Bitcoin (BTC) could continue to rally as key on-chain metrics suggest that more upside is possible after clearing a critical resistance at $63,000, according to the latest edition of the “Bitfinex Alpha” report.
Bitcoin hit a daily and local high of $66,288 on Oct. 14 following a blistering rally that reignited traders’ optimism about the “Uptober” thesis.
As of press time, BTC was up 4.8% over the past 24 hours and trading at $65,854, based on CryptoSlate data,
Key metrics are bullish
The realized price of unspent transactions output (UTXO) age bands are an important market indicator and are commonly used to segment Bitcoin holders by the average acquisition price based on the duration of their holdings.
Historically, realized prices for short-term holders — addresses holding BTC for less than 155 days — and mid-term holders — addresses holding BTC for 6 months to 12 months — have served as critical thresholds.
When Bitcoin fails to break through these levels, it often signals bearish tendencies. Conversely, surpassing them suggests renewed bullish momentum, indicating that new buyers are comfortable holding above these levels.
Bitcoin was trading between two key realized price zones: around $63,000 for short-term holders and $55,000 for mid-term holders.
The report highlighted that BTC moving above $63,000 could set the stage for further gains, which is a movement currently in place. Additionally, failing to break the resistance would take the price as low as $55,000.
Although it broke the $63,000 resistance, BTC still needs a solid daily close above this level to convince the market to chase higher ground, the report added.
Market shows resilience
The movement seen on Oct. 14 happened despite last week’s struggle when Bitcoin crashed to $58,943.
The volatility was driven largely by spot selling on centralized exchanges, particularly Coinbase, where selling pressure intensified as Bitcoin dipped below $59,000.
The Coinbase Premium Gap, a key metric tracking the price difference between Coinbase and other exchanges, also showed weakness, falling by 100 points. Nevertheless, the market remained resilient, leading to a recovery.
The absence of widespread panic selling, even as the Coinbase Premium turned negative, suggests underlying stability. The report cautioned that there is still a possibility of a short-term correction but added that Bitcoin is poised for a strong rebound even if the price returns to lower levels.
At the time of press 10:55 pm UTC on Oct. 14, 2024, Bitcoin is ranked #1 by market cap and the price is up 4.74% over the past 24 hours. Bitcoin has a market capitalization of $1.3 trillion with a 24-hour trading volume of $42.09 billion.
Bitcoin
10:55 pm UTC on Oct. 14, 2024
$65,813.22
4.74%
At the time of press 10:55 pm UTC on Oct. 14, 2024, the total crypto market is valued at at $2.29 trillion with a 24-hour volume of $92.28 billion. Bitcoin dominance is currently at 56.86%.