Bitcoin enthusiasts have eagerly anticipated the resurgence of Bitcoin to reach the $70,000 threshold. This can be seen through the substantial sum of unrealized profits – A clear indicator that Bitcoin holders have chosen to HODL their positions, in hopes of witnessing the price surge further.
A recent analysis by CryptoQuant unveils that Bitcoin is currently holding over $7 billion in unrealized profits. This finding not only showcases the extent of HODLing activity but also underscores the expectations for higher price levels. Yet, it also hints at the likelihood of significant correction if profit-taking activities resume.
If Bitcoin investors decide to secure their profits, the resulting selling pressure could trigger a scenario similar to the market turmoil observed towards the end of July. Nonetheless, the prevailing optimism has thus far enabled Bitcoin to retain its value on the market.
Currently, Bitcoin is being traded at $68,350, positioning it less than 2.4% away from reaching the coveted $70,000 mark. Additionally, the cryptocurrency appears to be inching closer to the resistance levels situated between $69,400 and $71,500.
Bitcoin Transaction Volumes Plummet to the Lowest Figures in 2024
The movement of Bitcoin on exchanges could unveil valuable insights into the recent upsurge in the cryptocurrency’s value.
Although there was a noticeable increase in both incoming and outgoing Bitcoin transactions between 13th and 16th October, exchange activities have since dwindled to their lowest point this year.
Statistics reveal that within the last 24 hours, 3,760 BTC were withdrawn from exchanges while approximately 3,940 BTC were deposited into exchanges, indicating a slightly higher influx than outflow.
The fluctuation in exchange flows suggests that Bitcoin might be gearing up for heightened market volatility. The direction of the ensuing market swing (bullish or bearish) remains uncertain, yet an analysis of address activity could provide revealing insights.
The tally of active sending addresses has been decreasing since mid-October, plummeting from 860,161 addresses on the 15th to 478,148 addresses by the 18th of October.
In contrast, receiving addresses surged from 379,545 addresses on the 13th of October to 625,308 addresses by the 18th. Furthermore, data indicates that the number of addresses purchasing Bitcoin significantly surpassed those selling it, with receiving addresses increasing as sending addresses diminished.
Address transactions signify a notable shift, showcasing diminished selling pressure despite the recent price upsurge. While these trends hint at a potential Bitcoin rally, an unexpected surge in selling pressure could still be in the offing.