The recent price increase of Bitcoin (BTC) has resulted in a 10% increase in the value of cryptocurrencies over the past 7 days, with 95% of holders reporting profits. This upward trend is interpreted as a signal that Bitcoin may set a new all-time high.
The current price is likely to retest the $70,000 level. This on-chain analysis explains how the coin can surpass this level and the impact it will have on investors.
Bitcoin's 'Uptober' is back on track
Bitcoin's price movement in October initially raised concerns, dropping from $63,000 to below $59,000. This raised doubts about the potential of the traditionally bullish 'Uptober'. However, Bitcoin rebounded in mid-October, and the positive momentum is expected to continue through the end of the month.
According to Global In/Out of Money (GIOM) data, BTC is in a strong position for further upside. GIOM compares the average price at which coins were purchased to the current price. If the weighted on-chain cost basis is higher than the current price, the addresses will be in a loss position.
Conversely, if the current price is higher than the purchase price, the addresses will be in profit. From a price perspective, the higher the clustering of addresses or transaction volume, the stronger the support or resistance.
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Currently, around 994,100 addresses (holding around 630,000 BTC) are in an unrealized loss position, which is significantly lower than the number of addresses in profit.
Historically, when the majority of holders are in profit, it is often associated with a bullish trend. Therefore, the coin is likely to surpass the average purchase price of $72,500, which is a relatively weak supply wall.
Additionally, the Market Value to Realized Value (MVRV) price range suggests that Bitcoin's price could reach $78,143 faster than expected.
BTC Price Prediction: Bullish Momentum Continues
The daily chart shows that Bitcoin has broken out of the downward channel it had been trading in since March.
The Awesome Oscillator (AO), a tool that compares historical and recent price movements to confirm the trend, is increasing. A positive AO value indicates growing momentum, while a decreasing AO suggests a bearish trend.
The current rising AO suggests that Bitcoin's bullish momentum remains strong.
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If this momentum is maintained, Bitcoin's price could rise by 14.25% to reach $78,000. However, if short-term selling pressure emerges, the coin's value could retreat to $62,555.
