Bitcoin’s Recent Surge: What to Expect

According to Glassnode, a noted on-chain analytics firm, Bitcoin’s (BTC) performance for the remainder of 2023 seems poised to finish just as strong as it started. With October bringing a nearly 30% gain, it appears the crypto giant is gearing up for a potential uptrend that investors might want to keep their eyes on.

Breaking Resistance: BTC’s Key Milestones

This week, Bitcoin crossed a crucial psychological threshold of $35,200, smashing through various key resistance levels that had turned into pesky obstacles over the previous months. Glassnode pointed out that these levels included significant moving averages, including the 200-week simple moving average (SMA) that loitered around $28,400, long considered the ‘bear market’ support line.

• 200-day Moving Average: Served as a beacon of resistance until recently.
• 111-day Moving Average: Another barrier that Bitcoin’s bulls joyously outmaneuvered.
• Propitious Profitability: Many of the newer investors are now tasting the sweet nectar of profits—an average of 20% as they surpass the $28,000 mark.

“After a month of the market grinding higher, the bulls found sufficient strength this week to convincingly break through.” – Glassnode

The Short-Term Holder (STH) Dynamics

Glassnode also highlighted some interesting shifts among short-term holders. The cost basis for this box of market newcomers now sits comfortably above $28,000, an interesting juxtaposition to the previous lows which saw the STH market-value-to-realized-value (MVRV) ratio suggest a downturn. Despite the recent bump, no major capitULATION (see what I did there?) has been observed.

Long-term Holders versus Short-term Holders

In the ongoing saga of Bitcoin, a distinct trend has emerged: long-term holders (LTH) now dominate the distribution of Bitcoin supply. Owning more than three-quarters of the BTC market, their cost basis hovers closer to $20,000. While some skeptics suggest Bitcoin may tumble back down, Glassnode remains buoyant, asserting that this situation lays a solid groundwork for a 2023 ending in the green.

The Road Ahead: Critical Observations

As the year approaches its final quarter, the presence of a greater percentage of supply and investors above the average break-even price (around $28k) heralds a promising future. Investors are clearing out several key technical levels, and these transitions may significantly influence market sentiment in the weeks to come.

So, whether you’re hoarding BTC under your mattress or trading it on a platform, ensuring you stay updated on these developments could be crucial for navigating the rollercoaster that is the cryptocurrency market.