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Bitcoin recovered above the much-coveted $28,000 level on Oct. 6, reaching highs of $28,288. In the days following, Bitcoin oscillated back and forth near the $28,000 critical level but was unable to surpass the $28,110 mark.
Santiment, a blockchain analytics start-up, provides a context for what happened in the last few days regarding the Bitcoin price, which partly triggered the rise to $28,000 and also hampered the price advance.
Bitcoin had the most coins, with over 10,000 BTC moved off exchanges since Sept. 7 as it made significant efforts to stay over $28,000.
Tokens taken off exchanges might be a positive indication because it suggests that investors are transferring their coins to cold storage with no intention of selling.
According to Santiment, Bitcoin experienced its largest exchange outflow in a month, with the supply of BTC on exchanges falling to 5.68%, the lowest since 2017.
Despite bulls' efforts, one ingredient was missing to further fuel bullish action: utility. As a result, the bulls' attempts stalled.
Tomiwabold OlajideSantiment states that utility in this context might be an essential ingredient in a bullish Bitcoin move. Analysts often observe a positive correlation between increasing on-chain activity and the price of Bitcoin.
In this regard, Bitcoin's unique addresses are currently at six-week lows. Bitcoin active addresses at 862,000 mark the lowest since Aug. 26.
At the time of writing, BTC was down 1.21% in the last 24 hours to $27,517. The current market environment reflects high instability; hence, Bitcoin and the rest of the crypto market are losing ground in early Monday trading.
Meanwhile, Bitcoin must remain above $27,000 to prevent bearish momentum from forming. If Bitcoin falls below $26,700, a retest of the $26,000 mark is possible.
A plausible setting would be for Bitcoin to remain in its current trading range of $27,000 to $27,500, with the possibility of reaching $26,700 or $27,800 in negative or positive scenarios.
Alex Dovbnya
U.Today Editorial Team
Vladislav Sopov
Dan Burgin