Bitcoin Hits $28,500 Mark, Fueling Hopes for ‘Uptober’ Rally (Data)

Bitcoin rose above $28,400 for the first time since mid-August, fueling investor optimism that “Uptober” has arrived. The data suggests that BTC wallets have accumulated billions of dollars in the past month, which could push prices higher.

A similar sentiment was felt by experts who embraced the bullish outlook as the leading cryptocurrency rose to a six-week high.

Bitcoin stock

According to Sentiment's latest analysis, Bitcoin wallets holding 10-10k BTC have avoided trading directly or using their coins as collateral. As of September 1, these wallets received a total of 415,000 BTC, which amounts to $1.17 billion. The stock comes against a backdrop of prolonged transfer price movement.

The crypto analytic platform has suggested that Bitcoin's return to the $30,000 market cap looks increasingly plausible.

However, if these wallets start to run out of holdings, it could threaten the current bullish trend, putting it at risk of a reversal.

🐳 #Bitcoin is back above $28K for the first time since August 17th. With 10-10K $BTC wallets accumulating a total of $1.17B since September 1st, a return to the $30K market cap looks more and more likely if these wallets don't start dropping now. pic.twitter.com/zN741HmDqh

— Santiment (@santimentfeed) October 2, 2023

Is Uptober here?

“Uptober” refers to the historical trend of October typically being a favorable month for the performance of Bitcoin and other digital assets. Based on CoinGlass data, October has recorded negative monthly returns on only two occasions since 2013.

The arrival of this trend was confirmed by Bitcoin's sudden jump north of $28,400, pushing the weekly gain to 10%. The price action resulted in the liquidation of more than $97 million worth of BTC shorts in the past 24 hours.

Despite some negative forecasts, experts suggest that the rally will continue in October, a historically favorable month for cryptocurrency markets. In a statement to Bloomberg, Caroline Moron, founder of Orbit Markets, a digital asset derivatives liquidity provider;

“There appears to have been significant buying flows, perhaps driven by the start of the new financial quarter, and the effect was exacerbated by the low liquidity at the end of the week.”

The rally led to the US Securities and Exchange Commission (SEC) finally giving BlackRock Inc. It also got a boost from speculation that it will license Bitcoin ETF ideas.

Going forward, Bitcoin is set to face significant resistance at the $30,000 level, as the next upside hurdle.