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Recent BTC Price Breakout Open Up Gates for Bitcoin At $31,000, Details

source-logo  coingape.com 02 October 2023 08:38, UTC

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.

Courtesy: CryptoQuant

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