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Bitcoin briefly touches $28,000 again, but can it rally past?

2min Read

Bitcoin’s short-term holders have held on to their supply, despite the coin’s brief stint at $28,000. Should this continue, BTC’s price might be able to surge past this new resistance level.

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  • Although BTC’s price reclaimed the $28,000 price level recently, short-term holders have refused to sell.
  • Accumulation remains steady despite the coin’s return below $27,500. 

Bitcoin’s [BTC] price briefly reclaimed the $28,000 price point during the intraday trading session on 5 October, but it remains to be seen whether or not the coin can rally past this new resistance level. 

At press time, the leading coin exchanged hands at $27,491, according to data from CoinMarketCap.


How much are 1,10,100 BTCs worth today?


Short-term holders are the ones to watch

BTC short-term holders (STH) are investor cohorts who have held their coins for less than 155 days. They are typically more price-sensitive than long-term holders (LTHs), as they have their coins easily accessible and ready to distribute once BTC’s price falls below their cost basis. 

In a new post, pseudonymous CryptoQuant analyst Tarekonchain assessed BTC’s Realized Price – UTXO Age Bands. The metric proves useful in this regard as it depicts a pattern of coin distribution amongst STHs whenever BTC’s price climbs to the level where they purchased their coins. 

According to data from CryptoQuant, the Realized Price for BTC’s STH at press time rested above the coin’s current price, suggesting that these investors were in profit.

Source: CryptoQuant

However, as pointed out by Tarekonchain:

“There has been no significant influx of Bitcoin from these groups into the market till now. This lack of activity suggests that these investors are holding their positions, refraining from mass sell-offs.”

The analyst added further that if these investors “maintain their Bitcoin holdings without transferring to exchanges, there’s a high chance of prices rising. Conversely, if transfers increase, a price drop might be imminent.”

BTC on the daily chart

Following BTC’s price descent below $27,500, its Chaikin Money Flow (CMF), which attempted a cross over above the zero line during the trading session on 5 October, resumed its downtrend.

At press time, the indicator returned a negative value of -0.05, suggesting some weakness in the BTC market. This showed considerable liquidity has exited the market in the last 24 hours.

Despite this, coin accumulation remained steady. The Relative Strength Index (RSI) and Money Flow Index (MFI), with respective values of 57.13 and 67.65, depicted this. 


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Moreover, as gleaned from the coin’s Directional Movement Index (DMI), BTC’s buyers remained in control of the coin’s spot markets.

At press time, the positive directional indicator (green) at 29.12 rested above the negative directional indicator (red) at 10.22. This signaled that the buyers’ strength exceeded the sellers.

Source: BTC/USDT on TradingView

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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