Bitcoin’s (BTC) recent price surge, which has seen the cryptocurrency increase by 10% over the past seven days, has placed 95% of its holders in profitable positions. This upward momentum suggests that Bitcoin could be on the verge of hitting a new all-time high.
Currently, the price is close to retesting the $70,000 mark. This on-chain analysis explains how the coin could climb beyond this level and what it could mean for investors.
Bitcoin’s Uptober Gets Back on Track
Bitcoin’s price action in October initially raised concerns, as it dropped from $63,000 to below $59,000. This led to doubts about the potential of the traditionally bullish “Uptober.” However, since mid-October, Bitcoin has rebounded, and the positive momentum suggests the possibility of a strong end to the month.
Based on the Global In/Out of Money (GIOM) data, BTC is in a strong position to make further gains. The GIOM identifies the average price at which coins were purchased and compares it with the current price. If the weighted on-chain cost basis is higher than the current price, then addresses are at a loss.
Conversely, if the current price is higher than the purchase price, then addresses are in profits. From a price perspective, the higher the cluster of addresses or volume, the stronger the support or resistance.
Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving
Currently, only 994,100 addresses (holding approximately 630,000 BTC) are in unrealized losses, which is significantly lower than the number of profitable addresses.
Historically, when the majority of holders are in profit, it often correlates with bullish trends. Therefore, it is likely that the coin might break beyond the average purchase price of $72,500, which is a weak supply wall.
Besides this, the Market Value to Realized Value (MVRV) pricing band, which estimates price levels that cryptos can reach, suggests that Bitcoin price could hit $78,143 sooner than expected.
BTC Price Prediction: Rally to Continue
Bitcoin has broken out of the descending channel it has been trading in since March, according to the daily chart.
The Awesome Oscillator (AO), a tool used to confirm trends by comparing historical and recent price movements, shows an increase. When the AO’s reading is positive, it signals growing momentum, while a decline indicates bearish movement.
Currently, the rising AO suggests that Bitcoin’s bullish momentum remains strong.
Read more: Where to Trade Bitcoin Futures: A Comprehensive Guide
If this momentum holds, Bitcoin’s price could rally by 14.25%, potentially reaching $78,000. However, if selling pressure arises in the short term, the coin’s value may retreat to $62,555.
The post Bitcoin (BTC) Set to Ensure 100% Holder Profitability as Price Eyes $78,000 appeared first on BeInCrypto.
