Assessing whether Bitcoin can rise above $27k once again
- BTC was down by more than 3% last week and was trading at $26,887.08.
- Though the price action was bearish, on-chain metrics turned bullish.
Bitcoin [BTC] managed to lift its price above $27,000, but last week, things again turned in bears’ favor. This happened because BTC witnessed a major price correction, pushing its price down.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Therefore, let’s take a look at BTC’s performance on multiple fronts last week to see what’s actually cooking.
Bitcoin falls below $27,000
After reaching nearly $28,000 on 9 October, the king of crypto’s price witnessed a price correction. Over the last seven days, BTC’s price has remained under $27,000. At press time, it was trading at $26,887.08 with a market capitalization of over $524 billion.
Notably, James V. Straten, a popular crypto analyst, recently pointed out how Bitcoin performed over the last week on multiple fronts.
To sum up this week for #Bitcoin
Most likely spot ETF approval (next 6 months. #GBTC closed higher.
Max fear: STHs sold the second most amount of #Bitcoin at a loss this year with record divergence with LTHs (Wednesday).
Speculation is near all time lows, STH supply at all…
— James V. Straten (@jimmyvs24) October 14, 2023
For instance, short-term holders sold the second-largest amount of Bitcoin at a loss this year, with record divergence from long-term holders. This somewhat also reflected on the coin’s supply.
BTC’s Supply outside of Exchanges remained flat while its Supply on Exchanges increased last week, which reflected investors’ fear of a further price plummet. Nonetheless, whale activity around BTC remained high, as evident from its Whale Transaction Count.
A look at Bitcoin’s mining sector
Bitcoin’s upcoming major event is also drawing in, as the blockchain is expecting its halving in 2024. In fact, BTC is less than 28,000 blocks away from halving. BTC’s hash rate reached an all-time high, with difficulty adjusting 6% higher this weekend.
While the event draws closer, miners have started to sell their holdings. Glassnode’s data pointed out that miners’ balance registered a sharp decline over the last month.
Not only that, but as per CryptoQuant, miners were actually selling their assets at a loss compared to their one-year average. Though this reflected the fact that miners weren’t confident in BTC, it could also indicate a possible market bottom.
What to expect from BTC
Though the last week did not go in investors’ favor, the upcoming days might look different, as few of the metrics looked bullish on BTC. For example, Bitcoin’s Binary CDD was green, meaning that long-term holders’ movement in the last seven days was lower than average.
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Its NULP revealed that the market was in a “fear” stage, which is typically a positive sign. On top of that, BTC’s derivatives market indicators also looked optimistic.
Notably, its Taker Buy Sell Ratio and Funding Rate were green, which meant that buying sentiment was dominant in the derivatives market.