Bitcoin (BTC) Rally Towards $40,000: Key Indicators and Factors
Date: 2023-10-21 Author: Dima Zakharov Categories: BUSINESS
Bitcoin Price Returns to the $30,000 Mark
Over the past few days, the price of Bitcoin has experienced instability, and investors have been seeking clarity regarding the future of the cryptocurrency. However, on October 20, Bitcoin returned to the $30,000 mark, nullifying the losses caused by mass liquidations that occurred following a fake publication by Cointelegraph about the imminent launch of a spot ETF. This event has provided a positive signal to the cryptocurrency market and piqued the interest of investors.
BTC.D Nears 53% for the First Time Since 2021
Bitcoin's dominance (BTC.D), which measures Bitcoin's share of the total cryptocurrency market capitalization, reached a level of 53%. This is a significant event as such a high level of dominance has not been observed since 2021. This fact indicates that Bitcoin is strengthening its position and regaining the trust of investors.
Since November 2021, "hodlers" Have Accumulated Over 3 Million BTC
Long-term Bitcoin holders, known as "hodlers," are increasing their positions in the cryptocurrency. According to data from the analytical platform Glassnode, since the peak of the bull market in November 2021, long-term holders have acquired over 3 million BTC, while short-term holders have reduced their positions by more than half. This reflects trust and belief in Bitcoin's long-term potential as an investment asset.
Growing Bitcoin Dominance and Accumulation Are Driving Price Growth
Growing Bitcoin dominance and the accumulation of coins by long-term holders create a favorable environment for further price growth. Bitcoin's dominance in the cryptocurrency market has continued to rise for 10 consecutive days, indicating the strengthening of its position. Events related to the Middle East crisis and the unstable macroeconomic situation also influence investors' confidence in Bitcoin.
BTC Price Forecast: $40,000 Within Reach
Based on these key indicators, the scenario of Bitcoin's price reaching $40,000 is becoming increasingly realistic. However, to achieve this goal, Bitcoin will need to overcome initial resistance around $30,130. It is important to note that the cryptocurrency market is always subject to changes, and investors should monitor further developments and news that may impact its dynamics.
