Bitcoin (BTC) has surged past the $65,000 mark, renewing traders’ optimism for an “Uptober” rally that could extend the digital asset’s bullish momentum.
Is The Bitcoin “Uptober” Rally Finally Here?
In the early hours of October 15, Bitcoin briefly crossed $66,000 before retracing to $65,964 at the time of writing. Over the past 24 hours, BTC has gained 1.4%.
According to a report by crypto exchange Bitfinex, Bitcoin’s decisive move past the crucial $63,000 resistance level, combined with encouraging on-chain metrics, points toward further potential upside move.
Related Reading
The report mentions that Bitcoin’s realized price of unspent transactions output (UTXO) age bands are a “pivotal on-chain metric for gauging Bitcoin’s market dynamics.”
For the uninitiated, Bitcoin’s UTXO age bands refer to the value at which different groups of BTC – based on their holding duration – were last moved. Essentially, it helps track the average purchase price across various age groups of BTC holders, indicating market sentiment and the profitability of specific cohorts.
Notably, the average realized prices for short-term (3-6 months) and mid-term (6-12 months) holders have historically been key support or resistance levels. The short-term holder price is around $63,000, while the mid-term holder price is $55,000.
When Bitcoin trades below the average purchase price of these groups, it often signals a bearish trend. Conversely, a move above these levels can indicate bullish momentum.
Since BTC has surpassed the $63,000 resistance, further gains could be in sight. However, a failure to close above this level could have triggered a potential decline toward $55,000.
Market Displays Strong Appetite For Digital Assets
The report highlights BTC’s weak price action on October 10, when it fell to $58,943 due to lack of aggressive buying in the spot market. Per the report, the majority of the selling originated on Coinbase.
Related Reading
The report mentions the Coinbase Premium Gap Indicator (CPGI) – a metric that shows the difference between the BTC-dollar pair on Coinbase versus other major centralized exchanges.
The CPGI decreased by 100 points as BTC’s price declined below $59,000. The report notes that during the past year, anytime the CPGI fell below 50 points, BTC price has witnessed a subsequent recovery….
Click Here to Read the Full Original Article at NewsBTC…
