It seems to be a great start to Q4 2023 and the early signs of Uptober are already here! The Bitcoin (BTC) price has shot by more than 3.57% in the past few hours giving a crucial breakout above $28,000.
As per the technical chart, this opens up the gates for the BTC price to surge all the way to $31,000. It means that investors can brace for another 10% price rally from the current levels.
#Bitcoin | The last time we saw a breakout like the current one, $BTC rallied all the way up to $31,000! pic.twitter.com/9MbBv0ubQ4
— Ali (@ali_charts) October 2, 2023
As of press time, BTC is trading at $28,125 with a market cap of $548 billion. With this breakout, Bitcoin has also surged past its 200-day moving average which is a bullish sign.
Should buyers effectively breach the converging 200-day and 100-day moving averages situated at $28,000 Bitcoin’s price could see an additional surge. The next formidable resistance that investors face is at $30,000. But some market analysts also think that it would not be wise to go chasing the green candle formation for now.
#Bitcion – Supertrend signals flipping bullish on the daily. We could very well re-test this breakout so don't go chasing this green candle. pic.twitter.com/kaAlBfVnfP
— IncomeSharks (@IncomeSharks) October 2, 2023
Bitcoin On-Chain Indicators Show Strength
The 12-18 Months UTXO Realized Price for Bitcoin stands at $26,950, signifying that investors who acquired Bitcoin within this timeframe have essentially reached the breakeven point, aligning with the average acquisition price. However, the 6-12 Months UTXO Realized Price is lower than the current market price, indicating profitability for this specific group.
A deeper dive into the Exchange Inflow UTXO Age Bands data provides valuable insights into investor sentiment. Despite enduring prolonged periods of unrealized losses, the 12-18-month UTXO group showcases resilience by holding onto their investments instead of rushing to sell.
This demonstrates a notably high level of confidence in Bitcoin’s long-term potential. Conversely, the 6-12-month UTXO cohort, currently enjoying profits, is actively engaged in selling on exchanges.
The differing behaviors of these two investor groups underscore the varying levels of confidence in Bitcoin’s future trajectory. Individuals who have held Bitcoin for 12-18 months seem to possess a strong belief in its long-term potential, as they choose not to sell even after reaching the point of breaking even.
The minimal inflow of Bitcoin from the 12-18-month UTXO cohort onto exchanges indicates reduced selling pressure, implying that their realized price may not serve as a substantial resistance level for Bitcoin’s price