Data from Skew shows Bitcoin’s (BTC) spot volume on LMAX Digital, an exchange that mainly caters to institutions, has overtaken retail-oriented exchanges. This signals that institutional investors could be building up positions as they expect the price to move higher in the future.

Along with spot purchases, institutional investors’ participation in the derivatives market has also increased. Data from Arcane Research shows that a record number of investors are taking delivery of Bitcoin from the Bakkt Bitcoin exchange.

Another metric that can be useful for traders is volatility. Bitcoin options data shows that the implied volatility of at the money options has dropped to a 16-month low. This suggests that traders do not expect a large down move in the near future, hence, they are not willing to pay a greater amount to hedge their positions.

Although data suggests that institutional investors are positioned for an upside move, retail traders should keep a close watch on the price action and take large bets only after a trending move starts.

Let’s study the charts of the top-5 cryptocurrencies that could start a trending move next week.

BTC/USD

Bitcoin (BTC) has been holding above the 20-day exponential moving average ($11,137) for the past few days. The buyers purchased the dip to the $11,165 support on Oct. 20, which suggests accumulation at lower levels.

BTC/USD daily chart. Source: TradingView

If the bulls can push the price above the downtrend line, the BTC/USD pair could retest the $11,719 resistance. A breakout of this level may resume the up-move with the first target at $12,000 and then $12,460.

Both the short-term and the long-term moving averages are sloping up and the relative strength index is above 61. This suggests that the bulls are in control.

This positive view will be invalidated if the pair turns down from the downtrend line and plummets below the 20-day EMA. Such a move could pull the price down to the next support at $10,500.

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart has formed a bearish descending triangle pattern that will complete on a breakdown and close (UTC time) below $11,165. This bearish setup has a pattern target of $10,611.

However, if the bulls can propel the price above the downtrend line, the bearish pattern will be invalidated. Such a move could attract short covering by the bears, resulting in a rally to $12,000.

The gradually upsloping 20-EMA and the RSI in the positive territory suggests a minor advantage to the bulls.