The past few days have been quite cheap for Bitcoin as the price hit nearly $ 60,000 for the first time since mid-May. over $ 64,000)?

BTC price 4-hour chart | Source: Tradingview

According to data from on-chain analytics firm Glassnode, the percentage of BTC supply held or lost hit a nine-month high.

The “coins held or lost” totaled 7,203,450,731 BTC, reflecting the bullish sentiment over the period. Analyst and trader Michaël van de Poppe comment:

“Bitcoin is very likely to continue its upward momentum towards ATH. Big jump from $ 54,000. Doubt will test the $ 50,000 level again. “

With $ 50,000 in support, he remains bullish and expects an explosive end for Bitcoin this year. In addition, other proponents also share a positive opinion. Spencer Schiff, a former gold enthusiast, has now switched to Bitcoin tweet:

“The Bitcoin price will break the record high. That is inevitable ”.

However, his father Peter Schiff still prefers gold over Bitcoin.

“If investors realize that bad inflation news is good news for gold, the rally has a long way to go. This is bad news for Bitcoin, too. “

The community was quick to respond to such criticism. For example Peter McCormack sarcastically sarcastic “several rallies” accompanied by a falling gold / BTC chart.

Some rally pic.twitter.com/I8K3HkBj3e

– Peter McCormack (@PeterMcCormack) October 13, 2021

Possible cause for concern

Regardless of the strong BTC rally and trading in the green, there are still a number of obstacles that could detract from this upward move. Trader and analyst Rekt Capital emphasized that BTC failed to close the weekly candle above USD 60,000 and this is certainly not the first time.

“BTC has been successful so far test again daily bull flag but still below the major weekly resistance line (red). In fact, every previous week’s close below $ 60,000 has retraced from those highs. “

The source: Twitter

In addition, the on-chain market analysis platform Glassnode has also triggered some warning signals. The growing influx of BTC into the exchanges could be a worrying sign for investors.

“The Exchange Net Position Change Index has been operating in net outflow mode since March 2020. May through July is the main period for net inflows, but this is now completely reversed. The exchanges are seeing a modest outflow of around 20,000 BTC per month. “

The source: Glass knot

At low inflow rates, traders determine whether market participants want to keep coins in their wallets or want to spend them. It is possible for investors to keep coins on the exchange to sell when the price hits the target.

Approval events for Bitcoin Exchange Traded Fund (ETF) and others could change this scenario.

Are Bitcoin Pro Indices Rising To ATH?

Bitcoin finally broke $ 58,000 on October 14th after consolidating between major Fib levels. The price hike was partly due to the growth of key indicators, which saw consistently high on-chain activity from August to October.

According to Glassnode, many indicators are up around 24% since the lowest price of $ 29,000. Bitcoin’s number of active addresses increased by 179,000 per day while the number of active entities increased by 51,000 per day. The adjusted number of BTC units transactions increased by 43,000 per day.

BTC on-chain activity growth | Source: Glassnode

In addition, Bitcoin balances on the exchanges increased over the course of October, with the total balance on the exchanges being around 2.45 million BTC as of October 14, which is roughly the same as in August 2018. Compared to ATH of 3.11 million BTC in March 2020, a total of 657,000 BTC has been withdrawn, which is 21% of the ATH balance.

Additionally, the majority of UTXOs are back to profitability as well, hitting 95.7% of total UTXOs, an increase of about 11.3% since the low in September one time.

UTXO profit in percent | The source: Glass knot

The calm before the storm?

The data shows that long-term HODLers have driven the price above $ 42,000 and eventually above $ 50,000 in the past few weeks. But one ingredient that seems to be missing from this rally is FOMO from new retail investors.

While the consolidation of the past few days may seem like the calm before the storm, a rally in BTC of nearly 40% in October will require the right volume of demand to send it into the wild. In the event of a small correction, this is a good time to buy dips. This could also trigger the FOMO sentiment ahead of ATH, fueling a stronger step forward.

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Minh Anh

According to AZCoin News

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