Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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.
Santiment 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
Valeria Blokhina
