its value did not move above $10,500. Several traders were waiting for this exact moment as they had asked HODLers to maintain their streak while at the same time urging new traders to ‘buy the dip’.  At press time, Bitcoin was trading for $11,260 with a total market cap of $208.5 billion. A 6 percent weekly gain had also elevated the cryptocurrency’s daily trading volume to $22.1 billion.

BTC’s technical analysis painted a positive picture as almost all the major indicators sided with the bull. These indicators included the Parabolic SAR, the Relative Strength Index, and the Chaikin Money Flow indicator. The PSAR markers were below the price candles, a sign that Bitcoin was in for a short bullish term. This is the longest purple patch since Bitcoin enjoyed a stellar run back in July.

According to the Relative Strength Index, the Bitcoin ecosystem was cashing in on the latest price hike. The RSI was near the overbought zone for the first time since September and coincided with more people buying BTC. Bitcoin’s buying pressure also surpassed its selling pressure due to the bull run.

Another indicator that signaled green for Bitcoin was CMF, which hit record highs recently. The CMF was at its highest point since August, staying well above the stipulated zero line. Data provided by the CMF is important to track the amount of capital that was coming into the Bitcoin market as well as the amount leaving it.