Bitcoin Starting Up in 2023 After 26% Uptober BTC Price Gains – Research
Bitcoin (BTC) is about to end 2023 as it started with a 30% rise in October, according to on-chain analytics firm Glassnode.
In the latest edition of the weekly newsletter released on October 24, analysts argued that the previous week “sets the groundwork” for BTC's price increase.
BTC price overcomes “convincing” resistance levels
As it reached $35,200 this week, Bitcoin bucked several key trends, which had previously served as support for months.
These include various moving averages (MAs), including the 200-week simple MA at $28,400 – a classic “bear market” support line.
“Long-term easy-to-move prices cluster around $28k, and have market resistance through September and October,” Glassnode explained.
“After a month of market highs, the bulls have found enough strength to convincingly break above the 111-day, 200-day and 200-week moving averages this week.”
As a result, the profitability of various groups of investors has improved significantly. Estimates and the cost base for market newcomers are around $28,000.
“The short-term holding (STH) price base is now in the $28k rear view mirror, putting the average recent investor at +20% profit,” “The Week On-Chain” continued.
Researchers have uploaded a short-term owner's market-value-to-realized-value (STH-MVRV) ratio chart that tracks the profitability of STH coins. Even before October, no major capital behavior was seen.
“In 2021-22 we could see instances of STH-MVRV reaching relatively deep corrections of -20% or more,” he explained.
“While the August selloff reached a low of -10%, it's worth noting how shallow this MVRV decline is in comparison, given that the recent correction has found significant support, a precursor to this week's rally.”
Bitcoin “lays the groundwork” for a green year.
As Cointelegraph reports, the presence of STH units alongside their more experienced counterparts, long-term holders (LTHs), is now historically low.
Related: Bitcoin price model expects to hit $45K ‘phase' in November
Despite their own profitability issues, LTHs held more than three-quarters of the current BTC supply for the first time.
The price base is low, around $20,000 more – and while some believe Bitcoin may still return to that area, Glassnode is optimistic about how the year will end.
“A significant portion of the supply and investors now find themselves above the average vacation cost, which is around $28k,” he concluded.
“This lays the groundwork for a resumption of growth in 2023. At the very least, the market has passed several key stages where overall investor psychology can be established, making it important to watch closely in the coming weeks.”
According to data from on-chain monitoring source CoinGlass, BTC/USD is currently up 26% this month – by October standards, still relatively modest.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
