Bitcoin (BTC) has registered a slight drop, currently hovering around $61,639, reflecting a 3.5% decrease in the last 24 hours. This decline follows a significant recovery by the primary cryptocurrency last week, surging to a peak of $66,000.
Despite this recent setback, Bitcoin has still demonstrated a 9.4% increase over the preceding two weeks.
While the specific reasons behind the present downward movement remain unclear, analysts are tracking various patterns and significant levels that Bitcoin investors should keep an eye on as they assess the future price direction of the asset.
Crucial Levels and Changes in Bitcoin Holders’ Behavior
Peter Brandt, a seasoned trader, recently provided his analysis on the Bitcoin market, highlighting a critical level that bulls need to recapture.
Brandt suggested that Bitcoin investors and traders should monitor if BTC closes above $71,000, accompanied by a fresh all-time high (ATH), as an indication that the uptrend since November 2022 remains intact.
Stating in his report,
“The most recent surge in Bitcoin did not disrupt the 7-month pattern of decreasing highs and lows.”
Meanwhile, data from CryptoQuant has pointed out a shift among Bitcoin holders, particularly short-term holders (STHs). The total Bitcoin supply held by STHs has dropped by approximately 1.31 million BTC (around $83 billion).
Axel Adler Jr, an analyst at CryptoQuant, explained that this decline reflects “growing confidence in the market,” with fewer BTC circulating among STHs who are choosing to retain their assets (HODL).
Moreover, while some short-term holders have cashed in on profits by selling their coins, the overall trend indicates a movement toward longer-term holding strategies.
Contributing to the discourse on market sentiment, renowned crypto analyst Willy Woo shared his perspectives on Bitcoin’s present and future price structure.
He suggested that the mid-range outlook is transitioning from bearish to neutral and might be on the verge of turning bullish. Woo also forecasted that achieving a new all-time high for Bitcoin could take time, with the next bullish attempt potentially occurring after a “cooldown” period lasting 1-3 weeks.
According to him, October may see limited movement, but heightened bullish activity could be anticipated in November and December.
Open Interest and Active Addresses Indicate Varied Trends
Besides the analyses of individual experts, market metrics offer further insights into the state of Bitcoin.
Open interest, a crucial gauge of the total number of unsettled derivative contracts, is closely monitored by Bitcoin investors.
Based on Coinglass data, Bitcoin’s open interest has recently dropped by 4.52%, settling at $32.92 billion.
On the flip side, open interest volume has surged, climbing by 61.23% to hit $101.57 billion. This escalation in volume, despite the decline in overall open interest, indicates increasing trading activity and interest in Bitcoin derivatives, although the extent of this surge translating into a lasting price upturn remains uncertain.
Another significant metric is the count of active Bitcoin addresses, which has displayed signs of recovery.
The metric has shown a notable uptick, surpassing 863,576 active addresses currently, representing a substantial increase from the 603,000 active addresses recorded at the beginning of the previous month.
This surge in activity may signify a resurgence in market participation and potentially indicates a shift towards enhanced usage and trading among Bitcoin holders.