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Bitcoin (BTC) crossed the $65,000 mark, renewing traders’ optimism about a “higher” rally that could extend the digital asset’s bullish momentum.
Is Bitcoin’s ‘Uptober’ Rise Finally Here?
In the early hours of October 15, Bitcoin briefly topped $66,000 before falling to $65,964 at the time of writing. Over the past 24 hours, Bitcoin has risen by 1.4%.
According to A a report Via cryptocurrency exchange Bitfinex, Bitcoin’s decisive move past the crucial resistance level of $63,000, coupled with encouraging on-chain metrics, indicates further potential upward movement.
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The report notes that Bitcoin’s realized price for Unspent Transaction Output (UTXO) age ranges is a “pivotal on-chain metric for measuring Bitcoin market dynamics.”
For starters, Bitcoin’s UTXO age ranges indicate the value at which different blocks of BTC – based on how long they were held – were last transferred. Essentially, it helps track the average purchase price across different age groups of Bitcoin holders, indicating market sentiment and profitability of specific groups.
It is worth noting that the short-term (3-6 months) and medium-term (6-12 months) average realized prices of equity holders have historically been key support or resistance levels. The short-term holder price of the stock is about $63,000, while the medium-term holder price is $55,000.
When Bitcoin trades at a price below the average buy price for these groups, it often indicates a downtrend. Conversely, a move above these levels could indicate upward momentum.
As BTC clears the $63,000 resistance level, there could be more gains on the horizon. However, failure to close above this level could have resulted in a potential drop towards $55,000.
The market is showing a strong appetite for digital assets
The report highlights BTC’s weak price action on October 10, when it fell to $58,943 due to a lack of strong buying in the spot market. According to the report, the majority of sales originated on Coinbase.
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The report refers to the Coinbase Premium Gap Index (CPGI) – a metric that shows the difference between the BTC-USD pair on Coinbase versus other major centralized exchanges.
The Consumer Price Index (CPGI) fell by 100 points as the price of BTC fell below $59,000. The report notes that over the past year, any time the Consumer Price Index (CPGI) fell below 50 points, the BTC price saw a subsequent rebound. The report adds:
Bitcoin has traded within a wide range over the past eight months. In the event of a bear market, selling usually occurs when the price of Coinbase Premium turns negative. However, no such selling has been observed, suggesting that despite the volatility, the market remains relatively stable without widespread fear-driven divestment. This resilience can indicate fundamental strength or balanced market sentiment that may guide future price movements.
This analysis is in line with a separate report by cryptocurrency firm QCP Capital, which male The shallow sell-off in the cryptocurrency market in the wake of geopolitical tensions between Iran and Israel indicates continued demand for high-risk assets.
In related news, Bitcoin bulls will be relieved to learn that defunct cryptocurrency exchange Mt.Gox has… delay Payment is due until October 2025, which may ease the pressure on an immediate sale.
However, some analysts warning That BTC may face price capitulation due to tightening on-chain liquidity. At the time of writing, Bitcoin is trading at $65,964, up 1.4% over the past 24 hours.
Featured image from Unsplash, charts from CryptoQuant and Tradingview.com