Bitcoin has shown resilience in the market, with the price breaking a critical resistance level of $63,000 on Bitfinex. This has sparked optimism among traders, leading to a daily high of $66,288 on Oct. 14. The latest “Bitfinex Alpha” report suggests that key on-chain metrics indicate the potential for further upside in the price of Bitcoin.
One important metric to consider is the realized price of unspent transaction output (UTXO) age bands, which helps segment Bitcoin holders based on the average acquisition price and duration of their holdings. Historically, breaking through certain realized price levels for short-term and mid-term holders has signaled bullish momentum. Bitcoin is currently trading between $63,000 for short-term holders and $55,000 for mid-term holders, indicating a potential for further gains if the price remains above $63,000.
Despite last week’s struggles and volatility in the market, Bitcoin has shown resilience. The market recovered from a dip to $58,943, driven by spot selling on exchanges like Coinbase. The Coinbase Premium Gap, which tracks price differences between exchanges, fell by 100 points during this period. However, the market remained stable, with no widespread panic selling observed.
As of Oct. 14, Bitcoin is up 4.8% over the past 24 hours, trading at $65,854. While the price has broken the $63,000 resistance level, a solid daily close above this level is needed to confirm further upward movement. The report suggests that even if there is a short-term correction, Bitcoin is poised for a strong rebound.
In addition to Bitcoin’s performance, the overall crypto market is valued at $2.29 trillion with a 24-hour volume of $92.28 billion. Bitcoin dominance stands at 56.86%, reflecting its significant impact on the market.
Overall, the outlook for Bitcoin remains positive, with key metrics signaling potential upside and resilience in the face of market volatility. Traders and investors are watching closely to see if Bitcoin can maintain its current momentum and continue its rally in the coming days.