- Bitcoin surged past $27,000, sparking optimism in the crypto market.
- Significant outflows of Bitcoin from exchanges coincided with the bullish run.
In recent times, Bitcoin [BTC] has been on a bullish run, approaching the $28,000 mark and sparking renewed optimism among investors.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Pulling out from exchanges
According to data from Santiment, there was a substantial movement of Bitcoin from exchanges, with the most significant number of coins (over 10,000 BTC) leaving exchanges since 7 September.
This trend coincided with Bitcoin’s second attempt to breach the $28,000 market value threshold.
However, it’s worth noting that unique Bitcoin addresses have reached their lowest point in six weeks. This drop in unique addresses could be interpreted in both positive and negative lights.
On the one hand, it might indicate a consolidation of holdings by long-term investors. On the other hand, it might suggest a slowdown in the acquisition of new Bitcoin users or addresses.
Another key factor was the growing percentage of addresses in profit. The Percent Addresses in Profit (7d MA) metric recently hit a one-month high of 68.266%.
While this signals profitability for Bitcoin holders, it can also attract higher sell-offs, as some investors may seize the opportunity to book profits during this bullish phase.
View metric:https://t.co/ik5IkrcQZM pic.twitter.com/HDRU04cPBk
— glassnode alerts (@glassnodealerts) October 5, 2023
Traders get optimistic
Traders showcased their optimism during this period. The put-to-call ratio for Bitcoin declined from 0.49 to 0.46, which implied a shift in sentiment towards more bullishness among traders. A lower put-to-call ratio suggested a higher proportion of traders expecting price increases.
Observing the Open Interest (OI) normalized Cumulative Volume Delta (CVD) for Bitcoin, a decline was noted. OI-normalized CVD provides insights into the buying and selling pressure within the market. The decline suggested that buying pressure was waning.
Furthermore, the Implied Volatility (IV) of Bitcoin’s ATM options was on the rise, reflecting market expectations of future volatility. Increasing IV could indicate uncertainty or expectations of larger price swings in Bitcoin’s future.
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Traders often closely monitor IV to make informed decisions.
Lastly, miner revenue for Bitcoin declined. This could lead to higher selling pressure among miners as they sought to maintain profitability. If miners start to sell off their holdings, other addresses may soon be tempted to sell off their BTC as well.