Bitcoin enthusiasts have had much to celebrate this week as the leading cryptocurrency surged past the $26,000 mark, marking an impressive 5% gain.

This bullish momentum remained largely unshaken even in the wake of the US Consumer Price Index release, which indicated a 0.6% uptick in inflation. However, amidst Bitcoin’s present subdued volatility in the market, speculation is rife among cryptocurrency enthusiasts regarding Bitcoin’s trajectory.

Notably, the co-founders of Glassnode, a popular crypto analytics platform operating on the X platform under the pseudonym “Negenthropic”, have weighed in with their insights, shedding light on a potential path that could lead Bitcoin back to the coveted $30,000 threshold shortly.

Via a September 15 Tweet, the co-founders underscored a shift in Bitcoin’s risk ratio, which has dipped into the 60s. According to them, this shift signified a growing positive sentiment surrounding the cryptocurrency, with increasing investors viewing it as a favourable investment option.

The duo went on to identify key hurdles at $27,400 and $28,200, where traders may choose to capitalize on profits and potentially trigger temporary price corrections. Despite these challenges, the analysts argued that Bitcoin will ultimately overcome these resistance levels, surging past the psychological barrier of $30,000.

“Risk Signal’s nosedive into the 60s signifies this attitude shift. Profit booking pressure may loom around $27.4k and $28.2k, but this climb seems poised as a step before tackling the psychological barrier at $30k,” they wrote.

The last time Bitcoin reached this milestone was back in mid-June, and since then, it experienced a decline of over 11%. One significant event contributing to this decline was the Bitcoin sell-off by aerospace company SpaceX in August, as ZyCrypto reported.

That said, notable Bitcoin fundamentals have also improved in recent weeks, with data from IntoTheBlock revealing that Bitcoin is currently positioned at a crucial on-chain support level. As per the firm, over 2.5 million addresses entered the market over the past week, collectively acquiring around 834 BTC at an average price of $25,850 per Bitcoin. This surge in accumulation underscores a robust demand within the current price range.

Notably, Bitcoin also witnessed a remarkable surge in exchange outflows, with inflows over the past week totalling a mere $10 million compared to a substantial $70 million in outflows. 

In addition, the value of the Bitcoin network, determined by its size and activity, has experienced a rapid ascent to an unprecedented all-time high this week. According to Timothy Peterson, an investment manager at Cane Macro, this surge can be attributed to record-breaking address counts across all size categories and the third-highest level of transaction activity in the history of Bitcoin.

As of the time of writing, Bitcoin is trading at $26,874, registering an increased loss of 1.36% in the last 24 hours, according to data from CoinMarketCap.

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Filed under: Bitcoin - @ September 18, 2023 8:07 pm