Are Bitcoin (BTC) Investors Preparing for $30k Price Rally? 

Key Bitcoin Price Insights –October 19, 2023:

• Bitcoin (BTC) price prodded above $28,500 on Thursday, making it the longest consecutive days it has traded above $28,000 since June. 
• This week, Bitcoin investors have moved another 37,000 BTC into long-term storage, suggesting as they prepare for a prolonged price rally. 
• Technical indicators raise multiple green signals that could overshadow the overbought RSI status.

Bitcoin (BTC) price prodded above $28,500 on Thursday, October 19, 2023, making it the longest consecutive day it has traded above $28,000 since June. 

Green signals from on-chain indicators reveal that BTC traders have started preparing for a prolonged price rally that could reach $30,000. 

Investors Have Moved BTC Worth $1.1 Billion  into Long-term Storage This Week

Cointelegraph’s unfortunate false news report on Monday triggered massive liquidations which threatened to send crypto markets into a bearish tailspin. Bitcoin price withstood the sell pressure and massive liquidations as the bulls defended the $28,100 support level successfully.

However, on-chain data reveals that Bitcoin investors shook off the bearish fears and they are now preparing for a prolonged price rally. Indicatively, investors have moved over 37,000 BTC from crypto day-trading platforms into long-term storage this week. 

The chart above illustrates that 2.056 million BTC sat in exchange-hosted wallets as of October 13. You can think of BTC reserves in exchange-hosted wallet as “Checking accounts”, where investors hold funds that they are looking to spend or trade on short notice. 

Now, as of October 19, the Bitcoin deposits in exchange wallets has rapidly dropped to just 2.019 million BTC. This means that they have reduced their checking account balances by 37,000 BTC (~$1.1 billion) between October 13 and October 19. 

By removing $1.1 billion liquidity from the volume of BTC readily available to be traded exchanges, BTC holders have effectively create an artificial scarcity. Hence, any significant uptick in demand could propel Bitcoin into an accelerated price rally. 

Bitcoin Price Forecast: $28,700 is the Target to Beat

Bitcoin (BTC) is currently trading at $28,500. Multiple attempts at the $28,700 level in the last fe days have weakened the resistance marginally.

Although, the daily time frame technical analysis using the Relative Strength Index (65) shows that Bitcoin is gradually approaching the overbought zone, but if the outflows from crypto exchange wallets intensify, it will likely add steam to the bullish momentum.

The Parabolic Stop and Reverse indicator also confirms this narrative. 

The Parabolic SAR (Stop and Reverse) is a technical indicator used to identify potential reversal points in a market trend. It appears as dots either above or below the price chart, indicating the direction of a trend. When the Parabolic SAR dots are below the price, it suggests a bullish trend, while dots above the price indicate a bearish trend.

As of October 19, with BTC trading at $28,660 and he SAR dots are pointing toward $26,750.  This alignment typically indicates an overwhelming bullish trend.

Hence, a decisive breakout above $28,920 could trigger a rally toward the next significant resistance at $30,200. 

But on the downside, a reversal below the $26,750 Parabolic SAR, could effectively invalidate the bullish narrative.  R