- In September, approximately $1.17 billion of BTC was collected, pushing the king coin to $28,000.
- On-chain metrics, including Bitcoin’s circulation and exchange flow, supported a potential increase to $30,000.
Bitcoin [BTC] October started off in sparkling fashion, as the King Coin broke past $28,000. The price increase also caused the values of other cryptocurrencies to rise, pushing the broader market capitalization to $1.12 trillion.
Read Bitcoin’s [BTC] Price forecast 2023-2024
However, BTCs increase was not without reason, and Santiment did well to emphasize the underlying influences. According to the on-chain analytics platform, addresses holding 10 to 10,000 BTC accumulated a combined $1.17 billion worth of the coin in September.
Strong anyway
Typically, increased accumulation by both the retail and whale cohorts has a positive impact on most cryptocurrencies. This time was no different: on October 1, the results started to become visible.
🐳 #Bitcoin rose above $28,000 for the first time since August 17. With 10-10K $BTC While portfolios have accumulated a combined value of $1.17 billion since September 1, a return to a $30K market value seems increasingly likely unless these portfolios start dumping now. https://t.co/sdcPWGiBMg pic.twitter.com/zN741HmDqh
— Santiment (@santimentfeed) October 2, 2023
But Santiment didn’t stop there. According to the post on X (formerly Twitter) shown above, Bitcoin had more potential to reach $30,000 than to experience a notable pullback. Interestingly enough, this projection could be possible, as other on-chain metrics seem to support it.
To start, let’s take a look at the circulation of Bitcoin. Until September 29, Bitcoin’s circulation was 343,000. At the time of writing, the statistic had dropped to 302,000. Mintage shows the number of unique coins used over a period of time.
There may be spikes in this statistic assign an increase in short-term selling pressure. So since BTC’s seven-day circulation has fallen, it means the coin may not experience significant selling pressure anytime soon. A continuation of the price increase is therefore possible.
Bitcoin’s market value to realized value (MVRV) ratio also increased. The MVRV ratio helps evaluate the tops and bottoms of the Bitcoin market. It also gives an idea of whether a cryptocurrency has a fair value, is undervalued or overpriced.
At the time of writing, the seven-day MVRV ratio stood at 5.328%, indicating that the market has made some gains. Despite the increase, the benchmark showed that BTC still has a good score potential to move towards $30,000 as the MVRV ratio had not even reached a 10% increase.
Source: Santiment
Positive belief neutralizes pessimism
An alternative metric to check Bitcoin’s potential is exchange flow. At the time of writing, Bitcoin inflows amounted to 1588. This metric measures the number of coins transferred from non-exchange wallets to exchange addresses.
On the other hand, the exchange outflow was 2044. Unlike the inflow, the exchange outflow is the number of coins transferred from exchange wallets to external addresses. The difference between the measurement data is therefore an indication that more participants were willing to do this HODL then sell.
Source: Santiment
How many Worth 1,10,100 BTC today?
Therefore, Bitcoin is unlikely to lose its hold at $28,000. Meanwhile, the bears have not given up on BTC despite the price increase. According to research and data analyst Axel Adler, bearish traders tried to push down the market price. So bulls may have to pay attention to that.
An attempt with $77 million worth of bears 🐻 to push the market down. pic.twitter.com/1M0uB7qRqF
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 2, 2023
On the other hand, another analyst, Michaël van de Poppe, opined that Bitcoin could reach $40,000 in the last quarter (Q4). He based his projection on the potential adoption of ETFs and the historic rally before the halving.
Welcome to Uptober.
Welcome to the fourth quarter, which is shaping up to be a banner quarter, possibly fueled by ETF approvals and the pre-halving rally.
Possibly #Bitcoin up to $40,000 is reasonable.
— Michaël van de Poppe (@CryptoMichNL) October 1, 2023