Research Report Explains Why The Crypto Market Might Be About To Reverse

The bottom may not have been reached, but a report from Arcane Research outlines how the crypto market could perform in the short term , medium and long term.

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As November begins, analysts are busy dissecting the major market moves that occurred in October. While Bitcoin (BTC) remained relatively unchanged growing just 5.89% in October, Arcane Research senior analyst Vetle Lunde charted the direction the market could take in the coming months.

"Uptober," a reference to Bitcoin's historic October bullish performance, was a common theme in many Crypto Twitter threads and, according to Lunde, this performance appears to have happened once in a while. more. Data shows that BTC and exchange tokens outperformed the large cap index through October 26.

Elon Musk's takeover of Twitter helped lift the large-cap index over Bitcoin with a staggering 20% ​​monthly gain. Dogecoin (DOGE) helped consolidate large cap strength by producing a 144% gain in the past seven days.

Weighted performance index for the performance of October 2022. Source: Arcane Research

October Bitcoin spot market was driven by increased volume and lower volatility, while benefiting from a short squeeze that briefly reinvigorated the market. According to Lunde, the last week of October saw the largest short-term liquidation volume in crypto since July 26, 2021.

While this activity helped push Bitcoin up 6%, Ether (ETH) and BNB (BNB) saw more substantial gains at 18% and 19% respectively.

7-Day Average Daily BTC USD Volume with and without Binance. Source: Arcane Research

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