Why Bitcoin’s run to $28K could only be the beginning
- About $1.17 billion BTC was accumulated in September, driving the king coin up to $28,000.
- On-chain metrics including Bitcoin’s circulation and exchange flow supported a potential rise to $30,000.
Bitcoin [BTC] began October in scintillating fashion, as the king coin broke past $28,0000. Its price increase also triggered a hike in the values of other cryptocurrencies, leading the broader market cap to reach $1.12 trillion.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
However, BTC’s increase was not without cause, and Santiment did well to highlight the underlying influences. According to the on-chain analytic platform, addresses holding 10 to 10,000 BTC accumulated a combined $1.17 billion worth of the coin in September.
Going strong regardless
Typically, increased accumulation by both the retail and whale cohorts has a positive impact on most cryptocurrencies. This time, it wasn’t different, with the result starting to show on 1 October.
🐳 #Bitcoin has blasted back above $28K for the first time since August 17th. With 10-10K $BTC wallets accumulating a combined $1.17B since September 1st, a return to a $30K market value looks more and more likely unless these wallets now start dumping. https://t.co/sdcPWGiBMg pic.twitter.com/zN741HmDqh
— Santiment (@santimentfeed) October 2, 2023
But Santiment did not stop there. According to its post on X (formerly Twitter) shown above, Bitcoin had more potential to reach $30,000 than to experience a notable drawdown. Interestingly, this projection could be possible, as other on-chain metrics seem to support it.
For a start, let’s take a look at Bitcoin’s circulation. Up until 29 September, Bitcoin’s circulation was 343,000. At press time, the metric had fallen to 302,000. Circulation shows the number of unique coins used during a period.
Spikes in this metric may indicate a rise in short-term sell pressure. So, since BTC’s seven-day circulation dropped, it means that the coin may not experience significant sell pressure soon. Hence, a continuation of the price increase is possible.
Bitcoin’s Market Value to Realized Value (MVRV) ratio also increased. The MVRV ratio helps to evaluate the tops and bottoms of the Bitcoin market. It also gives an idea if a cryptocurrency is at a fair value, undervalued, or if it’s overpriced.
At the time of writing, the seven-day MVRV ratio was 5.328%, indicating that the market has made some profits. Despite the increase, the metric showed that BTC still has a good potential to move toward $30,000 since the MVRV ratio was not even yet at a 10% increase.
Source: Santiment
Positive conviction neutralizes pessimism
An alternative metric to check for Bitcoin’s potential is the exchange flow. At press time, Bitcoin’s exchange inflow was 1588. This metric measures the number of coins transferred from non-exchange wallets to exchange addresses.
On the other hand, the exchange outflow was 2044. As the opposite of the inflow, the exchange outflow is the number of coins transferred from exchange wallets to external addresses. So, the difference between the metrics is an indication that more participants were willing to HODL than sell.
Source: Santiment
How much are 1,10,100 BTCs worth today?
Hence, it is unlikely for Bitcoin to lose hold of $28,000. Meanwhile, bears have not given up on BTC despite the price increase. According to research and data analyst, Axel Adler, bearish traders were attempting to push down the market price. So, bulls may need to watch out for that.
An attempt with $77M of bears 🐻 to push the market down. pic.twitter.com/1M0uB7qRqF
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 2, 2023
On the other end, another analyst, Michaël van de Poppe opined that Bitcoin could hit $40,000 in the last quarter (Q4). He based his projection on the possible ETF approval, and the historical pre-halving rally.
Welcome to Uptober.
Welcome to Q4, which is leading towards a great quarter, potentially fueled by ETF approvals and the pre-halving rally.
Potentially #Bitcoin to $40,000 is reasonable.
— Michaël van de Poppe (@CryptoMichNL) October 1, 2023
